Division of Property During Separation

There are both financial and emotional repercussions when a marriage ends. When a marriage ends, your property, assets, and debts will all have to be divided equally. These laws can vary depending upon the place you live in.

A person signing divorce papers


 

In this article, we'll discuss how property and assets are divided when a couple breaks up in Canada.

Family Patrimony

Family patrimony suggests that the method of division of property and assets relies upon a couple's relationship, for example, civil union, common-law relationship, or marriage.

 

If a married couple separates, each person owning an asset completely before marriage gets that asset back. The property and assets acquired by both during the marriage will have to be equally divided. Inheritance received during the marriage is usually excluded from this division.

 

Basic Rules for Division of Property

According to Canadian law, all debts have to be taken into account, and a net value has to be determined in order to divide all assets and property equally. This entails that the value of the following things will have to be calculated and divided equally into two parts:

· Your home

· Any other properties (for example, a vacation home, a cottage, etc.)

· The furniture inside the home

· Vehicles (cars, trucks, etc.)

· Retirements savings (pension, employer plans, LIRAs, RRSPs, etc.)

· Any joint debt used to purchase or preserve any of the above-mentioned property or asset

 

Not to forget, if any of the above-mentioned property or asset was owned by one of the persons in the relationship prior to marriage, it wouldn't have to be divided.

 

If a person wants to keep a certain asset or property, they'll have to pay the other person their share of the valuation of that certain asset or property. All the assets are valued at their current market price and not the original value at the time of purchase.

Assets Excluded from Division

Some of the assets are not liable to be divided when a marriage ends, and a couple separates. These assets include:

· Income properties

· Bank Accounts

· Bonds

· Businesses

· Jewelry

· Inheritance money and gifts

 

Hire a Divorce Lawyer in Canada

If you are facing any issues with your separation or division of property, consult a legal professional to handle all matters. Nanda & Associate Lawyers provide the most experienced divorce lawyers to help you in your separation. Furthermore, they also provide lawyers for mortgage, personal injury, immigration, and more. Reach out to them today for further details.

 

 

 

Disclaimer: This article is only intended for educational purposes and shouldn't be used as a substitute for legal advice.

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