Division of Assets in a Divorce in Canada
If you’re getting a divorce in Canada, you have to divide your assets. This is more difficult than it sounds because there are many factors to consider. This guide will help you learn how to separate property and debts in a way that’s fair for both parties involved.
Who owns what.
The division of assets in a divorce will depend on the type of asset. Some types of assets are considered “family assets” and must be divided equally between you and your spouse, while others (such as gifts) are excluded from the division process.
Family assets include:
- Money and investments
- Property (houses, land)
- Cars, boats and other vehicles
Do you need a lawyer?
If you are married and contemplating divorce, chances are you will need a lawyer to help with the divorce process. While there are self-represented litigants that can handle their own divorce, it is advisable to retain a lawyer as they will be able to navigate the difficult waters of family law. If you cannot afford a lawyer, speak with Legal Aid.
If you are not married but living together in a common-law relationship and considering separating from your partner, then it is advisable that both parties get legal advice from an experienced family law practitioner before making any decisions about how assets should be divided between them. The courts recognize that property rights exist for unmarried couples whose cohabitation has lasted for two years or longer (or if one party has provided caregiving services to children of their partner during this period). However, it may not always be easy for these couples to reach an agreement on dividing up things like pensions and RRSPs without outside help from lawyers who specialize in this area – so again: talk with someone who knows what they’re doing!
Who is responsible for the debts?
If you are the person who has to pay off the debt, you will be held responsible for it. In most cases, this means that you will be paying the debt until it is paid off in full (or until it is sold and paid off).
However, if at some point during the divorce process a court rules that your spouse should have been paying for the debts in question but was not doing so, then it may be possible for your spouse to claim any outstanding payments on those debts as income tax deductions.
How to divide assets.
The division of assets and debts is one of the most important parts of a divorce. It can be difficult to know what to do, especially if you have trouble making decisions on your own. The first step is to separate your assets from your spouse’s. Your lawyer can help with this task, but it will be up to you to decide which items stay with one partner and which belong exclusively with the other.
The next step is determining what should be considered part of both partners’ property during a divorce settlement process. Once again, these are matters best left in the hands of professional legal counsel; however, there are some general guidelines that may apply:
- All assets owned before marriage or acquired during marriage by gift or inheritance (including trust funds) should not be split between partners; they remain entirely under ownership by whoever owns them before or after separation occurs
- All debts incurred prior to separation remain under obligation unless otherwise agreed upon in advance by both parties involved
- Any remaining shared debt must then be divided equally between each party based on their respective incomes from past tax returns
Divorce is a difficult time, and having a divorce lawyer can make it easier.
Divorce is a difficult time, and having a divorce lawyers can make it easier. Divorce lawyers can help you get a fair settlement, division of assets, division of debts, and division of support payments. A good divorce lawyer will help ensure that all parties are treated fairly throughout the process.
Divorce is never easy for anyone involved. It’s important to stay informed about your rights as well as the laws surrounding divorce in Canada so that you can make informed decisions about how your finances should be handled during this difficult time in your life.
Divorce can be a difficult experience, but it doesn’t have to be. With the right lawyer on your side and a good understanding of the process, you could end up much better off than your ex-spouse. This is why we suggest that every person who is going through a divorce should get legal advice.