When you get divorced, your family undergoes a great deal of changes. If you have children, you might need to split parenting time and figure out whether one parent owes the other parent child support. You also need to figure out how to split the assets that you have accumulated or earned during the course of the marriage. Determining an equitable distribution in Toronto of marital assets can be complicated. Working with a knowledgeable and skilled legal team is the best way to ensure you walk away from the divorce with your rightful share of assets.
Under the Family Law Act, the province of Ontario recognizes that married couples have equal position to each other and that marriages are partnerships. When that partnership breaks down and a couple decides to divorce in Toronto, a court needs to help the divorcing couple settle their affairs and distribute their assets in an orderly and equitable manner. Regardless of which spouse actually earned, acquired, or accumulated each particular asset, when a couple divorces, both spouses are entitled to receive an equal share of the family’s net family property that accrued during the marriage.
The Family Law Act is not necessarily binding. Instead, it operates as a guideline for couples. However, divorcing couples do not need to adhere to the Family Law Act when they divide their property. Couples can make an alternative arrangement in a separation agreement or in a prenuptial agreement.
A knowledgeable local lawyer could help you determine how the Family Law Act might apply to the distribution of your family’s assets and also how to devise an alternative agreement that might better suit your needs. With their skills and deep understanding of property valuation and tax considerations, they could help you pursue a resolution that respects your rights and interests.
In an effort to ensure equitable distribution and equalization in divorce proceedings, Toronto courts look at the net family property of each spouse, as defined and outlined in the Family Law Act.
If one spouse owns a property or asset before their marriage, then that asset is not part of their net family property and is typically excluded from calculations when distributing property equitably. In addition, if one spouse receives property in solely their name in a gift or inheritance, that property is also not usually subject to equitable distribution.
However, if both spouses maintained and cared for the property and contributed to its upkeep, such as by paying for repairs, then that property might no longer be considered separate and could be included in with other marital assets.
Net family property (NFP) refers to the growth or deterioration in value of each spouse’s assets during the course of a marriage. Under the Family Law Act, if one spouse has a higher net family property (NFP) than the other, they must make an equalization payment. This payment is the difference between their NFPs, ensuring that both spouses receive fair and balanced shares of their assets.
Trying to understand net family property and other equitable distribution issues can be complicated, which is why working with a seasoned local lawyer is critical.
Determining an equitable distribution in Toronto divorce cases is not easy. Complex issues of property valuation and tax considerations play a large role, which is why you should consult with a well-versed legal team.
Meet with a lawyer from The Riley Divorce & Family Law Firm today who could help you move forward through the divorce process and save yourself money along the way.
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