Division of Assets
Division of assets in family law refers to the process of dividing property and financial resources between spouses who are ending their relationship. This can occur in the context of a divorce or a separation. When a marriage ends, the couple will need to divide their property, assets, and debts between them.
The Family Law Act (FLA) states that married couples have specific entitlements and rights, whereas common-law partners often do not. The law views division of assets as a process that should be fair and equitable to both parties involved in a separation or divorce. Under family law, assets and property acquired by a couple during their marriage are generally considered to be "family property" and are subject to equal division between the parties upon divorce or separation. Family property can include real estate, investments, pensions, savings, and other assets that were acquired during the marriage and the arrears that were accumulated during that time. Generally this means that the spouse whose net family value is less than the other spouse will be entitled to half of the difference between those two values.
The division of assets involves identifying all assets and liabilities owned by both parties, and then determining how those assets and liabilities should be divided between them. For example, what is the value of the pension on the date of separation? Are there any “excluded property”? (Assets such as a gift, inheritance, or an insurance settlement that may not be subject to equal division) What is the value of the house and how much is the mortgage and/or its Home Equity Line of Credit?
This process can be complex and involve various factors, such as the length of the relationship, the contributions made by each party during the relationship, and the financial needs of each party after the relationship has ended. In our mediation process, we will take you through a step-by-step process, informing you what documents you need to prepare, how these documents will be used, and how equalization payments are calculated. We will work together to reach a long-lasting agreement on your finances.
Overall, the Canadian family law seeks to ensure a fair and equitable distribution of assets between parties, while considering the individual circumstances of each case. In our mediation we work with the goals of fairness and equity in mind for both parties and their family.
