Property Division Lawyers in Ottawa: RPB Family Law

What is Family Property?

Family property, also known as marital assets, encompasses all assets acquired by spouses during their marriage. This includes real property, personal property, vehicles, investments, pensions, and even outstanding loan amounts owed to one of the spouses. According to the Family Law Act (FLA), family property is defined as any interest, present or future, vested or contingent, in real or personal property. This broad definition ensures that all relevant assets are considered during the division process, providing a comprehensive view of the couple’s financial landscape.

2.  Equalization and Net Family Property (NFP) Calculations

An equalization is a form of payment made by one spouse to the other during a divorce or separation. It only applies to married spouses and not those in common law relationships. To determine how much the other spouse receives as an equalization payment, the participants need to perform a net family property calculation. This involves subtracting the total value of assets at the time of marriage from the total value at the time of separation, addressing common exemptions, and understanding the implications for property division and equalization payments.

Understanding each spouse’s net family property (NFP) is crucial in determining fair property division, including the calculation of equalization payments based on the difference in the spouses’ net family properties.

At RPB Family Law, we handle all net family property calculations to determine how much our clients deserve to get as equalization payment. If you are pushing for an equal property division, we can find proof to support your claims to help you find the best terms.

3. Division of Assets

The division of assets in a divorce or separation can be a complex and contentious issue. In Ontario, the Family Law Act requires that the net family property be divided equally between the spouses. The net family property is calculated by subtracting the debts and liabilities from the total value of the assets.

The division of family assets can be affected by various factors, including:

• The length of the marriage
• The income and earning capacity of each spouse
• The contributions of each spouse to the acquisition and maintenance of the assets
• The needs and circumstances of each spouse

In some cases, the court may order an unequal division of assets if it would be unfair or unconscionable to divide the assets equally. This ensures that the division of property is just and equitable, taking into account the unique circumstances of each case.

How Assets are Divided

In Ontario, the division of assets is governed by the Family Law Act. The general rule is that the net value of the family property (the value of the property owned by the spouses minus any debts and excluded property) be equally divided between both spouses in a divorce. However, the actual assets or value received by each partner will not always be the same and will vary depending on the circumstances of each case and the applicable provincial family law. This approach ensures that both parties receive a fair share of the family property, taking into account their unique financial situations and contributions.

4. JOINT FAMILY VENTURE AND CONSTRUCTIVE TRUST CLAIMS

For people in common law relationships, the presumption of equal interest property rights applicable to married couples does not apply. Therefore, you have to prove that you contributed to your partner’s assets and satisfy the test for unjust enrichment. This can be pretty difficult and you need a reliable lawyer practicing family law in Ottawa to prove the legal test for unjust enrichment.

We can also help prove that you worked collaboratively to achieve a common goal with your partner through a mutual effort to help you engage in a joint family venture. Our lawyers can help you meet the other requirements including economic integration, priority of the family, etc.

5. Inheritance analysis & Financial Disclosure Preparation

We also analyze inheritance and other exclusions due to the complications associated with laws governing division of such property. The concept of spouse’s net family property is crucial in property division, as it determines the value of assets to be divided upon separation. An Ottawa divorce lawyer will also prepare and access required financial disclosure.

6. Debt and Responsibility

Debt and responsibility are critical considerations in the division of assets. In Ontario, both spouses are equally responsible for debts incurred during the marriage, unless they have a marriage contract or cohabitation agreement that specifies otherwise.

When dividing assets, the court considers the following types of debt:

• Joint debts, such as credit card debt and mortgages
• Separate debts, such as personal loans and credit card debt
• Debts incurred by one spouse for the benefit of the other spouse or her spouse

The court may also consider the responsibility of each spouse for the debt, including:

• Who incurred the debt
• Who benefited from the debt
• Who has the ability to pay the debt

Understanding how debts are handled is essential for ensuring a fair division of assets and protecting your financial future.ng your financial future.

7. Common Law Spouses

Common law relationships do not have the same property rights as married spouses under the Family Law Act. However, they may still have rights to property acquired during the relationship, including:

• Jointly owned property
• Property acquired through joint efforts
• Property acquired through a trust or other arrangement

Common law spouses may also have rights to spousal support and child support. However, these rights are not automatic and must be established through a court order or agreement.

In Ontario, common law spouses can enter into a cohabitation agreement, which can provide clarity on property rights and other issues. However, these agreements must be negotiated and signed in good faith, and both parties must have independent legal advice.

It’s essential for common law spouses to understand their rights and obligations under the law and to seek legal advice to protect their interests. This ensures that both parties are aware of their entitlements and can make informed decisions about their future.al advice to protect their interests. This ensures that both parties are aware of their entitlements and can make informed decisions about their future.

8. Alternative Arrangements

In some cases, couples may choose to make alternative arrangements for the division of their assets. This can include:

Marriage Contracts and Cohabitation Agreements

A marriage contract is a legal document signed by couples before or after they marry to protect their rights if they ever split up, including rights to property. Couples in a common law relationship may opt to sign a similar document, called a cohabitation agreement. These legal documents can dictate what happens if the relationship ends, including:

• Division of property
• Spousal support
• Child support

To increase the likelihood a marriage contract or cohabitation agreement will be binding and enforceable, both partners should sign the agreement in front of a witness. Both partners should get independent legal advice from different lawyers and exchange financial information before signing a marriage contract or cohabitation agreement.

9. Special Considerations

There are several special considerations that may affect the division of assets in a divorce or separation.

The Matrimonial Home

The matrimonial home is treated uniquely in the context of net family property calculations. The matrimonial home is excluded from the date of marriage asset calculation. Each spouse is entitled to half the value of the family property, not the assets themselves. In some cases, where the spouses cannot agree as to what to do with the matrimonial home, this may mean the parties both live in the home until it is sold.

10. Unequal Division of Property

In Ontario, the Family Law Act (FLA) governs the division of family property for married spouses. Generally, marital assets acquired during the marriage are divided equally between the spouses. However, there are exceptions where the court may order an unequal division of property.

When the Court May Order Unequal Division

The court may order an unequal division of property in certain circumstances to ensure a fair and equitable outcome. For instance, if an equal division of property would be unconscionable, the court may intervene to adjust the distribution. This could happen if one spouse has engaged in misconduct, such as hiding or dissipating assets, thereby necessitating compensation for the other spouse. Additionally, significant differences in the spouses’ income-earning capacities can lead the court to order an unequal division to ensure both parties maintain a reasonable standard of living post-separation. These exceptions underscore the court’s commitment to achieving justice and fairness in property division cases.

11. Time Limits and Other Considerations

There are important time limits and factors to consider when dealing with property division in Ontario.

Important Deadlines and Factors

Married spouses must be mindful of the strict deadlines for making a claim for equalization of net family property. Specifically, they must file within two years of the divorce being granted or six years from the date of separation, whichever comes first. Common law spouses, on the other hand, do not have the same property rights as married spouses and must rely on legal principles like unjust enrichment to advance their claims. The court also considers various factors when determining property division, such as the length of the marriage, the income-earning capacities of the spouses, and the best interests of any children involved. These considerations ensure that the division of family property is fair and reflective of each party’s contributions and needs.

12. Getting Legal Advice

It is essential to seek legal advice when dealing with property division in Ontario.

Find a Lawyer

Navigating the complexities of property division requires expert legal guidance. The Law Society of Ontario’s Lawyer Referral Service can connect you with a family law lawyer who offers a free initial consultation of up to 30 minutes. Additionally, you can search for a lawyer on the Law Society of Ontario’s website or seek referrals from friends, family, or other professionals. When selecting a lawyer, consider their experience, expertise, and approach to family law matters to ensure you receive the best possible representation. Seeking legal advice early can help protect your interests and ensure a fair division of assets.

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