Category: Property Issues
Property Division in Toronto Divorces: What You Need to Know
Property Division Laws in Ontario
Under Ontario’s Family Law Act, property division is governed by principles designed to ensure fairness in the distribution of marital assets. Unlike some jurisdictions that adopt a community property approach, Ontario uses a method of “equalization,” a form of equitable distribution. This process does not necessarily mean that property is divided equally, but rather that the value accumulated during the marriage is divided fairly.
Protecting Your Assets with a Skilled Toronto Lawyer
Challenges Faced by Business Owners
Business Valuation: Accurately determining the fair market value involves understanding not only the current financial status but also the future earnings potential, market position, and intangible assets of the company. Skilled Toronto lawyers, in collaboration with business valuation experts, ensure an accurate and fair assessment.
Dividing Business Assets: After establishing the business valuation, dividing business assets becomes a multifaceted challenge involving legal, financial, and emotional considerations. Strategies such as one spouse buying out the other’s interest, selling the business and dividing proceeds, or continuing co-ownership require careful consideration and strategic planning. Guidance from a skilled divorce lawyer is invaluable in navigating these decisions.
How Toronto Divorce Lawyers Handle Complex Asset Division
Complex Asset Division
Divorce proceedings can turn stressful and emotionally charged, with the division of assets often standing out as a particularly contentious issue. In Toronto, as in many jurisdictions globally, Toronto divorce lawyers frequently grapple with the nuances of complex asset division.
Types of Complex Assets
- Businesses: Dividing business assets emerges as a significant challenge. Businesses, especially those family-owned or closely held, necessitate a thorough evaluation to ascertain their true value and to determine a division strategy that minimally disrupts operations.
- Investments: This category includes stocks, bonds, mutual funds, and retirement accounts, whose values are subject to market fluctuations, complicating equitable division at any moment.
Divorce: Division of Property
One of the main things that causes a lot of frustration during a divorce is the; ‘who gets what’ question. For some couples the division of property can get very messy while for others they are able to deal with it quickly and easily. Under Canada’s constitution each province and territory is responsible for laws regarding the division and or equalization of family or marital property, and these laws can vary from one province or territory to the next. This article will consider a basic understanding of property division in a divorce in Canada giving a general overview of Ontario regarding the division of property.