March 8, 2023

Adam Letourneau, K.C. - Managing Partner, Lawyer, LETOURNEAU LLP

The Family Law Act governs how family assets are divided in Alberta (FLA). Separated married couples and separated couples who have been living together in a marriage-like relationship for at least three years or who have a child together are covered by the FLA, whether they are married or not.

Family property is anything that each spouse (whether married or not) or both spouses own on the day of separation, including any growth or decrease in its worth, according to the FLA. Assets including real land or property (houses, land, commercial buildings), bank accounts, investments, businesses, shares in businesses, RRSP's, CPP credits, vehicles, and personal items are included in this, as an example.

The equalization of net family property principle serves as the foundation for family property division in Alberta. By deducting the value of each spouse's debts and liabilities from the value of their assets, the net family property—the total of all the assets and obligations—is determined, with each spouse being entitled to half of it in most instances.

Identifying the assets that are family property is the first stage in the split of assets. Some forms of property, including those bought before the partnership started, gifts or inheritances obtained during the relationship, and personal injury settlements, are potentially excluded from this assessment, meaning they may be off the table for division.  These exemptions are case specific.

Each spouse's net family property is estimated once the value of the family property has been established by deducting their debts and obligations from their share of the family property. Hence, the spouse with the higher net family property must split the difference with the other spouse.

The split of family assets must be distinguished from spousal support or partner support, which is determined by distinct criteria such as income, earning potential, and financial needs. However, the assessment of net family property division may change if one spouse is compelled to pay spousal support.  Again, each case is fact specific.

If there is a disagreement about how to divide the family's assets, either spouse may ask the Court to make a ruling. In Alberta, only the Court of King's Bench has jurisdiction to determine property division between a separated couple.  To determine a fair and equitable split of assets, the Court can take into account a number of elements, including the duration of the marriage, each spouse's contributions, and their individual needs and circumstances.

The Family Law Act, which governs the division of family assets in Alberta, is based on the idea of equalizing net family assets. It's crucial to obtain legal counsel if you're going through a separation or divorce to make sure your rights and interests are safeguarded.

Learn more about our Lethbridge divorce and family law lawyers, Adam Letourneau, K.C., Spencer McMullin, Emily Tilleman, Austyn Anderson or Tamera Tupou.

Learn more about Divorce and Family Law Frequently Asked Questions from our website.

Call 403-329-4311 to set a free Divorce or Family Law or Property Division consultation today with one of our Lethbridge Divorce or Family Law lawyers.

This article is for information purposes only and does not constitute legal advice.