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Difference between revisions of "Basic Principles of Property and Debt in Family Law"
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Basic Principles of Property and Debt in Family Law (view source)
Revision as of 19:01, 27 June 2019
, 19:01, 27 June 2019→Excluded property
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Perhaps most importantly, under s. 85(1)(g), excluded property includes property bought during the relationship with excluded property. Say, for example, that a spouse receives an inheritance of $10,000 and buys a collection of vintage Pyrex. The Pyrex collection would be that spouse's excluded property because it was bought with excluded property, even if the Pyrex collection was used in the day-to-day course of the couple's life together. Remember, whether something was "ordinarily used for a family purpose" is not a consideration under the ''Family Law Act''. | Perhaps most importantly, under s. 85(1)(g), excluded property includes property bought during the relationship with excluded property. Say, for example, that a spouse receives an inheritance of $10,000 and buys a collection of vintage Pyrex. The Pyrex collection would be that spouse's excluded property because it was bought with excluded property, even if the Pyrex collection was used in the day-to-day course of the couple's life together. Remember, whether something was "ordinarily used for a family purpose" is not a consideration under the ''Family Law Act''. | ||
However, where a married person puts what would be excluded property in the name of the other spouse, it may be that the excluded property becomes family property. Similarly, where a parent gives money or property during the relationship it is open to the son-in-law or daughter-in-law, or the common law spouse, to argue that it was a gift to the couple and is not excluded property. The law in this area is in flux (as there are currently two lines of authority)so it is difficult to give a definitive answer to what law applies. Even lawyers find this area of law difficult so do not be upset if you are confused about this area of law. | However, where a married person puts what would be excluded property in the name of the other spouse, it may be that the excluded property becomes family property. Similarly, where a parent gives money or property during the relationship, it is open to the son-in-law or daughter-in-law, or the common law spouse, to argue that it was a gift to the couple and is not excluded property. The law in this area is in flux (as there are currently two lines of authority), so it is difficult to give a definitive answer as to what law applies. Even lawyers find this area of law difficult, so do not be upset if you are confused about this area of law. | ||
====Taking stock at the beginning of a relationship==== | ====Taking stock at the beginning of a relationship==== | ||
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First, gather the documents listed below for the period that spans the date on which you and your spouse began to live together or got married, whichever is earlier: | First, gather the documents listed below for the period that spans the date on which you and your spouse began to live together or got married, whichever is earlier: | ||
*statements for all financial accounts, including savings accounts, investment accounts, RRSP accounts and other retirement savings accounts, | *statements for all financial accounts, including savings accounts, investment accounts, RRSP accounts, and other retirement savings accounts, | ||
*statements for any workplace pension plans, | *statements for any workplace pension plans, | ||
*statements for all credit accounts, including credit cards, loans, mortgages and lines of credit, | *statements for all credit accounts, including credit cards, loans, mortgages, and lines of credit, | ||
*your personal income tax return, complete with all of the schedules and attachments, | *your personal income tax return, complete with all of the schedules and attachments, | ||
*your BC Assessments for all real property, or, if you want to be more accurate than that, proper appraisals, | *your BC Assessments for all real property, or, if you want to be more accurate than that, proper appraisals, | ||
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It's also important that you keep track of new excluded property acquired during your relationship, and what's going on with the excluded property you brought into the relationship. It may be easiest to keep a journal that: | It's also important that you keep track of new excluded property acquired during your relationship, and what's going on with the excluded property you brought into the relationship. It may be easiest to keep a journal that: | ||
*shows the dates and amounts of any inheritances, gifts, court awards and insurance proceeds received during the relationship, | *shows the dates and amounts of any inheritances, gifts, court awards, and insurance proceeds received during the relationship, | ||
*tracks money received from the sale of excluded property, and what you did with the money, particularly if the money was pooled with your spouse's money to buy something, | *tracks money received from the sale of excluded property, and what you did with the money, particularly if the money was pooled with your spouse's money to buy something, | ||
*with respect to gifts, keep documents evidencing the intention of the donor (i.e. a letter or card from the donor parent confirming that the gift of $100,000 was to you and not to you and your spouse), | *with respect to gifts, keep documents evidencing the intention of the donor (i.e. a letter or card from the donor parent confirming that the gift of $100,000 was to you and not to you and your spouse), | ||
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*records any changes in the value of excluded property during the relationship. | *records any changes in the value of excluded property during the relationship. | ||
Remember, under s. 85(2) it's up to the person claiming the property is excluded property to prove it. | Remember, under s. 85(2) it's up to the person claiming that the property is excluded property to prove it. | ||
==Who got what under the ''Family Relations Act''== | ==Who got what under the ''Family Relations Act''== | ||