When married spouses separate, the Family Law Act determines how property is handled. Generally, if there is property involved, equalization of net family property will need to take place. This means that when spouses separate, the spouse with the lesser net family property will receive a payment from the other spouse. They will receive one-half the difference between their net family property and the net family property of their spouse.
For example, if Spouse A has a net family property of $400,000 and Spouse B has a net family property of $600,000, then Spouse A will receive an additional $100,000 payable by Spouse B. To determine your net family property, we will complete detailed financial statements, as will your ex-spouse. Your net family property may include:
- The matrimonial home
- Other properties, such as a rental home or a cottage
- Bank accounts
- Debts such as a mortgage, credit card debt, line of credit
There are several other considerations when it comes to property issues, determining your net family property and the appropriate equalization payment.
Common law spouses may also have property considerations when they separate. You may own property, such as a home with your common law spouse. Perhaps you provided your spouse with a large downpayment for their home. You may wish to know if you have any entitlement.
Emily and Patrick have over a decade of combined experience resolving property issues. Often, these issues can be resolved through skilled negotiation and a clear picture of each spouse’s financial information.