Division of property in a divorce can be a very complex process. In Canada, the laws governing the division of property vary by province and territory. This article will provide a general overview of the process of dividing property in a divorce in Canada, including the laws that govern the process and the factors that are considered when determining a fair division of property.
Determining Marital Property:
The first step in the division of property is to determine what assets and debts are considered “marital property.” This includes any property or debts that were acquired during the marriage, regardless of whose name is on the account. This can include the family home, any other real estate, vehicles, personal possessions, bank accounts, investments, and debts such as mortgages, credit card balances, and loans.
Valuation of Marital Property:
Once the marital property has been identified, the next step is to determine its value. This is typically done by hiring a professional appraiser to value any real estate or other assets, and by reviewing account statements and other financial records to determine the value of bank accounts, investments, and debts.
Division of Marital Property:
Once the value of the marital property has been determined, the next step is to divide it fairly between the two spouses. Canadian laws generally require that the division of property be “equal,” unless there are certain circumstances that would make an equal division unfair. Some of the factors that might be considered when determining whether an equal division is fair include the length of the marriage, the income and earning potential of each spouse, the contributions of each spouse to the marriage and to the acquisition of the marital property, and the needs of any children of the marriage.
Role of the Court:
If the spouses are unable to agree on a division of property, the court will make a decision based on the laws of the province or territory where the divorce is taking place. This can involve a process of negotiation and mediation, and if necessary, a trial. The court will make a decision based on what is considered to be fair and just. If a trial is necessary, the court may assign an expert to assess and value the property in dispute. The divorce process can be complex and should not be attempted without legal advice.
Separate Property:
It’s important to note that the division of property in a divorce is separate from any issues related to child custody and support. The court will consider the best interests of any children of the marriage when making decisions about the division of property, but the focus is on ensuring a fair and equitable division of the marital property.
According to Canadian Law, everything that was acquired during the marriage is considered “marital property” and is subject to division. However, property that was acquired before the marriage or by inheritance or gift during the marriage is considered to be a separate property of the spouse and is not subject to division.
Can Creditors Make You Pay for Your Ex-Spouse’s Debts?
In most cases, creditors cannot make you pay back your ex-spouse’s debts that were incurred during the marriage. However, there are some exceptions to this rule depending on the laws of the province or territory where you live and the specific circumstances of your case.
One exception is if the debts were incurred jointly. For example, if you and your ex-spouse had a joint credit card or loan account, and you both agreed to be responsible for the debt, then the creditor may be able to pursue either of you for repayment.
In addition, if the divorce settlement agreement states that one party is responsible for certain debts, or if the court orders that one party is responsible for certain debts, then the creditor may be able to pursue that party for repayment.
You must seek legal advice if you are concerned about your liability for your ex-spouse’s debts. A lawyer can review your specific situation and advise you on your rights and obligations.
Conclusion:
In conclusion, the division of property in a divorce in Canada is a complex process that involves determining the value of all assets and debts that were accumulated during the marriage and then dividing them fairly between the two spouses.
The laws governing the division of property vary by province and territory, and it is important to seek legal advice to understand your rights and obligations. The process generally starts with identifying what assets and debts are considered marital property, determining their value, and then dividing it fairly based on the laws of the province or territory where the divorce is taking place.
