Our skilled Calgary Joint Matrimonial Property Lawyers know that there is a huge difference between how Calgary exempt property and Calgary matrimonial property is divided. Our Calgary Joint Matrimonial Property Lawyers encourage and advise our Calgary medium to high net worth clients to sign prenuptial and marriage agreements to deal with matrimonial property particularly a third class of property called “shareable property”. Shareable property includes the increase in value of your exempt property or what you may purchase with the increase of value or income of the exempt property. Today’s blog may help Calgary family law clients from making a huge mistake. If you are separating or re-partnering and own substantial Calgary matrimonial assets pick up the phone and talk to Lorne N MacLean, QC today.
Calgary Joint Matrimonial Property Lawyers 403-444-5503
In today’s blog Lorne N Maclean, QC founder of Calgary’s MacLean Family Law warns that uninformed spouses may give away or “lose”their exemption without even being aware of what they are doing. Uninformed financial advisors and non- specialist lawyers may inadvertently cause problems with estate planning techniques or creditor protection strategies.
Calgary Joint Matrimonial Property Lawyers Explain Exempt Property
MacLean Law’s top rated* Calgary Joint Matrimonial Property Lawyers, tell clients that the following types of property called “exempt property” are not shareable under Alberta’s Matrimonial Property Act for married persons:
- Assets each party owned separately prior to the marriage;
- property that was gifted from a third party to one spouse alone;
- property acquired by inheritance;
- an award or settlement for damages in tort; and
- proceeds from an insurance policy other than property insurance.
*(Top Choice Award (2014, 2016, 2017), top rated reviews on Google, Yelp, threebestrated, lawerratingz.com).
So far so good, for the spouse bringing this class of property to the marriage. But the transfer of property into joint tenancy by the spouse who owns the exempt property has a dramatic impact on the exemption for Calgary married couples.
Once exempt property (including new property acquired with exempt property!) is transferred by the owning spouse into joint names, the spouse who originally held the property in his or her name is now presumed to waive his or her exemption in the exempt property to the other spouse. This simple act of changing ownership into joint tenancy means half of the value of the otherwise exempt asset would be divided between the spouses upon a divorce.
Our Calgary Joint Matrimonial Property Lawyers direct you to the exact section so you can be aware of the potential pitfalls of placing property in joint names for creditor protection or estate planning:
Presumption of advancement
36(1) In making a decision under this Act, the Court shall not apply the doctrine of presumption of advancement to a transaction between the spouses in respect of property acquired by one or both spouses before or after the marriage.
(2) Notwithstanding subsection (1),
1(a) the fact that property is placed or taken in the name of both spouses as joint owners is proof, in the absence of evidence to the contrary, that a joint ownership of the beneficial interest in the property is intended, and
2(b) money that is deposited with a financial institution in the name of both spouses is deemed to be in the name of the spouses as joint owners for the purposes of clause (a).
Call us today at 403-444-5503 to met with our multiple award winning family lawyers. We’ll help you plan for Calgary Matrimonial property division before you get married and sort things out if you are married and going through divorce. When the stakes are high it pays to hire a top rated* Calgary family lawyer at 403-444-5503.
