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How separating couples divide debt in British Columbia

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On behalf of Laughlin & Company Lawyers Mediators posted in Division of Property on Thursday, April 23, 2015.

Whether or not you want to, the fact of any ending relationship is that if you have debt, you need to deal with it. Not taking the time to review shared debts or whose name is in debt can lead to bills not getting paid, and this can ruin your credit rating.

If you’ve been living together with your significant other in a marriage-like situation, then you are going to be held to the same standards for debts after you separate as married people would be during a divorce.

In British Columbia, the law treats those who have lived together for two years or longer exactly the same as someone who is married. Your debts are going to be shared equally, no matter whose name they’re in. The family property also is shared equally, so if you had a home together, be prepared to split up your assets.

When you’re living together, you can make an agreement that will allow you to divide your debts unequally. This agreement works similarly to a prenuptial or post-nuptial agreement, which prevents you from taking on certain debts that are created during your relationship or those brought into your relationship.

People who you owe money to, like your creditors, can normally only collect debts from the person who signed for the debt, so in cases where you have private credit cards or loans, you’ll need to pay those back. However, if you signed a lease for an apartment with both of your names, then you can be held jointly responsible and will need to sort out the debt one way or the other.

Source: Legal Services Society, “Dealing with debts after separation (for married and common-law couples),” accessed April. 23, 2015

Real Estate Lawyers Coquitlam BC

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

Home ownership and divorce in British Columbia

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On behalf of Laughlin & Company Lawyers Mediators posted in Division of Property on Wednesday, April 1, 2015.

Couples who are preparing to divorce in British Columbia will be required to divide their marital property. In many cases, the couple will have purchased a home. There are several important considerations regarding how to handle the home in a property division.

In some cases, one of the spouses will want to keep the home. Those who are in this position will need to think about whether or not they can truly afford to do so on their own. If there is equity built up in the home, they will most likely be required to buy out the other spouse’s share. If the home is in both spouses’ names, then the person keeping the home will probably need to refinance the mortgage in their own name, meaning that they will need to have the financial ability to do so.

Some couples decide selling the home is the best option. This involves determining whether there will be enough left over after selling the home, paying the selling costs and splitting any money left after paying off the mortgage with the other spouse. People should make certain the money received would be enough for them to find another place to live.

Asset and debt division can be very complex and can involve a lot of critical thinking and planning. In some cases, people who are preparing to divorce may benefit by seeking the advice and counsel of a family law lawyer who can help the client to secure appraisals of businesses, artwork and other properties and locate assets that may have been concealed by the other spouse. A lawyer can also work on the negotiation of a comprehensive settlement agreement that covers these and other issues.

Real Estate Lawyer in Coquitlam BC

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

Property division rules for common-law couples in B.C.

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On behalf of Laughlin & Company Lawyers Mediators posted in Division of Property on Monday, March 23, 2015.

More and more couples in British Columbia are choosing to live together without getting married. Government statistics reveal that the growth rate of common law families is three times that of families with married parents, and this demographic trend was one of the primary reasons that legislators passed the Family Law Act in 2011.

One of the key components of the Family Law Act addresses the rules concerning property division for common-law couples. Assets of cohabiting couples who have lived together for at least two years are now treated in the same way as the property of married couples, and these assets will generally be divided equally if the couple separates. As with married couples, the rules apply to property acquired during the relationship and not to property that was owned beforehand, and common-law couples are free to enter into agreements if they wish to establish different criteria.

Before the passage of the Family Law Act, common-law families in British Columbia faced the prospect of lengthy and potentially costly litigation if they were unable to reach an amicable agreement regarding the division of their assets. The law also brought the family law in the province into line with estate and income tax law, which already treated married and unmarried couples in the same way.

Discussions over property division often become contentious, and the sentimental attachments formed with certain assets. An experienced family law lawyer may be familiar with the issues that might make arriving at a compromise difficult, and they could recommend mediation or private negotiations to help couples reach an amicable agreement. When necessary, that lawyer might suggest litigation as a possible resolution to a dispute.

Real Estate Lawyers in Coquitlam BC

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370
https://www.laughlinlaw.ca/

Company offers couples divorce insurance

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On behalf of Laughlin & Company Lawyers Mediators posted in Division of Property on Tuesday, March 17, 2015.

When most couples tie the knot, they generally do not plan to get divorced at some point in the future. As a result, a large number of married couples fail to plan for the possibility of the end of their marriage. Divorce insurance, a type of insurance that provides individuals with financial payouts in the event of a divorce, may be an effective way for British Columbia residents to avoid the overwhelming legal bills often associated with the end of the relationship.

According to Statistics Canada, in 2008, 38 percent of couples ended their marriages before their 30th anniversary. Although the concept of divorce insurance is not particularly romantic, it is often practical, and the financial protection it provides may come in handy. SafeGuard, the North Carolina-based company and the sole provider of this type of insurance, known as WedLock, hopes to eventually provide couples with benefit payouts when they reach their 25th anniversaries.

Divorce insurance is different from a prenuptial agreement, and this form of insurance can be worked into such an agreement. The developer of WedLock stated that he is not promoting divorce. He believes that since cars, homes and the well-being of individuals are often insured, it seems obvious that marriages should be provided with financial protection as well.

While divorce insurance may augment an individual’s financial situation during a divorce, the process can still be difficult. When couples divorce, they often have to deal with subjects like child custody, property division, and alimony. Since a lot is at stake when it comes to these subjects, it is not uncommon for spouses to work with a lawyer to protect their interests. By working with legal professionals who understand the technicalities of family law, individuals can work towards the results they desire.

Coquitlam BC Real Estate Lawyer

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370
https://www.laughlinlaw.ca

Property division in British Columbia

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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

Interim division of property prior to a final divorce order

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

When a couple in British Columbia chooses to divorce, both parties are considered responsible for martial liabilities and entitled to marital assets, according to provincial statutes. Prior to the finalization of a divorce order, each spouse is entitled to apply to the courts for an order for an interim distribution of marital, or family, property. If granted, the order can provide funds to pay for legal proceedings, dispute resolution or to obtain evidence or information in support of an application to a court or dispute resolution.

In addition, the court may make an order that grants a spouse use or possession of the specific personal property, which is stored at the family residence, or exclusive occupation of the family residence. Such an order will be granted for a specific time and can apply to either leased or owned property. A spouse is not permitted to make significant alterations to the property during that interim period. Additionally, the court may order the postponement of any planned sale or partition of the property while the interim order is in effect.

An interim order can help provide financial stability for a spouse until the divorce agreement is finalized. A lawyer with a background in divorce cases can explain how an interim division of property order may be obtained and could help with the application process. Once the order is put into place, the spouse can move on with the divorce process.

A lawyer may also help negotiate a fair divorce agreement that is in the best interest of the spouse and his or her children. Once an agreement has been reached, it might be subject to approval by a judge. In most cases, judges will support an agreement as long as both parties are in favor of it.

Coquitlam BC Real Estate Lawyers

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

Dividing collective property in a divorce

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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

Property Division in British Columbia

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On behalf of Laughlin & Company Lawyers Mediators posted in Division of Property on Thursday, November 20, 2014.

In a divorce case or a case in which the parties are unmarried but have lived together for two or more years, people in British Columbia can expect to go through a property division. Under the rules, property is categorized as family property or excluded property.

Family property is subject to division under the law. Unless the parties have an agreement otherwise, all family property will be divided equally between them. Family property includes the shared home, bank accounts, RRSPs, investments, insurance policies, pensions, business interests and any increased value of excluded property that occurred during the relationship. Courts will sometimes divide family property unequally between the parties if the court determines that doing otherwise would be significantly unfair. Practically speaking, however, courts divide family property equally in most cases.

Excluded property includes the property one person owned prior to the start of the relationship. It also includes any gifts or inheritances given to one person but not to the other during the relationship. Finally, excluded property also includes certain types of damage awards, trust property and insurance proceeds.

When people are separating or divorcing, they may wish to try to come to an agreement with their former spouse or unmarried partner regarding the division of their property. Property division can be difficult to figure out, however. It is often difficult for people to be able to reach an agreement regarding a property division. In those cases, people may benefit by speaking with a lawyer who practices in the area of divorce and family law. A lawyer may be able to help locate hidden assets, devise a proposed property division agreement and advocate for his or her client’s rights in court at contested hearings.

Source: Justice BC, “What happens to family property when spouses separate?“, November 20, 2014

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

How are pension plans divided in a divorce?

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On behalf of Laughlin & Company Lawyers Mediators posted in Division of Property on Thursday, November 6, 2014.

In a British Columbia divorce, the value of a pension is split in a specific fashion. For local defined contribution plans, a spouse may have his or her share of the pension withdrawn into a separate account. He or she may also decide to keep his or her share of the pension inside of the plan under the same terms and conditions that the member must abide by.

For defined benefit plans, a separate pension plan may be created for the other spouse who is entitled to a share of pension benefits. A commuted portion of the pension may also be transferred to the credit of a limited member. In the event that a member decides to terminate participation in a defined benefit plan, the administrator of the plan may agree to continue to administer any separate pension created.

In a hybrid plan, it may be possible for a spouse to take benefits in any manner available to the member. In some cases, it may be possible for the spouse to choose how to treat the account assuming that the administrator consents to the spouse doing so. These scenarios assume that the pension has not yet commenced. If it has, a spouse may be entitled to a proportionate share of benefits paid out until the plan is terminated or the individual dies, whichever comes first.

Among other property, the value of assets of a pension is eligible for division. It may be worthwhile to hire a lawyer to determine how to divide any pension plan that exists according to provincial law. In addition, a lawyer can help an individual get their fair share of any other assets during property division. None of the information in this article should be taken as specific legal advice.

Source: CanLII, “Family Law Act, SBC 2011, c 25, Part 6 — Pension Division“, November 01, 2014

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

Learning about division of property

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On behalf of Laughlin & Company Lawyers Mediators posted in Division of Property on Wednesday, September 10, 2014.

British Columbia has certain default provisions in place to help establish how marital assets can be fairly distributed between each spouse in a divorce. For spouses who do not wish to resort to these default rules, a prenuptial or postnuptial agreement may be put in place. In the absence of such an agreement, marital property and debt must be divided according to established rules.

One general rule is that nearly every type of asset is subject to division, including the increased value of assets that were owned before a spouse was married. There are a few exceptions, however, such as inheritances or gifts that were received from a party other than the other spouse. While courts are bound to adhere to default rules in many situations, spouses may be able to reach an alternative agreement that works best for them through the process of mediation or private negotiation. In addition to dividing specific assets, spouses may also consider whether spousal support should be included in their agreement in order to help compensate for the non-financial contributions of one of the spouses.

One of the most important components of the divorce process is evaluating assets that must be divided so that each spouse winds up with about the same value of assets as the other. Certain assets may be more difficult to evaluate, such as businesses. Our firm focuses on other practice areas, such as commercial law and estate planning, so we are able to consider how different financial arrangements may affect clients’ lives in the future.

Dividing property can be a complex process that may require the testimony of experts regarding the value of certain assets. If you would like more information on the legal rules regarding the division of property, please read our page on this topic.

Source: Laughlin & Company, “Division Of Property“, September 04, 2014

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