Property Division

Division of Property

One of the main issues involved in a divorce or separation is the division of family property. The Matrimonial Property Act, now the Family Property Act, sets out the law regarding the division of property in Alberta. The presumption is that any and all property (assets and debts) acquired during the relationship will be divided equally. The legislation provides that certain property may be exempt from the division of property. The following are assets that may be considered exempt and therefore not included in the division of property:

 Property acquired by a spouse by gift from a third party;

• Property acquired by a spouse by inheritance;

• Property acquired by a spouse before the marriage;

• An award or settlement for damages in tort in favour of a spouse (subject to some limitations);

• The proceeds of an insurance policy that is not insurance in respect of property, unless the proceeds are compensation for a loss to both spouses.

The matrimonial home, now known as the family home, is the home in which the family or couple resided during the marriage or relationship. Typically, upon separation, one party wishes to remain in the family home. To do so, it may be necessary to bring an application for exclusive possession of the home. This is typically an interim decision until a final disposition can be made regarding the home.

Prior to January 2020, unmarried couples were not included in the Matrimonial Property Act. For a party to claim entitlement to property owned by their ex-common law partners, they had to claim that their ex-partner has been unjustly enriched by the relationship such that it would be fair and equitable to share some of the property in the ex-partner’s name. As of January 2020, the Matrimonial Property Act has been renamed the Family Property Act and applies to adult interdependent partners. All parties are now subject to the same rights and entitlements as married couples, including the rights attached to family property. However, if you and your partner separated prior to January 2020, any claims to property must be brought via a claim in unjust enrichment

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