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Difference between revisions of "Dividing Property and Debt in Family Law Matters"

From Clicklaw Wikibooks
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====Dividing property and debt unequally====
====Dividing property and debt unequally====


Under s. 95(1) of the ''[[Family Law Act]]'', the court may divide family property or family debt unequally, but only if an equal division would be "significantly unfair." It's hard to say what "significantly unfair" means, because the ''[[Divorce Act]]'' doesn't use this phrase and the old ''Family Relations Act'' only talked about things that are just ''unfair'' and things that are ''grossly unfair''. It seems reasonable to assume that under the new ''[[Family Law Act]]'', something that is "significantly unfair" is ''more unfair'' than something which is just "unfair" yet is ''less unfair'' than something that is "grossly unfair."
Under s. 95(1) of the ''[[Family Law Act]]'', the court may divide family property or family debt unequally, but ''only'' if an equal division would be "significantly unfair." Recent court decisions explain that the unfairness must be "compelling or meaningful" in the context of the factors mentioned in s. 95(2)(a)-(i).  A  judge can only order an unequal division of family property where the result of equal division would be so unfair as to be unjust or unreasonable.


Section 95(2) provides a list of factors that the court may take into <span class="noglossary">account</span> in deciding whether an equal division of property and debt would be significantly unfair:
Section 95(2) provides a list of factors that the court may take into <span class="noglossary">account</span> in deciding whether an equal division of property and debt would be significantly unfair:
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<blockquote><blockquote><tt>(h) a tax liability that may be incurred by a spouse as a result of a transfer or sale of property or as a result of an order;</tt></blockquote></blockquote>
<blockquote><blockquote><tt>(h) a tax liability that may be incurred by a spouse as a result of a transfer or sale of property or as a result of an order;</tt></blockquote></blockquote>
<blockquote><blockquote><tt>(i) any other factor, other than the consideration referred to in subsection (3), that may lead to significant unfairness.</tt></blockquote></blockquote>
<blockquote><blockquote><tt>(i) any other factor, other than the consideration referred to in subsection (3), that may lead to significant unfairness.</tt></blockquote></blockquote>
In some cases judges find that the ''unequal contribution'' of one person, along with other factors, warrants unequal division. In other cases, ''unequal contribution'' was not enough to establish "significant unfairness."


Under s. 95(3), the court can also take into <span class="noglossary">account</span> issues relating to spousal support in deciding whether to divide family property and family debt unequally:
Under s. 95(3), the court can also take into <span class="noglossary">account</span> issues relating to spousal support in deciding whether to divide family property and family debt unequally: