Division of Family Property

and Spousal Support

Family Law (Civil Law)
Grounds for Divorce
In Canada, there are only three grounds
for legal divorce.

1. A minimum of one year legal
separation.

2. Adultery

3. Cruelty
Dividing Family Property
Provincial and Territorial statues deal with
the division of property following divorce.

Statutes recognize marriage as an
economic partnership to which spouses
contribute equally.
The Family Law Act, 1986
In Ontario, legally married spouses are
now entitled to share the value of
everything acquired during a marriage.

Common-law partners do not have the
same automatic division of property rights.
Calculating Family Property and
Equalization Payments

Legislation doesnt divide property; only
the value of that property.

Complicated process, and usually requires
couples to seek legal advice.
Steps in Calculating Payments
1. List and calculate the value of your assets
on the date of separation.

2. Subtract value of inheritances, gifts,
personal injury awards, and life-insurance
proceeds.

3. Subtract your total debts on date of
separation to provide a total property value
on that date.
Steps in Calculating Payments
contd
4. List and calculate the value of your
assets, less debts, on the date of
marriage.

After the couple totals their individual
property values, the spouse with the
greater value of property gives the other
spouse an equalization payment.
The Matrimonial Home
Generally the most valuable asset.

Only applies to married couples.

Must be located in the province.

On separation, one spouse may be granted
exclusive possession for a certain period.

The Matrimonial Home contd
This option is used most often when one
spouse has custody of the children and
wants to remain in the home until they have
finished the school year.

At the end of the exclusive occupancy order,
the home must be divided. i.e. sold, or one
spouse may buy out the other spouse.
Exemption from Equal Division
Rule
Situations when equal division is unfair include:

1. Length of Marriage not married long and
one spouse brought a lot more into the
marriage than the other.

2. Length of Separation long separation and
both parties have now bought items for
separate dwellings; so it is unfair to divide
those items.
Exemption from Equal Division
Rule contd
3. Date when an Asset was acquired one
spouse bought an expensive item the day
before the separation and they wish to
keep the asset.

4. Gifts and Inheritances If one spouse
receives inheritance during marriage, it
could be excluded from equal division.
Spousal Support
Money paid by one spouse to another
after the divorce is to compensate one
spouse for any financial losses suffered as
a result of marriage breakdown until the
spouse can gain self-sufficiency.
Factors Affecting Support
Assets and financial status of each spouse
including past and present earnings.

Ability of each spouse to be self-supporting.

Ability of each spouse to provide support to
the other spouse.

Age, physical and mental health

Factors Affecting Support contd
Length of time married

Length of time required by the spouse in
order to upgrade skills

Length of time one spouse spent at home
raising the family instead of contributing
financially by working outside the home.
Factors Affecting Support contd
Either party can order increased, decreased,
or stopped support if circumstances change
(i.e. Change in salary, remarriage, and
unemployment)

When a second marriage results in a blended
family, obligations to the first family have
some priority over obligations to the second
marriage.
Enforcement of Support Orders
Enforcement of support orders start as
goodwill.

This can be escalated to provincial
enforcement;

And, if need be, it can be escalated to
federal enforcement.
Provincial Enforcement
Legislation passed to make it easier to
collect payments from defaulting spouses.

Designed to reduce child poverty and
need for social assistance.
Ontario Family Responsibility
Officer (FRO)
(1992) first automatic wage deduction
program

Wages deducted and forwarded to FRO and
deposited into recipient spouses bank
account

If support is not being paid, FRO acts legally
to collect money that is owed.
Ontario Family Responsibility
Officer (FRO)


The FRO now has a website of deadbeat
parents


Federal Enforcement
Allows federal government to assist in enforcement
process by:

(1) Tracking down people who have defaulted.

(2) Deduction of certain federal monies payable to
debtors

(3) Refusing to issue important documents (i.e.
Passports, income-tax refunds, Canada Pension Plan
payments)
Homework
Read pg. 416-427

Answer Questions 1, 3-8, 10 & 11 on pg. 427-428