PROPERTY DIVISION

The division of net family property takes place after the dissolution of a marriage. The division process is further complicated when the couple has additional properties such as vacation homes and investment properties or valuable collectable items. In these cases, it is essential to seek impartial legal advice. The K Deol Law team in Brampton can help you understand and preserve your rights during this complicated procedure.

Property division and equalization are concerned with all the assets and liabilities accumulated by both partners during the marriage. This is collectively called the net family property. Most assets are subject to equalization, with some exceptions, such as inheritances and gifts. This is a tiring and difficult process as even the smallest disagreements regarding dates of purchase or current value of assets can stall the settlement process.

To determine equalization, the partners must provide each other with a sworn financial statement that lists all assets, liabilities, inheritances, and gifts on the date of marriage, on the valuation date and how much the asset is worth today. In addition, all of the parties’ debts, liabilities, and money owing must be determined for the same dates with supporting documentation.
The matrimonial home is treated differently than all other belongings and assets. If the couple moves into the home together after marriage, regardless of who purchased it or owned it prior to the marriage, both spouses have an equal right to live in the home.

Along with assets, debts are also taken into account during equalization. This includes car loans, mortgages, credit lines and more. If the debt is in both partner’s names, it will be divided; however, if it is only in one partner’s name, it will not be divided but evaluated to determine fair equalization.
In Canada, common law spouses’ rights to property division are different than marriage. In some circumstances, common-law spouses are able to claim assets that they individually brought into the relationship.