Most people know that divorcing requires dividing your assets, but you might need more clarity regarding which assets you must split. Some of your assets might not count toward your net family property.
Understanding the types of assets in Toronto that you will need to value when getting divorced is essential. Seeking help from the tenacious property division lawyers at The Riley Divorce & Family Law Firm is crucial. The team could help you identify your family property and obtain an accurate value for a favorable property settlement.
When you get married, almost everything you own is your personal property. You do not have to divide your personal property at divorce, but it will factor into the net family property calculation because your net worth at the date of marriage is critical to that determination.
If one of you owns a home on the date of marriage and uses it as your marital home, the non-titled spouse acquires an equal interest in the property. If the owner sells it and uses the proceeds to purchase a matrimonial home, the other spouse likewise gains an interest in that property. However, if you own a property on your marriage date and keep it as an investment but do not live in it as a couple, it will remain your personal property.
Everything you or your spouse acquires after you get married is family property, regardless of how it is titled and who paid for it. That includes real estate, pensions, RRSPs, personal property like furniture and jewelry, vehicles, ownership in a business, and intellectual property like patents and the rights to music, film, and publications. A Toronto legal professional could help you determine how to identify, catalog, and value your family property assets.
The Ontario Family Law Act § 4(2) excludes specific property from family property. When you divorce, you retain the exclusive rights to benefit from excluded property.
When you acquire any of the following property types after marriage, it will remain yours exclusively, and its benefits need not be shared with your spouse. Anything purchased with the proceeds of excluded property is likewise personal property and not family property. A Toronto lawyer could help you prove that particular property you own should be excluded from the marital property.
Proceeds from a lawsuit representing the portion of the damages paid or owed to compensate for personal injuries, loss of companionship or guidance, and mental shock belong solely to the person bringing the claim in the lawsuit.
Any property inherited by a spouse after marriage is theirs alone unless they used the property as a matrimonial home or used inherited funds to buy a matrimonial home. If the donor specified that the inheritance and the income it generates was for the beneficiary alone, then the spouse has no right to share. However, if the benefactor did not expressly state in a testamentary document that the spouse cannot share in the income the inheritance generates, the income an inheritance generates is family property.
When a spouse is the beneficiary of a life insurance policy, the other spouse has no claim on the beneficiary’s payout.
Many couples believe that the asset distribution laws in place would not produce a fair result if applied to their specific circumstances. Marriage contracts and separation agreements can alter these couples’ statutory scheme for asset division.
When you enter into a prenuptial or postnuptial contract, you can segregate any assets you choose from the family property, provided your spouse agrees. You can also retain appreciation for segregated assets, limit or waive spousal support, and designate property for children from a prior relationship. Separation agreements can also deviate from the equalization scheme outlined in the law. However, waiting until separation means the poorer spouse has little incentive to agree to less than the law provides.
A seasoned Toronto lawyer could help you draft a marriage agreement or review one your spouse’s lawyer drafted regarding any assets. A sound prenuptial or postnuptial agreement can significantly ease the stress and expense of asset division during a divorce.
Ontario’s asset distribution scheme seems simple, but its execution can be complex. You need the advice and support of a lawyer with deep legal knowledge and financial insight regarding the types of assets in Toronto.
The Riley Divorce & Family Law Firm offers full legal services for couples considering and pursuing divorce. Contact the firm anytime to discuss your circumstances and how we can help during a consultation.
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