Division Of Assets And Real Estate After Separation
DIVISION OF ASSETS AND REAL ESTATE AFTER SEPARATION
When a relationship ends, it is important to divide property in a fair way. In Ontario, there is a law called the Family Law Act that sets out how property should be divided for married couples. It is called the "Equalization of Net Family Property." However, if you are not married or in a common-law partnership, this automatic equalization does not apply. In these cases, property claims are made based on different rules.
At Drake Law, we understand that every family is unique, whether you are married or not. Our team of family law lawyers has the knowledge and expertise in financial matters to create customized solutions that will help you secure a successful financial future. We can handle various ways to resolve disputes, including going to court if necessary. With our background in real estate and financial services, we are well-prepared to navigate any level of complexity that may arise.
Achieving Fair Share: Equalizing Family Assets
When a marriage comes to an end, the Family Law Act mandates a process called equalization of net family property. This process ensures that the overall value accumulated during the marriage is fairly distributed between both spouses. It recognizes the contributions made by each spouse to the marriage, irrespective of legal ownership. If one spouse has accumulated more net family property than the other, a payment known as an equalization payment is owed to achieve a balanced outcome.
The First Steps in Dividing Assets
The journey of property division begins with a crucial step: determining the worth of assets and liabilities both at the time of marriage and at the time of separation. The date of separation signifies the moment when one or both spouses make the decision to bring an end to their marriage or relationship.
Managing and Dividing Assets
There are additional factors to consider, particularly in relation to certain assets acquired during the marriage. These assets may originate from external sources, such as gifts from third parties, inheritances, lawsuit proceeds, or insurance payouts. It is important to understand that these assets may be treated differently within the equalization process, as they hold distinct significance.
Dividing Property After Separation
In the realm of property division, complexities can arise when a couple's portfolio includes investment properties, pensions, retirement accounts, stock options, trust interests, and corporate assets. We recognize the intricate nature of these financial matters, and our team of experienced lawyers possesses a deep understanding of the information required to accurately assess the value of such assets. Moreover, we are well-versed in the accompanying tax considerations that arise in these matters.
Building Trust: Ensuring Fairness for Common Law Partners
When common-law partners make the difficult decision to separate and divide their assets, they do not fall under the same automatic property regime as married spouses. The equalization of net family property does not automatically apply to them. Instead, in certain situations, common-law spouses may need to pursue "trust claims" to obtain a fair share of the other partner's property. These claims are based on the principles of unjust enrichment or the contributions made towards acquiring, preserving, or maintaining the property.
Transparency Matters: The Power of Financial Disclosure
When it comes to resolving financial matters, whether through court proceedings or negotiation, the law places great emphasis on complete and comprehensive financial disclosure from both spouses. This requirement serves as a cornerstone for effectively addressing property and support issues. In the equalization of net family property, it is crucial that both parties provide a transparent account of the value of all assets and debts at the dates of marriage and separation.
However, the process of valuing assets and debts is often more intricate than meets the eye. In cases where there is a suspicion of misrepresentation or concealment of assets, a thorough investigation becomes imperative. Contracts that are based on misleading financial information may be subject to challenge in court. Conversely, contracts that are thoughtfully drafted and grounded in full disclosure are more likely to be upheld and respected.
The Drake Difference Trust the Drake Law Family Lawyers when Dividing Assets and Real Estate
Navigating the complexities of property division and real estate requires a keen understanding of the unique circumstances and legal frameworks involved. At Drake Law, our dedicated team of lawyers possesses the expertise and knowledge needed to guide you through this intricate process. From valuing diverse assets to addressing trust claims and promoting financial transparency, we strive to build trust and achieve balanced outcomes for our clients.