Net Family Property
The Family Law Act states that married spouses must equalize their respective net family property when there has been a separation. As a general rule, a spouse is not obligated to give to his or her spouse any specific property or specific interest in property if the spouse does not have an ownership interest. The matrimonial home or constructive trust may be an exception.
The date of separation is also described as the "valuation date"; the date that spouses must value all property and calculate their respective net family property. The net family property is calculated by subtracting the value of the debts, liabilities and assets on the date of marriage from the value of the debts, liabilities and assets on the date of separation. Some property, such as gifts from third parties, inheritances or damages for personal injuries are excluded from net family property.
The spouse with the higher net family property must pay one-half the difference to the spouse with the lower net family property. This is called the equalization payment.
Spouses can contract out of the calculation of and equalization of their respective net family property. This may be accomplished through a marriage contract.
An application for an equalization payment shall not be brought after the earliest of two years after divorce, six years after separation or six months after the death of one of the spouses, unless a court grants an extension to the time limitation.
If you have any questions about your rights and obligations on separation, or any other family law questions, please do not hesitate to contact Brad Smith at 625-8891 or email him at or contact one of the other members of our Family Law Group:
| Paul Jasiura | (807) 625-8881 | email wmnlaw%23com|pjasiura |
| Deborah Humphreys | (807) 625-8894 | email wmnlaw%23com|dhumphre |
| Brad Smith | (807) 625-8891 | email wmnlaw%23com|basmith |
| Fhara Pottinger | (807) 625-8877 | email wmnlaw%23com|fpotting |
