Divorce can be a costly endeavor. When a divorcing British Columbia couple shares a lot of assets, splitting up could mean having to rethink any retirement plans that may have been in place for quite some time. That process typically includes the division of property, and some financial guidance may be prudent.

Most assets in a divorce situation in Canada are divided equally. But the way in which they can be separated can be done creatively. Divorce changes the spending forecast, and older couples may need to keep that in mind moving forward.

Planning will give each a picture of the financial future. Some questions that could be asked are: Will the house be sold? Are there any children who will need support? How long will each be working? How do they view spending retirement years?

Couples also need to figure out the process for dividing Registered Retirement Savings Plans as well. When figuring the approximate worth of an RRSP, each is given a notional tax, taking into account an estimate of the retirement tax bracket of the holder. Income from an RRSP will be taxed as money is withdrawn. An actuary may need to come up with those figures.

Each divorce is different, and so each financial plan for a divorce will be unique as well. There is not just one way to split assets. Division of property can be complicated. In addition to enlisting the aid of a financial planner, it may be wise to get the advice of an attorney in British Columbia who is experienced in family law. He or she will be able to answer any questions regarding the legalities of a divorce situation as it pertains to finances.

Source: cbc.ca, “Divorce: splitting your assets means rethinking retirement plan – CBC News,” Accessed on Sept. 23, 2017

Lawyers in Coquitlam

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370
https://www.laughlinlaw.ca

Getting married, or committing to a common-law relationship, is a significant life decision. The strength and stability of the basis for such a permanent connection require different bricks to provide security. One of those is open conversations about money matters. The number of divorced couples who blame their breakups on financial disputes underscores the importance of such talks. While couple’s in British Columbia start their new shared lives as spouses, they might not realize that conversations about the division of property may follow soon if they fail to establish a firm financial understanding.

Advisors say stress and arguments about money can be avoided by discussing the following matters before the marriage or moving in together. Talk about the financial goals and expectations of each spouse. If one is frugal and avoids spending money while the other party loves restaurant meals and expensive clothes, disagreements are sure to follow if no agreements are reached in advance. The financial histories of each could be discussed, with full disclosure of the debts each party will bring into the relationship.

Each spouse must know the income of the other, and agreements about whether they will pool their incomes, or keep them separate is best resolved before the case is taken to child custody court. Couples who have no financial secrets and precise guidelines about how they will handle marital incomes and expenses are said to be less likely to disagree about money. Even those who are at different ends of the scale when it comes to financial personalities may be able to agree on workable money management plans for the family.

However, any British Columbia person who is the victim of a marriage that did not survive financial disputes may find that the division of property may be equally contentious. An experienced divorce lawyer may the appropriate person to provide support and guidance during this challenging time. A lawyer may even arrange divorce mediation that may help the spouses to agree on a settlement that will save time and money.

Lawyer Coquitlam, BC

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Source: globalnews.ca, “5 financial facts every couple should know about their partner before getting married“, Dani-Elle Dube, Accessed on July 15, 2017

More and more British Columbia couples enter marriages with already acquired assets in their respective names. For this reason, signing marriage contracts are becoming a more accepted process than what it was years ago. Marriage agreements give both parties the opportunity to discuss goals, expectations, and plans for the future. The contract will contain their agreements related to the division of property in the unfortunate event of a divorce, and although that is a thought often rather avoided, getting it out of the way can provide peace of mind.

British Columbia has laws that provide guidelines for property division by the court. Couples who want to create rules that differ from those that will apply under the province’s family law can do it by drafting a marriage or cohabitation agreement. However, advisors suggest people must not sign such a contract before fully understanding the legal requirements and applications of it.

Such a contract will determine how assets gathered during the marriage or common-law relationship will be divided upon separation — also in the event of one spouse passing away before separation. The income, debts, and assets of each partner must be fully disclosed, and the signing of the contract must not take place on the eve of the wedding. Each spouse must fully understand the contents of the contract and the consequences of signing it.

The court will also prefer each spouse to have independent legal counsel when signing a marriage agreement. All the plans worked out for the division of property can be disregarded by a British Columbia court if it finds the marriage contract to be invalid. This can happen if the court finds that one spouse did not provide full financial disclosure or if one party can show that he or she did not fully understand what the agreement entailed. A marriage contract that was not signed well in advance of the wedding ceremony can indicate coercion or duress, in which case it can be declared invalid.

Got any family law questions? Contact our family lawyers in Coquitlam:

Laughlin & Company Law
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Source: business.financialpost.com, “What you need to know before you say ‘I do’ to a marriage contract“, Laurie H. Pawlitza, Accessed on July 7, 2017

In British Columbia, any couple who lives together as a husband and a wife is treated in the same way married couples are treated. The number of people choosing to live together rather than get married increases every year. Cohabitating couples have children together, and some even buy homes together. However, the division of property in a common law breakup could be complicated.

Some say purchasing real estate is less of a commitment than marriage because it is easier to get rid of a house than it is to end a marriage. Although a common law marriage is legally accepted in certain contexts, it does not provide an automatic right to property. Married couples are considered partnerships, regardless of how they manage their finances. When a couple breaks up, all assets acquired during the marriage are divided, regardless of the individual contributions of the spouses.

This is more complicated with common law relationships that end — especially those that are acrimonious. Matters that will be considered include whether the couple had separate bank accounts and how long they cohabitated, among other issues. The manner in which the court typically determines the division of property in a common law marriage is more like an accounting exercise than an equal division of a partnership. When it comes to the house, it will be each partner’s contribution that will determine how it will be divided.

Common law spouses in British Columbia who are considering ending their relationship typically have many unanswered questions about their rights. The division of property could be an especially contentious issue if it is the end of a long relationship. The most practical step might be to consult with an experienced divorce lawyer who can provide answers and evaluate the circumstances, as well as offer ongoing support and guidance throughout the legal proceedings.

Coquitlam Family Attorney

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Source: business.financialpost.com, “When the only ring is on your keys: What common-law couples should know before buying a house together“, Danielle Kubes, May 26, 2017

British Columbia residents who are considering marriage or entering into a cohabitation relationship may find it difficult to broach the subject of domestic contracts. However, most people who make such commitments might have already accumulated some assets that will need protection if the marriage or common-law relationship ends. Without the protection of a marriage or cohabitation agreement that specifies the personal assets, some may be lost in the division of property.

Couples that get married can sign marriage contracts, and joint law partners can sign cohabitation agreements. Those entering into a second marriage typically bring many personal assets into the union. However, if, for example, the couple resides in a home that one of the two spouses owned before the marriage, the other spouse may have a claim on the property in the event of a divorce — if this was not specified in a marriage agreement. Mortgage lawyers will fight for both sides in this case, and it may end up being a long drawn process of court cases and arguments.

Another scenario to consider is a couple who moves in together, and the man verbally assures the woman that he will share all his assets with her. If they never record that promise in a cohabitation agreement and then comes the day that the relationship ends, the woman has no right to any assets that were pledged to her. Another type of domestic contract is a separation agreement that a couple can draft to record how they plan to deal with various issues that typically arise when a relationship ends. This can protect in the absence of a marriage or cohabitation agreement.

Some British Columbia couples that are considering marriage or cohabitation agreements may have questions about the legal requirements of such contracts. The most suitable step to take might be for each party to consult with an experienced family law lawyer who can answer questions and explain how such an agreement can protect the assets of each party during the division of property. The lawyer can assist with drafting a contract that will hold up in court if it is challenged.

Lawyers Coquitlam, BC

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Source: lukesplace.ca, “What are domestic contracts?“, Pamela Cross, Accessed on May 19, 2017

When British Columbia couples consider divorce, it might be a good idea to sit down and discuss how mutual debts will be handled before the divorce is finalized, rather than waiting to face the consequences afterward. With agreements regarding the division of property in place, those issues will not be left to the discretion of the court.  In divorce, debts will be treated in the same way as assets.

However, creditors are not interested in a couple’s marital status, and regardless of what a family law court orders, banks hold responsible those in whose names the debts are registered. When a marriage ends, and one spouse moves out, there’s typically less income to meet expenses such as rent, utilities, grocery costs and more. One spouse may be left with the cost of maintaining the family home, while the other could have the additional burden of child and/or spousal support. This may lead to an inability to keep debt payments current.

It is often advised that couples should close joint accounts and open personal accounts before the divorce gets underway, but they may not be able to settle the outstanding balances to enable them to close certain credit card accounts. Although a divorce will physically separate a couple, debts may keep them connected for some time. One option may be to apply for two separate bank loans to settle debts before the divorce, but only if both parties can afford the loan payments that will follow.

Any British Columbia individual who is heading for a divorce can find an attorney who can provide valuable advice along with support and guidance throughout the process, including the division of property. If the debt level is excessive, the possibility of filing for bankruptcy might be considered. This may allow the person to have a fresh start — both financially and personally.

Contact Laughlin & Company Attorneys if the division of property is a concern for you.

Source: globalnews.ca, “Heartbroken and bankrupt: Why divorce can destroy your finances“, Erica Alini National, April 17, 2017

Lawyers in Port Coquitlam, BC

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Like other provinces and territories, British Columbia has a matrimonial and family law act that governor provides guidelines for — the way assets and debts are divided in a divorce. While many couples have complicated estates that include stocks or bonds, family businesses, real estate and more, deciding what to do about a matrimonial home is often the most difficult part of the division of property. It could be an equally challenging process in a divorce of a couple with average assets.

In British Columbia, a couple must have been in a marriage recognized as valid under the law to require the division of the marital home. In most cases, a common-law relationship does not give one party the right to claim a share of a home in the other party’s name. In the eyes of the law, a home in which the couple lived together during their marriage must be subject to equal distribution in divorce because marriage is considered an equal partnership.

While certain rules exist for other assets that will only be divided if acquired during the union, special rules are in place for the marital home which may require the assistance of a real estate lawyer. Assets that belonged to one spouse before the marriage will remain that person’s property, except the family home will be divided even if it belonged to one spouse before the wedding. If one spouse wants to keep the residence in which the couple lived, he or she can buy the other spouse’s share or give up equivalent assets; otherwise, it can be sold and the money shared equally.

Regardless of the wealth of a divorcing couple in British Columbia, if there is a marital home that will be part of the division of property, it could complicate matters. However, under the guidance and support of experienced Laughlin Law Lawyers, the various options available can be evaluated. Understandably, decisions that could post-divorce financial stability must be made with care.

Source: FindLaw Canada, “What happens to a matrimonial home after a separation?“, Miriam Yosowich, Accessed on March 27, 2017

Lawyer Port Coquitlam, British Columbia

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Any person in British Columbia who is going through a divorce might have noticed that there is no shortage of advice from friends and family — and sometimes even from strangers. Although it is important to have the moral support of loved ones, it could make it more difficult to leave emotion at the door when negotiating the division of property. Most believe a divorce should not be tackled without professional guidance.

When building a team to provide divorce support, a financial advisor might be a valuable addition — regardless of whether the person was mostly uninvolved in handling the family finances or was in handling money matters during the marriage. Somebody who can explain every financial aspect can also help ensure the necessary original documents are gathered. Hard copies are typically required by the court. These will include tax forms as well as statements of bank accounts and brokerage firms.

Sometimes spouses try to outmaneuver each other by concealing assets. This is never a good idea because, in most cases, it can be traced back to the receiving spouse — to his or her detriment. Divorcing spouses sometimes make the mistake of continuing to live the lifestyle they had before. This can quickly lead to financial problems because there will normally only be one income to cover the same expenses as before the divorce.

When ending any marriage, it makes good sense to seek the support and guidance of an experienced British Columbia family law lawyer. Every divorce case is unique, especially when it comes to the division of property. A seasoned lawyer can protect the rights of the client throughout the proceedings, regardless of whether the divorce is negotiated directly, mediated or litigated.

Source: businessinsider.com, “7 things you should never do if you’re about to get divorced“, Emmie Martin, Feb. 8, 2017

Attorneys in Port Coquitlam

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370