How Long After Separation Can You Claim Assets?

by | Jul 26, 2024 | Divorce

Understanding Legal Separation

When we talk about legal separation, it’s important to know that it differs greatly from a legal divorce. In a legal separation, couples decide to live apart but remain legally married. Separation can apply to both marriages and common-law relationships. 

The date of separation is essential because it marks the point when couples begin to divide their assets and debts. This date is often used to determine the value of property and debt that needs to be shared.

Statutory Time Frames

Different time limits apply based on the relationship status and type of claim. For married couples in Ontario, you must make a claim for equalization (equal division) within 2 years after a divorce has been ordered, or 6 years from the date of separation.

These time limits also extend to unequal division claims. In some cases, property claims related to real estate can be made up to ten years after separation.

Common law couples in Ontario do not have the same rights and obligations regarding assets as married couples. They are usually subject to the standard time limit of 2 years, as listed in the Limitations Act.

Extension of Time Limits

Sometimes, it might be possible to extend these time limits. Courts can grant extensions in specific cases, like if there was a delay in discovering relevant information or if one party intentionally delayed proceedings.

To ask for an extension, we must provide a significant and solid reasoning as to why the original time limit wasn’t met. This process is complex and court approval is not guaranteed. Consulting with a family lawyer can help navigate these exceptions and understand legal options.

Asset and Property Division

When a relationship ends, dividing property and assets can be a complex process influenced by several factors like family law, exclusion rules, and asset types.  In Ontario, this process is governed by the Family Law Act. According to this legislation, the value of any personal property that the couple acquired during their marriage must be divided equally when the marriage ends, which is known as the equalization of net family property.

The act defines property to include assets such as:

  • homes
  • cars
  • businesses
  • furniture
  • pensions
  • other investments.

There are, however, exceptions to this equal division rule. Property that was inherited or received as a gift from someone other than the spouse, personal injury awards, and insurance payments (unless they are for family property) are not typically considered marital assets, so they are excluded property from division. Also worth noting is the matrimonial home. By law, the full value of the matrimonial home must be shared between partners, even if one individual owned the home before the marriage or if it was received as a gift or inheritance.

Alves Law – Get Experienced Legal Support In Your Corner

Having to deal with the process and aftermath of a divorce is difficult, add to that the complexity of property division procedures and things can get overwhelming in a hurry. That’s where Alves Law comes in. We provide you with the legal know-how you need to navigate these situations with confidence.

Whether you’re in need of a property division lawyer, spousal support lawyer, and family lawyer, we can help. Don’t go it alone — reach out today, schedule a consultation, and discuss your case with us. 

Frequently Asked Questions

Can a former spouse claim property acquired after separation but before the divorce is finalized in Ontario?

A spouse can claim property acquired after separation if it was bought with joint funds or if it falls under the rights each spouse has until the divorce is finalized. The specifics depend on the circumstances and existing agreements. 

Does a common-law partner have rights to property upon separation?

Pursuant to Ontario’s Family Law Act, common law partners are not automatically entitled to such division unless it has been explicitly agreed upon or established through legal action. Each individual in a common-law relationship is only entitled to whatever that individual brought into or purchased during the relationship, subject to a claim for unjust enrichment. This is a complicated process and we encourage you to contact Alves Law to discuss the specifics of your circumstances.

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