Things You Should Know About the Division of Property After Divorce

AJ Law LLP’s Filipino Lawyer in Toronto shares the same goal with Ontario’s divorce legislation. Under the Family Law Act, the law makes sure that spouses end their union on a reasonably equal status. Ontario divorce law provides that both parties must retain an equal amount of what they received during their marriage. This is referred to as the Net Family Property (NFP).

How is the Division of Property and Assets Affected

After the initial division of all things under the spouse’s joint name, it must then be decided what assets were brought by each party into the marriage as there is a certain “married deduction date” for these properties. The property typically remains with the party that brought them into the marriage, unless otherwise negotiated. This treatment is also applicable to any inheritance or substantial gifts that one party has received, as long as they have been held separate and in the name of that party alone.

It is important to remember that not all estimates of net family property are equal. There are some situations that come into play, such as short-term marriages, in which the court can deviate from an equal division. A marriage of short duration is described by the courts in Ontario as one which is less than five years.

How is the Division of Property and Assets Affected

After the initial division of all things under the spouse’s joint name, it must then be decided what assets were brought by each party into the marriage as there is a certain “married deduction date” for these properties. The property typically remains with the party that brought them into the marriage, unless otherwise negotiated. This treatment is also applicable to any inheritance or substantial gifts that one party has received, as long as they have been held separate and in the name of that party alone.

It is important to remember that not all estimates of net family property are equal. There are some situations that come into play, such as short-term marriages, in which the court can deviate from an equal division. A marriage of short duration is described by the courts in Ontario as one which is less than five years.

How Pension is Treated

Another asset that needs to be worked out and included in the calculation of NFP is pension. The pension administrator may assist in the splitting of these funds within the pension itself or the values will form part of the above-mentioned equalization process. In certain situations, to assess the true values, an actuary and/or accountant can need to be involved.

Division of Assets for Married Couples

The division of assets is based on the Family Law Act for married couples. According to the law, the assets brought into a marriage would remain with the individual to whom they belong to, but any increase in value should be split between the separating people. The exception to this is when a gift, such as an inheritance, is obtained by someone over the course of the marriage, and this property does not count against an increase in assets by someone.

What Happens to the Assets if You are not Married?

For common-law couples, there is no provision to divide assets over the course of the partnership based on the increase in value of the assets of each spouse. In addition to any properties that someone has brought into the partnership, they can also hold any property gained during this period. However, an exception to this principle is when a couple has a joint debt or both persons have their name on a piece of land. It is therefore recommended that individuals keep track of their receipts and ownership documents for this purpose.

How Pension is Treated

Another asset that needs to be worked out and included in the calculation of NFP is pension. The pension administrator may assist in the splitting of these funds within the pension itself or the values will form part of the above-mentioned equalization process. In certain situations, to assess the true values, an actuary and/or accountant can need to be involved.

Division of Assets for Married Couples

The division of assets is based on the Family Law Act for married couples. According to the law, the assets brought into a marriage would remain with the individual to whom they belong to, but any increase in value should be split between the separating people. The exception to this is when a gift, such as an inheritance, is obtained by someone over the course of the marriage, and this property does not count against an increase in assets by someone.

What Happens to the Assets if You are not Married?

For common-law couples, there is no provision to divide assets over the course of the partnership based on the increase in value of the assets of each spouse. In addition to any properties that someone has brought into the partnership, they can also hold any property gained during this period. However, an exception to this principle is when a couple has a joint debt or both persons have their name on a piece of land. It is therefore recommended that individuals keep track of their receipts and ownership documents for this purpose.

How Debts are Treated

Some individuals aren’t good at handling capital. They might be impulsive shoppers, or they might just be unable to keep track of whether they spend more than they earn each month. During the divorce proceedings, the overall debt owned by the married couple will be split in a manner that is equitable to both parties. This does not necessarily mean that the debt would be fairly distributed. If a party can offer proof or an explanation about how his or her spouse was responsible for increasing the debt without supporting the relationship, the split will commonly not be 50/50.

How Debts are Treated

Some individuals aren’t good at handling capital. They might be impulsive shoppers, or they might just be unable to keep track of whether they spend more than they earn each month. During the divorce proceedings, the overall debt owned by the married couple will be split in a manner that is equitable to both parties. This does not necessarily mean that the debt would be fairly distributed. If a party can offer proof or an explanation about how his or her spouse was responsible for increasing the debt without supporting the relationship, the split will commonly not be 50/50.

We Can Help

The divorce law can be very confusing and you can only be told so much through data from the internet. Before any further legal action occurs, it is necessary to consult a lawyer. To speak with our Filipino Lawyer, contact us at +1 (416) 409-5991 or via email at info@ajlawpartner.ca . Our Filipino Family Lawyer in Toronto is experienced with this kind of cases and you are welcome to get the help you need for you to obtain what you deserve regarding this matter.

We Can Help

The divorce law can be very confusing and you can only be told so much through data from the internet. Before any further legal action occurs, it is necessary to consult a lawyer. To speak with our Filipino Lawyer, contact us at +1 (416) 409-5991 or via email at info@ajlawpartner.ca . Our Filipino Family Lawyer in Toronto is experienced with this kind of cases and you are welcome to get the help you need for you to obtain what you deserve regarding this matter.