Tag Archive for: Retirement Accounts

You are here: Home / Retirement Accounts

Posts

Property division in British Columbia

/in /by

On behalf of Laughlin & Company Lawyers Mediators posted in Division of Property on Thursday, March 12, 2015.

When a person is preparing to get a divorce, it is important for him or her to think critically about how the property that has been accumulated will be divided. In addition to the division of property, divorcing people should also expect that their debts will be divided as well.

An important first step to take in preparation is to fully account for all of the assets, income sources and debts held by each spouse as well as those held jointly. People may then arrive at an idea of their worth by subtracting the debts from the value of the assets. Doing this may provide a basic idea of the amount that might be expected upon the property division.

It is important for people to think carefully before agreeing to give up their interest in such things as retirement accounts or pensions in exchange for other assets. Pensions and retirement accounts may be much more valuable when a person reaches their retirement age, and evaluating any proposed agreements should account for the present value and the future expected value of the portion that would be received. Finally, people should gather all of their financial documents in preparation for filing, including account statements, bills, deeds, titles and tax returns, as all will be needed during the divorce.

Divorce can be highly emotional and difficult, but it is important for divorcing people to take an organized and reasoned approach in order to protect their interests. Property division may be very complex, requiring valuation of assets and appraisals. Understanding the current and future value of assets that are held could help in protecting one’s rights and interests in the future. A person who is divorcing may want to bring their financial paperwork when meeting with a family law lawyer for help.

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

Dividing collective property in a divorce

/in /by

On behalf of Laughlin & Company Lawyers Mediators posted in Division of Property on Monday, December 29, 2014.

British Columbia couples considering divorce might want to prepare for the fact that a substantial portion of the assets they own might fall under the legal category of family property, which is subject to division by law. Assets obtained independently and prior to the couple’s relationship are one of the few types of possessions excluded from the family property classification.

Assets classified as family property when couples separate include those that were independently obtained by one spouse yet served the couple’s beneficial interest. Property that is purchased after the separation may also be classified as family property if the means to obtain it came from family property resources. Many financial assets are destined for the same classification, including shares in a company, business interests and balances from both bank and retirement accounts. In the same way, debts acquired by the couple is deemed collective in a divorce and therefore subject to division between the two splitting parties.

However, family law in British Columbia does allow for ex-spouses to personally keep as undivided property any inheritances bequeathed to them but not their partner . The same holds true for compensation or other damages awarded to one of the spouses on account of a civil lawsuit in most cases.

That, generally, is how family courts begin to decide the manner in which property will be split. Yet, couples and their lawyers may negotiate an agreement regarding property division on their own terms and submit it to the court for ratification. Success often hinges on the representation and professional wherewithal of the lawyers retained by individual spouses, especially if the dissolution of the marriage contains an evident level of hostility, resentment or vindictiveness.

Source: Queens Printer, BC, “Family property“, December 24, 2014

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

Dividing a couple’s family property at the end of a marriage

/in /by

On behalf of Laughlin & Company Lawyers Mediators posted in Division of Property on Wednesday, July 16, 2014.

British Columbia residents may wish to know how property is divided when a couple divorces. The law has a specific method, but couples are free to come to a separate agreement if they wish.

Under B.C. law, there are two categories of property relevant to a couple when they decide to divorce. Family property is defined as any property that each of the spouses came to own, either on their own or as a couple, until the day that they separate. This can be anything from retirement accounts to a family home. Excluded from this definition is anything that falls under the category of excluded property. Three types of property fall under the excluded definition, and they are property owned by a spouse prior to marriage, property that was gifted to or inherited by one spouse, and certain types of legal damages, trust property and proceeds from insurance policies. When this excluded property increases its value during the marriage, however, that increase in value is usually deemed to be family property.

These rules apply to married couples and to those who have cohabited for over two years in a relationship resembling a marriage. Any property that is deemed to be family property and not excluded is divided equally between the former couple when they divorce. In some cases, however, an unequal property division is appropriate when an equal split would not be fair to one party.

Additionally, a couple can choose to negotiate a different division of property agreement if both parties so desire. A lawyer who has experience in family law may be able to counsel one party and decide what constitutes a fair division of the family property. The lawyer may then be able to draft an agreement to be signed by the former spouses.

Source: Justice BC, “What happens to family property when spouses separate?“, July 15, 2014

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