"Unjust enrichment"

[wmike]

Lindsay...

I have seen you use the term "Unjust enrichment" can you please
clarify and explain. In my scenario, I have a pension and must make a equalization payment to my wife but what if she does not disclose her true RRSP value too me. A value that can be easily provided by the Bank on the date of Separation i.e. July 2004. Correct.?

Thanks

[Lindsay]

Hi wmike,

Jeffrey provides a good explanation and examples of unjust enrichment on his common law separation web site. Please note however that claims for unjust enrichment only apply to common law couples.

As a married person, perhaps you are referring to seeking an adjustment to the equalization payment. Adjustments can be asked for when one party has assumed a large joint debt or when one party has obtained/removed the funds from a joint bank account. Also, if one party owned the matrimonial home at the date of marriage and the marriage was short-term, the homeowner may claim an adjustment to the equalization payment based on the fact that the other party didn't have enough time to make a substantial contribution to the home and as such should not be automatically entitled to 50% interest.

Re your spouse's RRSP, that's right. She can order a statement that covers the date of separation that will show what her RRSPs were worth at that time. There is normally a small fee for this. If you are served with a financial statement from your wife, please note that she is required under the Family Law Rules to provide full and frank disclosure in support of the claims made on her statement.

Your wife may eventually ask for a valuation of your pension. While you may already get pension statements from your employer, these are normally not accurate. Also, your wife would only be entitled to the pension value that was accumulated during the marriage. So, if you have been working at your company for 20 years and were only married for 10, your pension valuator would be able to calculate for you the accumulation over the past 10 years.

Lindsay

[wmike]

Unjust Enrichment

Interesting.!
Thank you Lindsay.

My pension has been evaluated already and we are at the point of drafting a Separation Agreement. I will re-mortgage my house and buy her out etc. I am just a little worried that "true" value of the RRSP will not be produced.

That RRSP value certainly comes into play when I make a equalization payment from my pension plan to her.

If, after the fact, I sense or discover (after signing a Sep. Agreement) that any values were falsely presented can you make claim under the
"unjust enrichment" clause to the courts to recoup some of those funds.??

Regards

[Lindsay]

Hi wmike,

RRSPs are a bit different than pensions. I think that if there was any falsely presented information, it would be due to an entirely separate undisclosed asset rather than an incorrect amount on an RRSP statement. I think you'll be pretty safe relying on the value on her RRSP statement.

If, however, you do learn of undisclosed assets, you may either make an amendment to the separation agreement (and as a result your wife would likely need to reimburse you with part of the equalization payment to made to her) or you can bring an application to the court asking for the equalization of net family properties. Your wife, through a financial statement, would be required to disclose all property owned or held at the date of separation and, as stated earlier, would be required to provide disclosure in support.

Lindsay