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Difference between revisions of "Family Law Act Basics"
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→The law about dividing property and debt
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===When do claims for the division of property and debt have to be made?=== | ===When do claims for the division of property and debt have to be made?=== | ||
Under the '' | Under the ''Family Law Act'': | ||
*married spouses have to start a court proceeding to divide property and debt within two years of the date of their divorce or the annulment of their marriage, and | *married spouses have to start a court proceeding to divide property and debt within two years of the date of their divorce or the annulment of their marriage, and | ||
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===What is family property?=== | ===What is family property?=== | ||
''Family property'' is the property either or both spouses got after the date they began to live together or got married, whichever was first. ("Ordinary use for a family purpose," the test under the old ''Family Relations Act'', the law before the '' | ''Family property'' is the property either or both spouses got after the date they began to live together or got married, whichever was first. ("Ordinary use for a family purpose," the test under the old ''Family Relations Act'', the law before the ''Family Law Act'', doesn’t matter under the new law.) Family property includes: | ||
*real estate, | *real estate, | ||
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*other personal property. | *other personal property. | ||
Most importantly, family property also includes the increase in value of excluded property | Most importantly, family property also includes the increase in value of excluded property during of the spouses’ relationship, beginning either at the date the spouses began to live together or the date of their marriage, whichever is first. | ||
Remember that excluded property includes property bought during the relationship with excluded property, as long as you can trace the old excluded property into the new property. | Remember that excluded property includes property bought during the relationship with excluded property, as long as you can trace the old excluded property into the new property. | ||
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Spouses can make agreements and the court can make orders about how property and debt should be divided. Only the Supreme Court can make orders about the division of property and debt. | Spouses can make agreements and the court can make orders about how property and debt should be divided. Only the Supreme Court can make orders about the division of property and debt. | ||
Note that agreements and orders about debt made under the '' | Note that agreements and orders about debt made under the ''Family Law Act'' are only binding between spouses, and don’t affect the rights of creditors or the steps they can take to collect on a debt. | ||
====Family property and family debt==== | ====Family property and family debt==== | ||
Under the '' | Under the ''Family Law Act'', spouses are presumed to: | ||
*each be entitled to one-half of family property, regardless of how they contributed to or used the property, and | *each be entitled to one-half of family property, regardless of how they contributed to or used the property, and | ||
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====RRSP accounts==== | ====RRSP accounts==== | ||
RRSPs are family property. If RRSPs are divided, the federal ''[http://canlii.ca/t/7vb7 Income Tax Act]'' allows them to be equalized without any taxes being paid. | RRSPs are family property. If RRSPs are divided, the federal ''[http://canlii.ca/t/7vb7 Income Tax Act]'' allows them to be equalized between spouses without any taxes being paid. | ||
====Workplace pensions==== | ====Workplace pensions==== | ||
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===How is foreign property divided?=== | ===How is foreign property divided?=== | ||
Under the '' | Under the ''Family Law Act'', the court can make orders about family property that is located outside of British Columbia, including about the: | ||
*safekeeping of the property, | *safekeeping of the property, | ||
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===What about children’s property?=== | ===What about children’s property?=== | ||
Children sometimes get large amounts of money or property from inheritances, insurance policies, or court awards. Under the '' | Children sometimes get large amounts of money or property from inheritances, insurance policies, or court awards. Under the ''Family Law Act'', a child’s guardians are not automatically the trustees of the child’s property, except for property with a value of less than $10,000. | ||
A guardian may apply to court to be appointed as trustee for the child’s property. Only the Supreme Court can make orders about children’s property. | A guardian may apply to court to be appointed as trustee for the child’s property. Only the Supreme Court can make orders about children’s property. | ||
