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Difference between revisions of "Agreements after Separation"
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===The division of property and debt=== | ===The division of property and debt=== | ||
The ways that a separation agreement can deal with the division of family property and family debt are virtually unlimited. Under the ''[[Family Law Act]]'', each spouse is presumed to keep the property they brought into the relationship and share in the property bought during the relationship. The spouses are presumed to be | The ways that a separation agreement can deal with the division of family property and family debt are virtually unlimited. Under the ''[[Family Law Act]]'', each spouse is presumed to keep the property they brought into the relationship and share in the property bought during the relationship. The spouses are presumed to each be half responsible for any debt incurred during the relationship. However, you can make whatever other arrangements you want, as long as you both agree to those arrangements and they're reasonably fair. | ||
When the division of property and debt are issues, it's often helpful to exchange Financial Statements. A Financial Statement, Form F8 of the [http://canlii.ca/t/8mcr Supreme Court Family Rules], is a helpful court form in which each party describes their income, assets, expenses and debts on oath or affirmation, like an affidavit. This form can be very useful for each spouse to get a clear idea of the family's financial situation before negotiations start. You can find links to and examples of a Financial Statement and other forms in [[Sample Supreme Court Forms (Family Law)|Supreme Court Forms & Examples]]. | When the division of property and debt are issues, it's often helpful to exchange Financial Statements. A Financial Statement, Form F8 of the [http://canlii.ca/t/8mcr Supreme Court Family Rules], is a helpful court form in which each party describes their income, assets, expenses, and debts on oath or affirmation, like an affidavit. This form can be very useful for each spouse to get a clear idea of the family's financial situation before negotiations start. You can find links to and examples of a Financial Statement and other forms in [[Sample Supreme Court Forms (Family Law)|Supreme Court Forms & Examples]]. | ||
A separation agreement should talk about how debts will be managed. Separating couples typically pay out family debts by the sale of a shared asset where there's not enough cash to pay it out, which is usually how the mortgage on the family home gets paid out, or they can allocate a different share of the family property to compensate for a family debt that can't be paid out. When a debt won't be paid out, it's essential to do two things: allocate responsibility for the debt; and, provide that the party remaining responsible for the debt will protect the party from having to repay the debt. | A separation agreement should talk about how debts will be managed. Separating couples typically pay out family debts by the sale of a shared asset where there's not enough cash to pay it out, which is usually how the mortgage on the family home gets paid out, or they can allocate a different share of the family property to compensate for a family debt that can't be paid out. When a debt won't be paid out, it's essential to do two things: allocate responsibility for the debt; and, provide that the party remaining responsible for the debt will protect the party from having to repay the debt. | ||