We are excited to share the benefits of our partnership with Zelos Capital Ltd. with our clients, such as free, fully customized cash flow forecasts from Zelos Capital Ltd. to assist clients with their financial planning needs. Family Law Solutions clients are also eligible to receive investment consultations and portfolio reviews, with no additional charge.
Division Of Family property
Family property division is governed by the Alberta Family Property Act (RSA 2000, c F-4.7) and is applicable to married couples or common-law couples who have resided together for at least 3 years and/or have had a child together.
There is a strong legislative presumption of an equal division of family property, with limited power of the Courts to vary. Family Property includes all assets at their current fair market value, both personal and corporate, minus any liabilities/debts.
FAMILY PROPERTY EXEMPTIONS
Some property owned by a party is considered exempt, meaning that the value is not divided among the parties. For an exemption to be maintained, the original asset or the proceeds of an original asset must be able to be traced directly or indirectly to an existing asset. An exempt asset that has no current value or has been spent on marital living expenses is no longer considered as exempt. Statutory exemptions are defined as follows: Property a spouse owned before the marriage or commencement of a common-law / adult interdependent partnership;inherited property; property that was a gift from a third-party;personal damages resulting from a lawsuit; proceeds of an insurance policy payment that does not relate to property.
INCREASE IN VALUE OF EXEMPT PROPERTY
The increase in value of exempt property during the relationship may be divisible in the court’s discretion as ” just and equitable” considering the overall contributions to the relationship.
TRACING OF EXEMPT ASSETS
The person claiming to retain exempt property has the onus to prove that they can trace directly or indirectly the proceeds from exempt assets to existing assets.
The valuation date of family assets in Alberta is the date of settlement or trial , not the date of separation as in other provinces; however, parties can agree to a different valuation date.
Family law Services
Helpful Information and Resources for Family Property Matters
The Notice to Disclose Application is frequently used in family law to request financial disclosure. This provides your lawyer the opportunity to gain a deeper understanding of both you and your former spouse or adult interdependent partners overall finances to assist in negotiating child and spousal support and property equalization. Once a Notice to Disclose Application, both parties have an ongoing obligation to provide up to date and current financial disclosure until a resolution is reached.
The Schedule A forms part of the parties standard financial disclosure obligations and is provided in the Notice to Disclose Application. This document summarizes a party’s assets and liabilities. As it must be sworn before a Commissioner for Oath in and for the Province of Alberta, it is used in an effort to ensure party’s are forthcoming and transparent when providing their financial disclosure.
A budget is typically requested in the standard Notice to Disclose Application. The attached template provides a comprehensive summary of income and expenses. Often, budgets are used to gain a deeper understanding of each party’s current monthly surplus/deficit to assist with child and spousal support applications.
As there is a presumption that family property will be divided equally, the attached property spreadsheet is often used in family law to calculate a potential equalization amount once financial disclosure has been fully exchanged. It is usually completed by your lawyer and provides a starting point to help facilitate negotiations.