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llic next l".1lltll\ [an .-\ct came into tott‘c tit Ontario on March I, “No. Hmtctei. it 'I\ rctmacme to June 4, NSF. The act deals with the leSlUtl ot‘ ptopcrl) upon marriage break- doun .tnd support. FAMllh PROPERTY This new protision ol “tth famin ptopetty“ creates a community of property concept which most people tented that the old law used to do. The old .tct referred to “fatttiljt assets” to be shared equally and other assets to be shared b_\ proof of contribution. This putt of the act is concerned with the rights of a spouse teither a man or .1 human) legally married to the other. i. Dissolution of Marriage Exer) marriage will eventually dissohe: a. b_\ final physical separation, or b. b} di\otct= tor declaration of nul- lll)l, or c. by death Until marriage dissolves (except when selltng a matrimonial home). there is no problem “1th the legislation. 1. Valuation of Property On dissoiutton. the property of each Spdthd Will be cxaluated as of the day a. of the separation, or b. of the decree of divorce (or declaration of nullity), or c. the day before the death whtchcter is earliest. 3. Financial Entitlement The spouse (or survtt'tng spouse) it hose property is the lesser of the two is entitled to be paid one~half the dtt‘l'crencc betnecn the two, if claimed. a. Wtil‘lll’l six years of the date of the final separation, or b_ within two years after the judge- ment in divorce or nullity, or c. Within six months after the death. 4. Immediate Relief Where one spouse is “improvidentiy depleting” assets, the other spouse can seek immediate relief. Ralph Winslade 5. Terms of Payment The Court can delay the payment of the amount owing for up to to years and "no order shall be made rcquir~ ing sale of an operating business or farm, or seriously impairing its operaâ€" tion. . .unless there is no reasonable alternative method of satisfying the entitlement." 6. Property Excluded The property of each spouse “called net fatnin property" does not include: a. property brought to the marriage by one spouse b. property acquired by gift or inheri- tance from a third party after the marriage the income from that property if the giver of the property has speci- fically excluded it. d. damages collected for personal injury e. life insurance proceeds f. property (other than matrimonial home) into which any of the above four kinds of property can actually be traced. F- 7. Property Included The property of each spouse, called “net family property", generally means the net value of all property bought during marriage, any gain, during the marriage on property brought to the marriage by one of the spouses. Examples include pension plans. debts owing to one of the spouses. livestock, crops, farm imple- ments, automotive equipment, stocks and bonds, land and buildings, interest in partnerships, and shares in corpora- tions. The only deduction made is for debts against property when entering and leaving marriage. 8. Marriage Contracts can be used to contract out of the provisions of the act. it IS really a type of partnership 12 H dc C July. August, September I987 agreement that indicates how the “net family property" will be divided Upon a marriage break down. It can also be considered a separation agreement established at the time of entering in. stead of leaving a marriage. The marriage contract is fairly common in second marnnges. Each Spouse is keen to be sure that his or her family receives its entitlement should the marriage end. Some farmers are stan- ing to insist on a marriage contract when their child, who is part of the farm business, gets married. Remember that someone who is forced into a contract may refuse or may contest the contract later on. 9. Death In the case of death, the surviving spouse must decide to accept the terms of the will and proceeds from life insurance policies 0R within six months claim under the provisions of the act. In most cases, everything is left to the surviving spouse anywav so these is no problem. A life insurance company may require a beneficiary spouse to sign a form indicating that he/she will not claim under the act before proceeds are released. AREAS OF CONCERN The new act is causing concern in a number of areas. 1. Spousal Partnership Many are unwritten and conlesitig as to who owns what. If knowing pro- vides any peace of mind, a written agreement is preferred. It is also important evidence for tax purposes that a partnership actually exists. it the partnership refers to the break- down of marriage it may be a type of marriage contract regarding the ownership of the partnership. 2. Wills and Estate Planning When one spouse has adequate resources the other spouse may direct assets directly to children. The su mvâ€" ing spouse mayclaim under the law rather than-abiding with the will. A marriage contract would help to .