Division of Property
Division of property refers to the process of dividing assets and liabilities between two spouses following a separation or divorce. This includes all of the assets and debts that have been acquired during the marriage, such as bank accounts, real estate, vehicles, investments, pensions, and other financial items.
In Ontario, when one spouse files for divorce they must disclose all of their assets and liabilities in order to ensure fairness when it comes time to divide the property. This process can be complicated and it is often wise to seek legal advice from a family lawyer in Toronto.
Generally speaking, courts strive for an equal split of marital assets between both parties but may also consider other factors such as individual contributions to property or length of time together if an agreement cannot be reached by either spouse. In some cases, certain items such as gifts received exclusively or business interests remain separate from marital property.
Division of Property in Ontario
When it comes to the division of property in Ontario, there are several important things to keep in mind. Most importantly, all married or common-law couples in Ontario must divide their property when they separate or divorce. This includes the assets and debts that each partner has acquired during the relationship.
Both parties must disclose all of their assets and debts to ensure fairness when dividing the property. This disclosure can include bank statements, wills, insurance policies, investments, pension plans and tax returns.
The only exceptions to this rule are gifts and inheritances given exclusively to one spouse as well as the business interests of either a spouse or a family. These items generally remain separate property.
When it comes time to divide marital assets, both parties should strive for an equal split that works for both sides involved. However, courts may make decisions based on other factors such as contribution to assets by each partner and length of time together if an agreement cannot be reached between spouses.
It is always advisable for separating couples to seek legal advice from experienced professionals who can inform them about their rights and obligations under the law when it comes to making decisions about dividing family property in Ontario.
Inheritances
Inheritances are generally not considered to be a part of marital property in Ontario when it comes to the division of assets following a separation or divorce. This means that if someone receives an inheritance prior to or during the course of their marriage, they will not have to divide the inheritance with their spouse upon separation.
However, it is important to note that if any money from the inheritance is used for joint expenses – such as common bills or large purchases like a car or house – then the money may become ‘co-mingled’ and be subject to division. In such cases, it would be wise to speak with a family law lawyer who could provide advice on how best to proceed with dividing the inheritance.
How Inheritances May Become Marital Property
Inheritances are generally considered to be the property of the spouse who received it upon separation or divorce. However, if any money from an inheritance is used for joint expenses – such as common bills or large purchases like a car or house – then it may become ‘co-mingled’ and be subject to division. In such cases, it would be wise to speak with a Tailor Law family law lawyer in Mississauga who could provide advice on how best to proceed with dividing any co-mingled assets.
Gifts
When it comes to the division of property in Ontario after a separation or divorce, gifts are generally considered to remain separate from marital property. This means that if one spouse receives a gift – either before or during the marriage – that gift is not subject to division when the couple separates.
For example, if one spouse was given a car as a graduation present prior to getting married, then that car would still remain their personal property even after separation. The same goes for gifts received by an individual from their family members or other outside sources.
However, if any money from the original gift is used for joint expenses – such as common bills or large purchases like a car or house – then it may become ‘co-mingled’ and be subject to division. In such cases, it would be wise to speak with a family law lawyer who could provide advice on how best to proceed with dividing any co-mingled assets.
Ontario Family Law Act
Under the Ontario Family Law Act, gifts and inheritances are typically considered to belong only to the spouse who received them. This means that when it comes to the division of assets following a separation or divorce, gifts and inheritances are generally not considered to be part of marital property.
However, it is important to note that if any money from a gift or an inheritance is used for joint expenses – such as common bills or large purchases like a car or house – then the money may become ‘co-mingled’ and be subject to division. In such cases, it would be wise to speak with a family law lawyer who could provide advice on how best to proceed with dividing any co-mingled assets.
The family lawyer is a specialized professional who helps people with their finances, and property and in disputes between couples.
Whether you are considering divorce or not, you can receive more detailed information and advice on the exclusion of inheritance and Gifts from one of our Family and Divorce Lawyers in Mississauga. You can reach our office at 905-366-0202 or contact us through our website here.
