How to Navigate Complex Marital Property Division in Divorce?
Posted on March 25, 2024
Divorce is a multifaceted process that marks the end of a marital relationship and initiates the complex task of separating intertwined lives, sometimes for many years. Central to this separation process is the division of marital property, which can often become a point of contention and complexity. Understanding the nature of marital property and the intricacies involved in its division is crucial for anyone navigating a divorce, especially in the unique legal landscape of Ontario.
At Karrass Law, our team of legal experts composed of civil litigation lawyers and family lawyers are here to help you navigate the complexities of property division. Here are some insights into complex material properties.
Understanding What Marital Property Is
Marital property includes all assets and liabilities that couples accumulate during their marriage. However, the division of this property during a divorce can become complicated, necessitating the expertise of a family lawyer. This is because not all property is treated equally under Ontario’s family law.
Two key categories of property underscore the complexity of asset division: the matrimonial home and excluded property. Each has distinct rules affecting how they are divided upon the dissolution of a marriage, highlighting the need for legal consultation to navigate these waters.
What Is The Matrimonial Home
The matrimonial home in Ontario is an anomaly in the division of assets during a divorce. Unlike other assets, the value of the matrimonial home is not calculated based on its pre-marriage worth but includes the full value at the time of separation. This rule applies even if one spouse owned the house before the marriage. Consequently, the entire value of the matrimonial home, including any increase in value that occurred during the marriage, is subject to division. This can lead to significant financial implications for both parties.
To avoid unintended outcomes, couples may enter into a domestic contract, which can alter the default legal treatment of the matrimonial home. Without such a contract, the home that once symbolized unity and family becomes a central figure in property division negotiations. If the matrimonial home is causing conflict and confusion in your separation, it’s best to contact a reliable and trusted division of assets lawyer experienced in family law and civil litigation at Karrass Law. Our experts will help assess the situation and help you get a fair settlement.
What is Excluded Property?
In addition to the matrimonial home, there are other types of property that generally follow a simpler rule: the value of assets owned before the marriage is excluded from the division of property. This includes financial assets, businesses, and similar properties whose value at the date of marriage is not divided. However, any increase in value of these assets during the marriage is subject to division.
Certain properties, such as gifts, inheritances, damage awards, and life insurance proceeds, are entirely excluded from the division, provided specific conditions are met to maintain their excluded status. Despite these exclusions, the complexity arises when a previously excluded property becomes intermingled with marital assets or when a spouse contributes to its improvement, potentially making it subject to division. Because of the complexities here, the best course of action would be to set up a legal consultation with your family lawyer.
Navigate Property Challenges During Divorce with a Family
Lawyer
The division of marital property in Ontario, especially concerning the matrimonial home and excluded property, underscores the importance of consulting with a family lawyer. A civil lawyer in Toronto with expertise in family law can offer invaluable guidance, helping navigate the legal intricacies and ensuring a fair division of assets.
Starting with a legal consultation, the Karrass Law team will help you better understand how the law applies to your situation, ensuring your rights and interests are protected. Whether through negotiation, mediation, or litigation, our team of lawyers will advocate on your behalf, aiming for a resolution that reflects the complexities of your unique case.