The Matrimonial Property Act (MPA) controls how matrimonial property is dividing among Alberta upon divorce. Certain property is exempt from distribution at the breakup of a marriage, according to the Act.
Exempt implies that the government has determined that this asset is so personal that you are not required to share it with your spouse. If you treat marital property in a way that causes it to lose that status, you risk losing those exemptions.
These basic exemption principles apply to cohabiting parties as well. Learn more about marital property exemptions and how to maintain the exemption status throughout an Alberta divorce.
What is Considered a Matrimonial Asset?
All property obtained by either partner during the marriage is considered marital property. This covers the acquisition of a marital house by either spouse, either as a pair or independently. After a marriage dissolves, matrimonial property is usually split evenly between the spouses.
As previously stated, exempt property is the property that is not subject to equal distribution upon the dissolution of a marriage. This includes property obtained by a partner before the marriage and property inherited or received as a present during the marriage.
What Property is Exempt from Division in an Alberta Divorce?
The Matrimonial Property Act Alberta common law legislation governs property classification and distribution after a marriage dissolves. The law presumes that marital property and debts will be distributed evenly between the couples.
The MPA defines marital property as property obtained by either couple during or after the marriage. Unless unique circumstances render an equal distribution unjust, matrimonial property, including debts, shall be shared equally between the divorced spouses. The MPA advises in such exceptional instances.
Property that is excluding to division under the MPA includes the following:
- Before the marriage, held assets
- Inherited property
- A personal injury lawsuit’s proceeds
- Third-party property obtained as a gift
- Proceeds from insurance
To be classed as excluded property, there should be evidence that the property still existing and have to connect to an item that exists. The MPA also exempts some types of property from the split, and we’d want to go over the various types of property defined either by MPA here.
If the value of the excluded property has grown during the marriage, the gain in values may be split between the couples. The MPA does not believe that this rise in value should distribute evenly. Instead, the law presumes that this value should include distribution equally and not arbitrarily.
When Can I Apply for a Matrimonial Assist Attempt?
A Charge sheet for a Matrimonial Property Order must submit within two years of the couple’s divorce. However, the deadline for filing is one year after the property is sold or given away. The lawsuit for a marital asset cannot begin more than two years after the Court grants the divorce decision.
How is Matrimonial Property Divided?
When a marriage fails, whether through separation or divorce, there are numerous factors to consider in terms of ownership. What if you and your partner disagree about how to split your property?
In Alberta, the Matrimonial Property Act use by the Court to distribute assets equitably. In Alberta, the MPA only applies to lawfully married couples. It does not seem applicable to those who are married or in a common-law marriage.
When Spouses Disagree on Property Division?
When both couples neither agree on how to split the joint property or a specific matrimonial property, the Matrimonial Property Act Alberta forms requires the Court to issue the ultimate ruling for them.
Daily sessions are not the way to deal with marital property, except for procedural orders, consent issues, and maybe interim distributions. Matrimonial property split is permanent and necessitates a final procedure, including a summary trial, consent judgment, or full trial.
The Court shall consider all assets and obligations accumulated by each party throughout the relationship, whether in specific names, joint names, or business names, while determining the decree.
The Court will indeed look at property taken through into marriage from outside sources, including a gift from a third party, an inheritance, and pre-marriage assets.
Since all property and liabilities gained during the marriage are dividing equally. The rise in values of the Exempt Property allocates in a way that the Court considers fair and equitable.
Does Property Remain Exempt Matrimonial Property If Sold?
The exempt property must still survive within the initial form or even be identifiable to present property. When you sell anything exempted property, it does not automatically lose its position as matrimonial property exemption (MPE).
Therefore, to maintain our tax-exempt status, we must link the sale profits back to an existing property. If you are unable to trace the item, you will lose the exemption with that asset.
This implies that if you inherit a house and sell it, you can keep the status if you utilize the money from the sale to purchase a new property.
How Marital Contracts Change Division of Assets on Divorce?
Matrimonial agreements are essential for safeguarding all property, including exemptions. In the case of a prenuptial contract, any contract or communication between both the couple about the exempt property during their marriage will not dictate how the Court will evaluate the distribution of your assets.
This implies that for any contract to be enforceable, it must be written appropriately, properly signed, and have obtained impartial legal counsel.
Help With Protecting Assets From Family Lawyer of Edmonton
The distribution of marital assets is a complicated issue. In most situations, the aid of a lawyer strongly advise. Even the division of a single marital asset can lead to heated arguments between separating couples.
If you have any exempt assets or anticipate having any in the future, you should protect yourself. A properly drafted cohabitation, prenuptial, or postnuptial agreement is prudent. This guarantees that your distinct property is appropriately secured.
The family law experts can assist you with your legal issues regarding marital property exemptions and asset protection. Family law contracts have long-term consequences.
All assets and obligations collected by either or both spouses throughout the marriage, including anything obtained after the date of divorce, are considered marital property. This can include real estate, automobiles, credit cards, and household items. Unless it would be unjust to one of the parties, the value of the marital property is divided equally between the two parties.