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Assets and Marital Property

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  • Assets and Marital Property

    I have three scenarios I need some info on: (asking for a friend)

    1. Spouse A receives a significant damages award from work for harassment. Is this marital property or singularly owned by spouse A?

    2. Property inherited by spouse B before marriage, used for a down payment of what becomes the marital home. That home is subsequently sold for another home. Is that inheritance amount then subtracted?

    3. Property inherited by spouse B. It is put in their name and owned for a period of time that includes marriage. Is it included as marital property or the bequeathed value inheritance and increase in value considered marital property? What if it is inherited and then sold during divorce proceedings? Is the value still inheritance?

  • #2
    1. Probably not excluded, but the exact wording of the agreement/order would be necessary to determine. The exact wording from the Family Law Act is "Damages or a right to damages for personal injuries, nervous shock, mental distress or loss of guidance, care and companionship, or the part of a settlement that represents those damages.".

    2. No, the inheritance is likely lost. Matrimonial homes are divided without a date of marriage deduction. Never commingle an inheritance into a matrimonial home if you don't want to lose it. (or lose 50% of it)

    3. If inherited before marriage, then they get the date of marriage deduction like everything else they owned on the date of marriage. If inherited after marriage, it's excluded as long as it wasn't put into a joint asset (like the matrimonial home) or joint account. Selling during 'divorce proceedings' is irrelevant, what is relevant is the date of separation.

    The best advice you can give your friend is to have them work with a lawyer (even if on limited scope to answer these questions). There are too many additional facts necessary to properly answer. It should be investigated. Advice by telephone (as in one person to another to another) can be wrong because fundamental facts get misstated, lost or were not deemed to be important.

    Comment


    • #3
      Thanks Kinso. They have spoken to a few lawyers but two of these came up since that meeting. They do need to decide if they are going to proceed with divorce. It is a situation where they aren't happy but want to work on the marriage.

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      • #4
        Marriage counselling is a lot cheaper than divorce

        Comment


        • #5
          Originally posted by Kinso View Post
          Marriage counselling is a lot cheaper than divorce
          It is, but both parties have to agree to go and actually make a change. My friend is dealing with a spouse who takes everything personally and sees it as a means to criticize. The two of them need to make a few changes but neither one wants to listen to anyone saying anything to them. If I could, I would smack them both upside the head!

          Comment

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