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When a marriage or an adult interdependent partnership ends, Alberta’s Family Property Act governs how property is divided. Its starting point is fairness, and in many cases that means a presumption of equal sharing of the property that is divisible.
What is divisible and what is exempt
Generally, property acquired during the relationship is divisible, while certain property is exempt, such as gifts and inheritances received by one partner and property owned before the relationship. An important twist is that any increase in the value of exempt property during the relationship can still be shared.
Debts are considered too, and how property is titled does not by itself decide the outcome.
Businesses and farms
A family business or farm is often the largest asset and the hardest to divide. It may need to be valued by an expert, and a partner who wants to keep it may need to buy out the other, sometimes over time. Land held with other relatives or through a company adds complexity.
Disclosure of financial information is a critical early step in any negotiation.
Process and timing
Many couples reach agreements through negotiation or mediation, and agreements should be in writing and properly signed. If a claim goes to court, there are limitation periods for applying for a division of property, so get advice soon after separating rather than waiting.
Getting ready
- Gather statements, tax returns and valuations for property, debts and any business.
- List what you owned before the relationship and what was gifted or inherited.
- Ask about limitation periods as soon as you separate.
- Get any agreement in writing and reviewed by a lawyer before signing.