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Dividing Property, Assets & Debt During Divorce


image of a divorcing couple having a dispute in front of a mediator

Even if your divorce is amicable, the legal issues for married couples who have shared property and assets can turn even the most courteous of divorces into a nightmare. However, a family lawyer can help.

 

Canadian Law


In Canada, the basic laws governing dividing property in the case of divorce are straightforward:

•      whatever property that was yours before the marriage remains yours

•      whatever assets and debts accrued during the marriage are to be split equally between the spouses. This includes interest and other increases in the value of your personal, pre-marriage property.

 

In general, the net value of the couple is to be divided equally among the two people; however, the specific assets may vary, i.e.

            Person one receives vehicles, and

            Person two receives artwork of equal value as the vehicles.

 

Exclusions


There are always exceptions and unique considerations when dividing assets and property during a divorce. These include:

•   inheritances or gifts received by one person from an outside party during the marriage

•   damages and other money received by one spouse for personal injury

•   assets and other exceptions agreed upon in a domestic agreement before, during, or after marriage

 

Contracts & Agreements


If you entered into one or more of the following agreements during your relationship with the person from whom you are divorcing and with whom you are dividing property, individual and independent legal advice is recommended to ensure that the agreements are indeed legal and enforceable.

•   Cohabitation Agreements created before a marriage

•   Marriage Contract created before or during the marriage

•   Separation Agreement created at the end of the relationship

 

The first two agreements can outline how you and your partner will settle your family law issues, including diving property, should you dissolve your relationship in the future. The third agreement is made at the time of separation. When entered into correctly, that is:

  • made in writing

  • signed

  • witnessed

  • made with independent legal advice

the agreements and contracts can only be negotiated, changed, or challenged by going to court. Therefore, it is essential to seek legal advice and assistance.  

 

Common-Law Dissolvement


Divorce may not be a part of separating from a common-law partner; however, if you have shared property and assets, the split can become extra difficult and heated. To help protect your assets, contact a family lawyer with experience ensuring the legal rights of their clients who need to divide property and assets.

 

After Dividing Assets


Once your divorce is final and all your marital assets have been divided, remember to review and update your will to ensure that your last wishes can be honoured.

 

Dividing Property and Assets in Kelowna Divorces


Divorce happens, and at Heritage Law Group, we protect your property rights throughout the process of dividing assets. Call us today to learn more about our separation and divorce services in Kelowna or to book a consultation with a member of our experienced, knowledgeable, and serviceable team. We consider it a privilege to provide you with customized solutions to help you resolve your legal issues.

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