Separating from a spouse is often emotionally taxing, and navigating the practical aspects of dividing property and debt adds another layer of complexity to an already challenging situation. Whether you and your spouse were married or unmarried, resolving the division of property and debt is crucial.
WHO IS CONSIDERED A “SPOUSE”?
For the purposes of dividing property and debt, two people are considered spouses if they were either married or living in a “marriage-like relationship” for at least two years. This might seem simple at first but can quickly become complicated. Courts have found that the period of living together does not necessarily have to be continuous, such as in cases where it has been interrupted for work or health reasons. It is possible for people to co-habit while maintaining two homes, if there was a rational reason for doing so.
The date a spousal relationship began is either the date of marriage, or the date that a couple began living in a marriage-like relationship, whichever is earlier.
FAMILY PROPERTY AND DEBT
The first step in determining how to divide property and debt is to establish what constitutes family property and family debt.
All property owned by either or both spouses on the date of separation is considered family property unless it is excluded. This might include the family home, bank accounts, pensions, interests in businesses, and RRSPs. Likewise, all debt owing by either or both spouses on the date of separation is considered family debt unless it is excluded.
There is a presumption that entitlement to family property and responsibility for family debt are to be shared equally between both spouses. This remains true regardless of whether the spouses used or contributed equally to the property or debt.
… Read the full article here: Dividing Property and Debt Upon Separation