How can I Transfer Vehicle Ownership to a Spouse After Divorce in Ontario?

Transferring vehicle ownership to a spouse after separation or divorce in Ontario is a defined process that can often be completed without paying retail sales tax. The transfer must be completed through ServiceOntario and, when done correctly, can form part of a broader family law settlement.

Transferring car keys between spouses during divorce in Ontario vehicle ownership transfer and property division process

In Ontario, a spouse (including a common-law spouse) is considered an eligible family member for a tax-exempt vehicle transfer. This means that ownership of a vehicle can be transferred between spouses without requiring payment of retail sales tax (RST), provided the transfer meets the applicable requirements.

To complete the transfer, specific documentation must be provided at a ServiceOntario centre. This includes a completed Sworn Statement for a Family Gift of a Used Motor Vehicle, proof of Ontario vehicle insurance, and a valid Ontario driver’s licence. You must also provide the Vehicle Ownership Permit, including the completed portion on the back.

In most vehicle transfers, a Safety Standards Certificate is required. However, for spouse-to-spouse transfers, this requirement does not apply. Instead, a spousal declaration form must be completed, which replaces the need for the safety certificate in these circumstances.

If licence plates are also being transferred as part of the process, a plate transfer declaration must be completed. Plate transfers are only permitted between certain family members, including spouses, and must be properly documented at the time of transfer.

Where the vehicle transfer arises out of a separation or divorce, additional tax considerations apply. If the vehicle is transferred as part of a settlement under the Family Law Act, the transfer may qualify for a retail sales tax exemption. To support this, documentation confirming the settlement must be provided.

Acceptable supporting documents include a separation agreement, divorce agreement, court order, or a completed sworn statement confirming the transfer. These documents must be presented at the time of registration to ensure the tax exemption is applied.

Finally, it is important to note that only one tax-exempt transfer of the same vehicle between family members is permitted within a 12-month period. Ensuring that all required documents are complete and accurate before attending ServiceOntario will help avoid delays and ensure the transfer is processed efficiently.

If you are navigating property division in a divorce in Ontario, obtaining legal guidance can help ensure transfers are completed properly and aligned with your settlement.

Contact us today to arrange for a legal consultation to address your property needs.