Property Acquired After Separation But Before Divorce

Property division is one of the hardest challenges you face when navigating a divorce. From inspection, valuation, to distribution, at every phase of the process, you will find confusing topics bubbling up one after another. A good example is the property gained during the separation period.

Should you share the money and assets you earned after initiating the separation? Does your ex-partner have a claim on them? Do you need to describe them in your divorce petition? What does the Family Law Act in Canada say?

Stop feeling haunted if a series of questions like these is clouding your mind. This article will answer all of them, outlining the legal aspects of post-separation property in a divorce.

Key Takeaways

• The court considers all properties acquired within the marriage and separation dates as the Net Family Property.
• You may have to share your post-separation gains with your former partner, given that they have come from mutual funds, and there is no evident separation date and record of a new marriage.
• While facing court orders on property settlements, legal help is your best chance for winning.

How Does a Settlement of Properties Work in Canada?

A property can be of two fundamental types. Tangible, including real estate, furniture, bank balance, annual income, possession, and so on. And intangible, such as investments, contracts, and bonds.

In Canada, the law divides all properties between spouses in equal shares on fair grounds. However, the list excludes matrimonial properties and those made before the marriage. There are a few factors that govern the court in settling property issues. Such as:

• Cohabitation agreements, for both the separation and any new relationship with another person.
• The separation date.
• The Net Family Property (NFP)
• The Community Property is the part of the properties subject to an equal share.
• Type of the property: inheritance, matrimonial, or owned individually.
• How much a spouse has contributed to increasing wealth or reducing debts.
• How the properties are sourced: matrimonial resources or personal accounts.
• The ability and scope of each partners in carrying out financial responsibilities, like earning, buying, and clearing debts.

What Happens to the Properties Acquired After Separation?

When dealing with post-separation property gain, you need to focus on cohabitation agreements, the separation date, the NFP, and the type of resources invested in the new acquisitions.

Let’s find out what they mean in the context of property sharing between parting couples.

What are Cohabitation Agreements and the Separation Date?

These encompass any documents, statements, or records made during marriage registration, separation, or remarriage. They hold key information, like prenuptial agreements regarding property allotment, the date of the marriage, the date the separation began, and ownership of properties received from the new partner.

These are all essential, as they help the court determine

• The Validity of the Marriage and Separation: To legally claim each other’s property, couples must show some proof of their relationship. A copy of the marriage or Common Law registration paper does the job. A proclamation paper of the separation reveals the authenticity of the break-up and its initiation.    
• The Size of the Actual Shareable Property: Also known as the Net Family Property (NFP), which includes any increase in the value of the previously owned property, and any financial or asset gain between the dates of the marriage and separation.
• The Inclusion of Post-Separation Property: If the separation and a post-divorce marriage are not registered or documented, it creates room for dispute. Your ex-spouse may claim shares of any new property that you have received from your new spouse. In addition, with no clear separation date, you can’t prove whether it’s before or after the separation when you acquire your property. 

So, Do You Have to Share The Properties That Came After Separation?

The short answer is, “No.” The general procedure doesn’t take post-partition properties as Community property. The big answer won’t tell you otherwise, but will lay a few conditions.

Like

• Properties gained from a new spouse may be listed as shareable if the new marriage is not registered.
• In case of pre-nuptial properties, only the value increase will be distributed, not the ownership.
• If the new acquisition is made using a joint account or as a joint venture, it will be held as shareable.
• Only the properties earned or bought with personal endeavour won’t fall under the shareable category.

What to Consider While Navigating Post-separation Property Acquisitions? 

By now, you must have learned all the factors that go into filing, appealing, and distributing properties. To give you a clear insight into the things you need to be careful of during new acquisitions, we suggest you

• Be serious while handling marriage and partition statements. Clearly highlight the initiation dates and terms of agreement surrounding properties and finances.
• Joint accounts become obsolete for personal usage from the moment you declare the separation. In their expense, all gained assets automatically become shareable.
• When getting into a new relationship, validate it by registering or licensing via the provincial court.
• Use only personal funds if you need to buy real estate or anything that can be put on the Community list.

How MooseJaw Divorce Lawyer Can Help?

MooseJaw Divorce Lawyer is a team of seasoned legal minds who have honed their skills by handling and solving hundreds of family cases. We cover all your worries, making them easily solvable, and pursuing favourable court decisions.

With us, you move with confidence and hope for the best despite the complex legal landscape in Canada. We offer:

• Consultancy for any disturbance in your relations and support when they break.
• Unbreachable preparation, collecting evidence, acquiring papers and resources, filing timely and per general procedures, and interviewing witnesses.
• Strong representation, guiding you through formalities, putting your demands on the desk, raising evidence and reason-based arguments.
• Reliable service, bringing the best possible outcome for a situation.

Wrapping Up

Despite clear regulations, properties can turn into hot irons to handle, raising confusion over simple arguments. And the court, always intending to follow the rules and evidence, relies on written statements, live witnesses, and provincial guidelines in making its decisions. So, while dealing with acquisitions, especially during intense times like immediately after separation, seal gaps by recording every mutual decision and seeking professional legal consultation.