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Division of property can be recorded in domestic agreement

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Hands hold together a family tightly.On behalf of Laughlin Lawyers & Mediators posted in Division of Property on Thursday, May 25, 2017.

British Columbia residents who are considering marriage or entering into a cohabitation relationship may find it difficult to broach the subject of domestic contracts. However, most people who make such commitments might have already accumulated some assets that will need protection if the marriage or common-law relationship ends. Without the protection of a marriage or cohabitation agreement that specifies the personal assets, some may be lost in the division of property.

Couples that get married can sign marriage contracts, and joint law partners can sign cohabitation agreements. Those entering into a second marriage typically bring many personal assets into the union. However, if, for example, the couple resides in a home that one of the two spouses owned before the marriage, the other spouse may have a claim on the property in the event of a divorce — if this was not specified in a marriage agreement. Mortgage lawyers will fight for both sides in this case, and it may end up being a long drawn process of court cases and arguments.

Another scenario to consider is a couple who moves in together, and the man verbally assures the woman that he will share all his assets with her. If they never record that promise in a cohabitation agreement and then comes the day that the relationship ends, the woman has no right to any assets that were pledged to her. Another type of domestic contract is a separation agreement that a couple can draft to record how they plan to deal with various issues that typically arise when a relationship ends. This can protect in the absence of a marriage or cohabitation agreement.

Some British Columbia couples that are considering marriage or cohabitation agreements may have questions about the legal requirements of such contracts. The most suitable step to take might be for each party to consult with an experienced family law lawyer who can answer questions and explain how such an agreement can protect the assets of each party during the division of property. The lawyer can assist with drafting a contract that will hold up in court if it is challenged.

Lawyers Coquitlam, BC

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Source: lukesplace.ca, “What are domestic contracts?“, Pamela Cross, Accessed on May 19, 2017

Can bankruptcy resolve debt issues in division of property?

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Money & cars can be considered wealth to be divided.On behalf of Laughlin & Company Lawyers Mediators posted in Division of Property on Wednesday, April 26, 2017.

When British Columbia couples consider divorce, it might be a good idea to sit down and discuss how mutual debts will be handled before the divorce is finalized, rather than waiting to face the consequences afterward. With agreements regarding the division of property in place, those issues will not be left to the discretion of the court.  In divorce, debts will be treated in the same way as assets.

However, creditors are not interested in a couple’s marital status, and regardless of what a family law court orders, banks hold responsible those in whose names the debts are registered. When a marriage ends, and one spouse moves out, there’s typically less income to meet expenses such as rent, utilities, grocery costs and more. One spouse may be left with the cost of maintaining the family home, while the other could have the additional burden of child and/or spousal support. This may lead to an inability to keep debt payments current.

It is often advised that couples should close joint accounts and open personal accounts before the divorce gets underway, but they may not be able to settle the outstanding balances to enable them to close certain credit card accounts. Although a divorce will physically separate a couple, debts may keep them connected for some time. One option may be to apply for two separate bank loans to settle debts before the divorce, but only if both parties can afford the loan payments that will follow.

Any British Columbia individual who is heading for a divorce can find an attorney who can provide valuable advice along with support and guidance throughout the process, including the division of property. If the debt level is excessive, the possibility of filing for bankruptcy might be considered. This may allow the person to have a fresh start — both financially and personally.

Contact Laughlin & Company Attorneys if the division of property is a concern for you.

Source: globalnews.ca, “Heartbroken and bankrupt: Why divorce can destroy your finances“, Erica Alini National, April 17, 2017

Lawyers in Port Coquitlam, BC

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Division of property: What will happen to the family home?

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A family home that may be sold to separate assets.On behalf of Laughlin & Company Lawyers Mediators posted in Division of Property on Tuesday, March 28, 2017.

Like other provinces and territories, British Columbia has a matrimonial and family law act that governor provides guidelines for — the way assets and debts are divided in a divorce. While many couples have complicated estates that include stocks or bonds, family businesses, real estate and more, deciding what to do about a matrimonial home is often the most difficult part of the division of property. It could be an equally challenging process in a divorce of a couple with average assets.

In British Columbia, a couple must have been in a marriage recognized as valid under the law to require the division of the marital home. In most cases, a common-law relationship does not give one party the right to claim a share of a home in the other party’s name. In the eyes of the law, a home in which the couple lived together during their marriage must be subject to equal distribution in divorce because marriage is considered an equal partnership.

While certain rules exist for other assets that will only be divided if acquired during the union, special rules are in place for the marital home which may require the assistance of a real estate lawyer. Assets that belonged to one spouse before the marriage will remain that person’s property, except the family home will be divided even if it belonged to one spouse before the wedding. If one spouse wants to keep the residence in which the couple lived, he or she can buy the other spouse’s share or give up equivalent assets; otherwise, it can be sold and the money shared equally.

Regardless of the wealth of a divorcing couple in British Columbia, if there is a marital home that will be part of the division of property, it could complicate matters. However, under the guidance and support of experienced Laughlin Law Lawyers, the various options available can be evaluated. Understandably, decisions that could post-divorce financial stability must be made with care.

Source: FindLaw Canada, “What happens to a matrimonial home after a separation?“, Miriam Yosowich, Accessed on March 27, 2017

Lawyer Port Coquitlam, British Columbia

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370