Do you know how long after separation can you claim assets? Our guide will provide all the information about the timeframe. If you are separated from your spouse, there is no reason to share your assets or keep everything in your spouse’s house. Unfortunately, taking the marital assets immediately is impossible because of some legal procedures. In this article, we will inform you of the factors to become prepared and complete everything faster.
Key Points:
- The definition of marital assets and their types.
- Introduction to property division in marital life.
- Timeframe to claim assets after separation.
To understand when to claim marital assets, you need to know the main root of assets, which is property division. Because the process needs some clarification and acknowledgment from the justice person. So, our first section will describe the property division, and then we will process to asset division.
What is Property Division in Divorce?
Property division discusses how couples divide their property after the divorce. Two main systems states use to divide property are community property and equitable distribution.
- In community property, the couple can divide equally into community property states.
- In an equitable distribution, the property is divided fairly but not equally.
The best outcome is usually for divorcing couples to divide their property themselves. The couple can list all the items and decide who gets what. If the couple cannot agree, a judge will divide the property according to state law.
What is the Division of Assets in a Divorce?
Divorcing couples face many hurdles, but dividing assets is often the most complex. “Division of Asset” is also known as “marital asset division.” It disentangles your financial lives, separating property, money, and even debts.
An ideal outcome involves a fair, 50/50 split for each spouse, but achieving it is much harder. If you face off such a condition, you can get help from spousal support lawyers in Moose Jaw. A lawyer can advocate for a solution that ensures both parties reach a clear and equitable agreement.
Types of Claimable Assets
The assets could be financial and physical. For example: Bank accounts, furniture, vehicles, etc. In some provinces, the court considered net worth pre-marital property and excluded property to fine point the distribution.
List of Claimable Assets
Asset Type | Asset Items |
Real Property |
|
Personal Property |
|
Financial Assets |
|
Business Interests |
|
Intellectual Property |
|
Insurance Policies |
|
Debt |
|
How Long After Separation Can You Claim Assets?
There is a maximum of a two-year time limit to claim assets, and informal agreements can be considered. Courts examine factors like the relationship’s length and the assets’ value. But married couples and common-law partners have a different time limit for the same purpose. Common law partners have to apply within 2 years from the date of separation, and married couples have to apply within 12 months. A federal law called the Family Law Act applies throughout Canada.
Factors that Delay the Division of Assets in Canada
- Complicated assets, like multiple properties, businesses, investments, etc., are harder to sort out and divide the value. If you have such assets, prepare to take more time.
- Disagreements over asset valuation, ownership, or division can lead to prolonged negotiations. So calm your mind and reach a mature agreement with your spouse.
- The legal process can be time-consuming, especially involving court hearings, mediation, or arbitration. In this case, you just have to rely on your luck!
- Delays can occur if there is incomplete information regarding assets, income, or debts. So, make sure you hire expert lawyers and auditors to find out information.
- Some assets, like businesses or unique properties, can be difficult to value, requiring expert appraisals and assessments.
- Emotional stress and conflict between parties can hinder cooperative and timely decision-making.
How are Pensions Split in Divorce in Canada?
In most jurisdictions, any pension benefits accrued by a spouse during the marriage are presumed to be marital assets. You can rely on two methods for splitting the money from your pension.
Equalization of Net Family Properties
Under this method, the actuary calculates the fair market value of each spouse’s pension benefits accrued during the marriage (up to the separation date). The difference between these values is then split equally between the spouses. The purpose is simple. The court wants each spouse to have similar benefits to make fair usage.
Pension Attribution
This method considers “pension credits” earned throughout the marriage. These credits reflect each spouse’s contribution, and the future pension is ultimately split based on them. Usually, 18 to 60 years people have to pay pension subscriptions until they retire, and then the court can split it between spouses.
How to Use the Pension Divorce Calculator?
The pension divorce calculator offers a ballpark estimate of your potential divorce settlement, including pension division. Remember, it’s for informational purposes only and doesn’t replace legal advice. Until now, you can follow the four types of tasks below to calculate the pension divorce:
Gather Information
Collect specifics about the pension plan, including its start date and contribution amounts, alongside pension statements and tax returns. Do not forget to crosscheck the tax return information. And, of course, the date must be accurate to get rid of any confusion in the court.
Input Relevant Data
Contact the pension plan administrator to request a valuation for the portion accrued during the marriage. There might be a charge as fees for this service. But that charge is very small in amount. You have to visit the office of the pension plan advisory to complete this process.
Calculation Process
Take benefits from a family lawyer or financial advisor experienced in divorce settlements. They can clear out the complexities throughout the entire process. Sometimes, the calculation is not done mathematically; instead, it is done analogically. So you have to do it in front of legal professionals for no mistake.
Understand the Outcome
Once an agreement is reached, document it in a formal separation agreement or include it in your divorce settlement finalized by a court. You will find all the templates for all the provinces and cities of Canada on the Law Dipot website. Do not feel lost or find the wrong template from unknown sources.
Conclusion
To grab a fair outcome, gather information about the pension plan and hire a good family lawyer. We have seen some people living together after the divorce to save their daily life expenses. If you have good communication with your ex, it could be cost-efficient. Otherwise, it’s a bad idea. Whatever happens, just contact a lawyer and finish claiming assets at the right time like a wise person.