The divorce process is quite difficult to deal with for any couple and coming out of it with a desired outcome demands help from an experienced family lawyer. Divorce is the end of a relationship and the beginning of a future and separating couples need financial securities to maintain their quality of life.
When you have no clue how to deal with the legal divorce process and what steps you should take for the best possible outcome, relying on your lawyer’s would be the best option.
One of the many things that an individual facing divorce should do is to settle on the assets and debts. To make the property division process smooth, it is essential to prepare the list of your all assets and debts. You should have the full list of your finances in front of you, including both shared and independent properties and debts.
Assets and Debts During Divorce
Why is it necessary to list out your finances:
As per family law, proper knowledge and understanding of the investments help you reach a fair divorce settlement. The settlement is the key to a secure financial future. One major mistake in the process and you may end up adding more struggle in the current situation. If you intentionally hide or falsify your financial information, you should be ready for severe consequences, which may include the charge of contempt of court.
If you have decided to file for divorce or you are in the initial phase of the divorce process then you should know how to list out your assets and debts. It is better to have an experienced attorney by your side to ensure the fair division of assets and liabilities.
General Overview on Property Division for divorce in Canada:
The law considers marriage as an equal partnership. Once the divorce is filed, the law gives equal importance to the contribution of both the partners in marriage, even when there is only one partner is earning the family income. When the marriage ends and the partners are separated, the law follows this general rule for property division.
- The property acquired during the marriage and still in possession at the time of separation should be equally divided between the spouses. If a spouse has brought the property into the marriage, then he or she is entitled to keep it, but the increased value of that property during the marriage must be shared. This is applicable in case of most family assets, but the matrimonial home is not included.
The law considers a matrimonial home as a place where both the partners are residing at the time of divorce. The rights of owning the matrimonial property are viewed differently from other types of properties. If you are the owner of the marital property at the time of marriage, you are not entitled to get your separate right over the property at the time of separation, regardless of the names on property’s papers. Both spouses are entitled to reside in the house.
This is a general overview, and laws may vary depending on the territory or province. To know which rule applies in your region, you should approach a reliable divorce lawyer in your city.
Listing your assets:
Your properties, possessions, bank accounts, businesses, and investment should be included in the list. Anything that has cash value should be on the list. Documenting these assets is essential before filing for the divorce. If you have a large number of assets in your possession or you have invested in stocks, then it might be difficult for you, so if possible, keep your lawyer with you during the documentation.
- You can start with your personal bank accounts, joint bank accounts, retirement accounts, and also credit cards.
- The second thing to focus on is your real estate, which includes your marital home, vacation home, incomes properties, land, and so forth.
- The third thing to include is your vehicles. Cars, motorcycles, boats, trailers, and other vehicles should be on this list.
- Your every investment should be on the list, including retirement funds, stocks, life insurance accounts, bonds, etc.
- If you own a company, then make a list of all your company’s accounts and properties. You might also need to know the value of your business. It is important that you discuss it with your attorney.
- Any personal belongings that have high value should be on the list. Jewelry, antiques, paintings, etc. should be valued by an appraiser. It needs to be discussed with the lawyer.
Just like your assets, you should list down all the debts you have accumulated during the marriage.
- Credit card bills
- Personal loans
- Auto loans
- Home loans
- Equity loans
- Medical bills
- Education loan
- And any other type of loan
Debts acquired during the time of marriage and debts that are acquired before marriage are considered as community property.
Everyone has a different financial portfolio, and it is advisable that you retain a family lawyer for a better understanding of property and debts division. You should hire an experienced divorce attorney who can give you proper assistance throughout the process and provide the best possible outcome.