When couples decide to separate and pursue a divorce, they face numerous decisions that can significantly impact their futures. If children are involved, the spouses must determine how much parenting time each parent will have and how decision-making responsibilities will be shared. Similarly, if the couple owns property, they need to decide who will keep it or whether it will be sold, with proceeds divided between them. In addition to these considerations, divorcing couples in Toronto must also determine how to divide their assets and liabilities fairly.
If you are going through a divorce, the skilled legal team at The Riley Divorce & Family Law Firm can help you resolve disputes regarding the division of both assets and liabilities. Call today to begin working with a trusted division of assets lawyer.
Under the Family Law Act, Toronto courts try to ensure that each party to a divorce receives an equal share of the family’s accumulated wealth. A court would consider the value of all marital assets jointly held by a couple in order to divide them in an equitable manner. Most property acquired, earned, or accumulated during a couple’s marriage would be subject to equitable division between the spouses, unless the parties have an alternate agreement.
Similarly, Toronto courts work to divide marital liabilities fairly. Most debts incurred during the marriage are considered joint responsibilities. As a result, when a couple divorces, those debts are typically divided equitably.
For example, if a couple shares a mortgage on their family home, the mortgage is regarded as a jointly held debt. During a divorce, this debt must be factored into the total value of the couple’s marital property. If the house is sold, the proceeds will first go toward paying off the mortgage, with the remaining balance divided between the spouses. Alternatively, if one spouse keeps the house, the couple must decide how to manage the outstanding mortgage balance and determine responsibility for future payments.
Although most liabilities are considered jointly owned just as with assets, in some circumstances, a Toronto court could agree that a particular debt is not a shared responsibility and thus not subject to equitable division. For example, if one spouse has accumulated a credit card debt for purchasing expensive clothing, their former spouse might be able to argue that the credit card debt should not be a shared responsibility because the extravagant purchases were all for the other spouse’s personal use. Similarly, if one spouse has a gambling addiction, the other spouse might argue that they should not have to take on that liability.
Divorce is a challenging and life-changing process. While you focus on rebuilding your life, you can rely on the dedicated team at The Riley Divorce & Family Law Firm to help you navigate the complex task of dividing assets and liabilities.
Contact the firm today to schedule an initial consultation to discuss division of liabilities in Toronto. Our compassionate and skilled lawyers are available 24 hours a day to support you during this difficult time.
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