Friday, October 20, 2017

Divorce lawyer explains the division of family property in Mississauga ON

When two individuals get married, they will share a home together and eventually start a family together. During this time, they will acquire properties. In many cases, both partners will bring their personal belongings into the marriage. However, in the unfortunate event of a divorce, it will eventually lead to the division of family property. There is little that either party can gain by engaging in a bitter dispute with regard to family assets. When a marriage dissolves, the Family Law Act (FLA) dictates the property rights of the family’s assets. Part I of the FLA address general matrimonial property, while Part II is dedicated to matters regarding the matrimonial home.

How is family property divided during a divorce?

When considering the division of family property in Mississauga ON, the FLA comprises the guidelines used in this situation. During the division of family property, the value of the property that was acquired during the marriage will be equally divided between both parties through a process known as ‘equalization’. This process involves the calculation of the net family property (NFP) of both parties. A spouse’s NFP can be described as the difference values of assets from the date of marriage to the date of separation. The party that possesses the higher NFP will be obligated by the FLA to cover the difference in NFP. It should be noted that only half the difference in NFP must be covered.

What assets are taken into account as family property?

During the calculation of each party’s NFP, there are several assets that are considered. These include bank accounts, investments made, insurance policies taken, family home, automobiles, recreational motor vehicles, interest in a business, registered retirement savings plans, pensions, as well as money owed to a spouse, among other assets.

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