Property division in an Alberta divorce follows the Family Property Act, which calls for equal division of assets and debts acquired during the relationship. Certain items, like pre-relationship property, inheritances, and personal gifts, are exempt. Alternative approaches like Mediation or Collaborative Divorce offer more flexibility and privacy, often involving financial professionals to help couples reach fair, personalized agreements outside of court.
What Property is Included in a Division?
According to the Family Property Act, all property acquired by either you or your spouse during your relationship, whether held individually, jointly, through corporations, or by third parties on your behalf is generally subject to division. The period starts from when the couple began cohabitating and typically ends at the trial date.
However, the trial date is often more theoretical than practical, as nearly all divorce cases settle before reaching trial. Thus, lawyers and clients commonly agree upon a practical date, known as the valuation date, to determine the property values for division.
How is Property Divided?
The starting point for property division is typically an equal split of assets and debts between both parties. However, the courts can deviate from this equal distribution based on various factors outlined by the law. These considerations might include contributions by each party, the length of the relationship, and the financial circumstances post-separation.
Exceptions to Equal Distribution
Certain properties are exempt from division. These exemptions include:
- Assets Owned Prior to the Relationship: Property and debts owned by either you or your spouse before the relationship started.
- Inheritances: Any inheritance received by that your or your spouse have received during your relationship.
- Gifts: Gifts specifically given to one party by a third party.
- Insurance Settlements: Compensation from insurance claims, such as personal injury settlements (e.g., from a car accident or slip-and-fall injury).
These exemptions ensure fairness by recognizing specific individual entitlements.
Alternative Approaches: Collaborative Divorce and Mediation
Choosing Collaborative Divorce or Mediation offers greater flexibility compared to litigation. Both processes empower you to craft customized agreements suited to your unique needs. Unlike a court-imposed decision, mediated or Collaborative agreements can creatively address property distribution, incorporating factors the courts might not typically consider.
Role of Financial Professionals
Another significant advantage of choosing Collaborative Divorce or Mediation is the ability to involve financial professionals to help you make key financial decisions when dividing property. Divorce financial specialists bring valuable expertise, analyzing complex financial situations and suggesting innovative solutions. These professionals help you both to understand the full financial picture, ensuring that you both feel informed and confident about your agreement.
Lawyers, mediators, and financial experts collaboratively contribute their experience, creativity, and expertise, aiding you and your spouse in finding mutually agreeable solutions. This collective approach often leads to more comprehensive and satisfying outcomes than traditional litigation.
Dividing property during a divorce in Edmonton doesn’t have to be adversarial. Understanding Alberta’s legal framework and considering processes like Mediation or Collaborative Divorce can facilitate a smoother, fairer division of assets. With the support of skilled professionals, you can achieve personalized, equitable agreements that meet each of your financial and emotional needs.
Miller Boileau Family Law Group is located at 10981 127 St. NW, Edmonton, Alberta, T5M 0T1.
Pierre Boileau
Over almost 35 years of practice Pierre Boileau, K.C. has gained experience as a Mediator, Collaborative Family Lawyer, Litigator and now as an Arbitrator. Pierre’s extensive experience has shown him that client satisfaction is maximized when clients have control over their own future. This can best be achieved through interest based negotiation. Only as a last resort, should litigation be considered. When necessary, Pierre relies upon his vast court experience and training.
Pierre remains committed to continuing to practice at a high level with particular care, interest, and sound judgment. He doesn’t shy away from particularly challenging cases. Pierre’s greatest reward comes from the satisfaction of assisting clients through one of the most challenging experiences of their lives.