When couples divorce in Mississauga, they also have to settle important matters with it. The most important divorce-related matters include parenting, property/asset division, and support. Nevertheless, the divorcing parties can have a misunderstanding regarding asset division. Equal split of assets may seem the ideal solution to people who don’t have any knowledge of this matter. Still, many divorcing spouses often face confusion in this matter; hence, ask a divorce lawyer in Mississauga about divisible assets. Which assets need to be divided, and which can be withheld from divorce proceedings? Let’s have a look at different types of assets related to a divorce to find an answer to this question:
Joint Assets:
Spouses have to divide joint assets evenly with a divorce no matter when they acquire them. This rule also applies to properties, such as houses and debt, in addition to finances, like stock portfolios. Additionally, two partners may not have the same principal relationships in joint assets. Nonetheless, the division of joint assets will follow the same rule for people, such as:
- Two business partners who jointly run a business
- Two neighbours who went evenly on a lawnmower
Hence, the division of joint assets in a divorce relies on a hard and fast rule.
Personal Assets Possessed During Marriage:
The divorcing parties also have to divide personal assets possessed during the marriage in the resolution of a divorce. Personal assets acquired during marriage include debts accrued alongside acquired assets over the course of the marriage. Spouses have to divide these assets equally regardless of the reason behind the termination of a marriage. Personal assets possessed during the marriage can include home, car, business, furniture, pension, and money.
Personal Assets Possessed Before Marriage:
Property you may own before marriage with an increase in value during the marriage will follow division following its increased value. Additionally, the same rule applies to a family home where you lived with your spouse. You and your partner will share the same value with its division in a divorce, even if:
- one of you possessed the home before marriage
- you received home as a gift
- you inherited it
Money owed to each spouse is termed as an equalization payment or an equalization of net family property. Moreover, assets leading to business growth and dividends earned from investments follow the count towards the divorce proceedings but not an original value.
Assets Acquired While Cohabitating:
According to a divorce lawyer in Mississauga: many people have a misconception that assets acquired with cohabitating before they marry follow the same procedures as those possessed during the marriage. Often, it’s not the case for the division of assets. Moreover, THE SUPREME COURT OF CANADA MADE A DECISION IN 2022 regarding this matter. It concluded assets possessed during a common-law partnership before marriage aren’t addressed under the Family Law Act. In addition, if any of the parties have an interest in assets based on fairness, they can file an application. The parties will need to file an application on trust law principles.
Get Legal Advice When You Divorce in Mississauga
The separation or a divorce is an emotional and intricate process. Nevertheless, you may need to take a step forward and terminate your marriage relationship with a divorce for any reason. Besides, you don’t understand Divorce and Family Law that divorce and family lawyers in Mississauga comprehend all-inclusively. You can take the wrong steps and lengthen your divorce proceedings without legal advice. Additionally, you will need to settle matters, such as property division, support, and parenting with your spouse in a divorce.
A divorce lawyer can help you better understand your rights around property division, support, and parenting. Hence, you must hire a reliable divorce attorney in Mississauga to get legal advice for a divorce. Moreover, family lawyers of Divorce Fast are in good standing with the Law Society of Ontario. Hence, the divorcing couples may choose to hire a divorce or family lawyers of Divorce Fast.
You can also benefit from the free initial consultation with the lawyer of a reputable law firm in Mississauga. Make sure you have your questions ready for an attorney while you meet an attorney. It will aid you in choosing the right divorce lawyer for your case.
Conclusion
When couples divorce in Mississauga, they also have to settle their divorce-related family matters. Many divorcing spouses also face confusion regarding asset division in a divorce, specifically when the division involves calculations. Here is how different types of assets in a divorce are divided between the parties:
- Each partner receives an equal share of joint assets in a divorce.
- Spouses need to divide personal assets they acquired during marriage evenly irrespective of the reason for terminating their marriage.
- Parties in a divorce have to divide assets they possess before marriage with increased value as an equalization payment.
- Common-law partnership before marriage doesn’t fall under the Family Law Act. However, parties can file an application if they have an interest in assets based on fairness on trust law principles.
Lastly, the divorcing spouses shouldn’t overlook seeking legal advice from a divorce lawyer in Mississauga when they divorce.