If you are married or in a common law relationship, you may need to divide your family property and debt according to the Family Law Act. Family property generally includes anything such as a house, car, bank account, or pension, in either spouses name that exist at the date separation. Family property also includes anything purchased after separation if it comes from family property that existed at the date the parties separate. As an example, if a condo is purchased after the parties separate with family funds that were in a spouse’s bank account on the date of separation, the condo would be considered family property.
Under the Family Law Act (section 83) when parties separate, each spouse is entitled to an equal share in the family property and is equally responsible for family debt, regardless of whether that spouse used or contributed to that property or debt.
The Family Law Act has an extensive list of what things are considered “family property”, including:
a share or an interest in a corporation;
an interest in a partnership, an association, an organization, a business or a venture;
an interest in a partnership, an association, an organization, a business or a venture;
property owing to a spouse
as a refund, including an income tax refund, or
in return for the provision of a good or service;
money of a spouse in an account with a financial institution;
a spouse's entitlement under an annuity, a pension plan, a retirement savings plan or an income plan;
property, other than property to which subsection (3) applies, that a spouse disposes of after the relationship between the spouses began, but over which the spouse retains authority, to be exercised alone or with another person, to require its return or to direct its use or further disposition in any way;
the amount by which the value of excluded property has increased since the later of the date
the relationship between the spouses began, or
the excluded property was acquired.
Family property is determined based on fair market value as at the date it is divided or the date of trial, unless the court determines another date should be used. Things like a chequing account that spouses use on a day to day basis are normally valued at the date the parties separate.
Before you and your spouse negotiate dividing your property and debt it is important to speak to an experienced family lawyer who can give you advice about your rights and obligations. Our family lawyers at Apna Law have extensive experience in assisting their clients with every aspect of asset and debt division at trial and as part of mediation.