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ARTICLE · 28 NOVEMBER 2019

Till Debt Do Us Part: Dividing Liabilities

Watson Goepel LLP
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(November 15, 2019, 9:10 AM EST) -- When most people think of family law cases, their minds turn to the dilemma of fairly dividing the family assets (in other words, "matrimonial property")...

CanadaFamily and Matrimonial
Laurence S. Klass
Laurence S. Klass
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(November 15, 2019, 9:10 AM EST) -- When most people think of family law cases, their minds turn to the dilemma of fairly dividing the family assets (in other words, "matrimonial property"): the house, the car, the pensions, perhaps the heirloom grandfather clock in the dining room. The flip side of the coin, however, is frequently less straightforward. What is the best approach to untangling not just the assets, but the liabilities?

Given s. 81 of the Family Law Act, SBC 2011, Chapter 25 (FLA), there is a presumption that on separation, each spouse is equally responsible for family debt. The definition of "family debt" then becomes central to the overall liability imposed on each spouse.

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