How does Family property division affect spousal / partner support entitlement in Alberta?

How does Family property division affect spousal / partner support entitlement in Alberta?

In Alberta, the division of family property and spousal or partner support entitlement are governed by several pieces of legislation and principles that interact in complex ways. Here’s an overview of how family property division can affect spousal or partner support entitlement:

Legislation Governing Property Division in Alberta

The Matrimonial Property Act and the Family Property Act are the primary laws used in Alberta for property division in divorce or separation in common-law relationships​. These acts focus on fair and equitable division of assets, which often translates to an equal division, but not always. All assets and debts accrued during the relationship are considered, regardless of whose name is on the title​.

Matrimonial Assets and Exempt Property in Alberta

Matrimonial assets include everything brought into the marriage after it begins, like assets, investments, and real property​. Exempt property, however, includes items possessed before the marriage, inheritances, gifts from third parties, personal injury lawsuit proceeds, and insurance proceeds. The original value of these exempt properties is not divided, but any increase in their value during the marriage is subject to division​.

Equitable vs. Equal Division in Alberta

Although an equal division of assets is common, the courts in Alberta are guided by the principle of equitable distribution, meaning a fair division is prioritized over an equal division. This can result in an unequal property division in cases where it’s deemed fairer, such as if one party has wasted marital assets​.

Impact on Spousal Support in Alberta

The calculation of spousal support in Alberta is influenced by several factors, including the financial means and needs of both spouses, the length of the marriage, the roles of each spouse during the marriage, and the effect of those roles and the marriage breakdown on their current financial positions​.

Types of Spousal Support in Alberta

Spousal support in Alberta can be compensatory, awarded for economic disadvantage caused by the marriage (like child-rearing impacting earning capacity), or non-compensatory, which is need-based support to address economic hardship resulting from the divorce​.

Timing and Legal Considerations

Failing to bring a divorce claim in a timely manner can jeopardize a claim for spousal support. In Alberta, a claim for the division of family property must generally be brought within 2 years of a decree nisi, a declaration of nullity of marriage, or divorce judgment. Delays can extend the period for claiming division of family property, leading to potentially complicated legal battles​​.

Unclear Limitation Periods for Support Claims in Alberta

The Alberta Family Law Act does not explicitly stipulate specific deadlines for seeking spousal or partner support. Recent case law suggests that the Limitations Act might not apply to claims for support by separated adult independent partners in Alberta, although this is subject to change based on future legal decisions​.

In summary, the division of family property in Alberta is guided by principles of fairness and equity, with the aim of equitable distribution rather than strictly equal division. This division can significantly impact spousal support entitlement, which is calculated based on various factors including the economic interdependence of the spouses and any economic disadvantages caused by the marriage. The legal landscape is complex, and specific circumstances of each case play a crucial role in determining the outcomes of property division and spousal support.