The Net Family Property (NFP) calculation involves determining the value of each spouse’s assets and debts at two key points in time: the date of marriage and the date of separation. This is the total value of each spouse’s assets minus their debts on the date of the marriage. It includes everything they owned at the time they got married.

The value of each spouse’s assets and debts on the date of separation is the total value of each spouse’s assets minus their debts on that date. This includes all property and debts accumulated during the marriage. To calculate each spouse’s NFP, you subtract the marriage date total from the separation date total.

An equalization payment is a financial settlement made during divorce proceedings to ensure a fair distribution of marital assets between spouses. It balances the net family properties (NFP) of both parties, ensuring each spouse receives an equitable share of the assets accumulated during the marriage. This process considers specific asset types such as the matrimonial home, household items, pensions, debts, gifts, and inheritances.

For example, if Spouse A has an NFP of $200,000 and Spouse B has an NFP of $100,000, Spouse A would pay Spouse B $50,000 to equalize the distribution of assets. This ensures that both parties leave the marriage with a fair share of the marital assets.

As of 1 January 2020, property rights for common law spouses also known as adult interdependent partners are the same as married spouses. Although not technically married, Alberta’s family law system acknowledges common law couples as living in an interdependent relationship, which entails legal obligations upon separation.

In Alberta, property is generally divided 50/50 upon separation, except for exempt property such as a home owned before entering the relationship. However, spouses who have established a separation of assets plan beforehand are not automatically subject to the 50/50 division. This plan can be created through a cohabitation agreement or a prenuptial agreement. Our lawyers strongly recommend creating such a property division plan before entering a common-law relationship.

Property division during a divorce or separation often involves valuing complex assets such as businesses, pensions, and investment properties. Our bright property division lawyers can accurately assess these assets to ensure a fair distribution.

For example, if one spouse owns a business, the lawyer can work with financial experts to determine its value and negotiate a fair share for the business interests of the other spouse, if necessary. This expertise helps prevent undervaluation or overvaluation, ensuring an equitable division.

Our property division lawyers ensure your rights and interests are protected throughout the process. They can identify and argue for the exclusion of specific assets, such as inheritances or gifts, from the marital property pool.

For instance, if you received an inheritance that was used to purchase a family home, your lawyer can argue that the inheritance portion should not be divided. This protection is crucial for preserving your financial stability post-separation.

The legal complexities of property division can be overwhelming without professional guidance. Our property division lawyers understand the intricacies of family law and can navigate the legal system efficiently.

They can draft and review settlement agreements, represent you in court, and ensure that all legal procedures are followed correctly. This comprehensive legal support helps prevent costly mistakes and ensures a smoother resolution.

Please consult with our dedicated property division lawyers about obtaining an equitable division of your marital property. Our knowledgeable team at DLegal is focused on family law solutions, and we can help you navigate the complex process of property division.