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

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Once you've decided that your relationship can't continue, and you're sure that it can't continue, you need to separate. This doesn't mean that you and your spouse need to move into separate homes, but you need to announce your <span class="noglossary">decision</span> and you should probably do it in writing so that you have a record of the date of separation.
Once you've decided that your relationship can't continue, and you're sure that it can't continue, you need to separate. This doesn't mean that you and your spouse need to move into separate homes, but you need to announce your <span class="noglossary">decision</span> and you should probably do it in writing so that you have a record of the date of separation.


Under s. 81(b) of the provincial ''[[Family Law Act]]'', when separation happens each spouse takes a one-half interest in all family property as tenants in common, regardless of how the property was owned before separation, and becomes responsible for one-half of all family debt. It can be critical to protect your share of the family property from creditors, your spouse's bankruptcy, or court orders made in other court proceedings.
If you own your home in joint tenancy with your former spouse, there is no reason to sever the joint tenancy in order to protect your interest in the home. The reason for that is because under s. 81(b) of the provincial ''[[Family Law Act]]'', when separation happens each spouse takes a one-half interest in all family property as tenants in common, regardless of how the property was owned before separation, and becomes responsible for one-half of all family debt.


While it's always a good idea to consult with a lawyer if you have a family law problem, be especially sure to do so if you're not certain whether separating would be helpful or harmful.
It can be critical to protect your share of the family property from creditors, your spouse's bankruptcy, or court orders made in other court proceedings. While it's always a good idea to consult with a lawyer if you have a family law problem, be especially sure to do so if you're not certain whether separating would be helpful or harmful.


There are only a few times when a separation is a bad idea, usually when the effect of separation will limit a claim to one-half of the family property when there's a good chance that it might be more. Say, for example, that a spouse is in poor health and dying when the parties separate. The effect of separation may mean that a surviving spouse will get no more than half of the deceased spouse's estate when the spouse might have received more than half as a surviving spouse or a surviving joint tenant.
There are only a few times when a separation is a bad idea, usually when the effect of separation will limit a claim to one-half of the family property when there's a good chance that it might be more. Say, for example, that a spouse is in poor health and dying when the parties separate. The effect of separation may mean that a surviving spouse will get no more than half of the deceased spouse's estate when the spouse might have received more than half as a surviving spouse or a surviving joint tenant.
It is also good idea that upon separation, you take steps to revise your will to ensure that your former spouse is not the recipient of a gift from your estate that you no longer want them to receive. You should also change your life insurance beneficiary for the same reason, unless your former spouse is an irrevocable beneficiary under the terms of the policy. Lastly, you may want to consider opening a new Registered Retirement Savings Plan (RRSP) account for any contributions you want to make post separation. However, be sure not to cash in any existing RRSPs without at least informing your former spouse in advance, or upon obtaining the advice of a lawyer, as your former spouse may have a claim to the funds contained in those RRSPs. Otherwise, your former spouse may accuse you of dissipating family assets and the last thing you need at this stage of your separation is a court order freezing your financial assets.


===Register your interest in property===
===Register your interest in property===