In Calgary, Alberta, Canada, family property is governed by the Family Property Act, which outlines how property is divided between spouses or adult interdependent partners upon the breakdown of their relationship. This act replaced the Matrimonial Property Act in January 2020. Understanding what constitutes family property is crucial for couples navigating separation or divorce. Here’s a detailed overview:

Definition of Family Property in Alberta

• Real Estate: This includes the matrimonial home and any other real estate owned by one or both spouses. The matrimonial home, where the family resided, holds special significance.
• Personal Property: This encompasses a wide range of items such as vehicles, furniture, appliances, and personal effects.
• Financial Assets: Bank accounts, investments, pensions, and retirement savings fall under this category. It’s important to note that changes in the value of these assets during the relationship are also relevant.
• Business Interests: Shares in businesses or partnerships can be considered family property, especially if they were acquired or grew in value during the relationship.
• Debts and Liabilities: Family property isn’t just about assets; it also includes debts and liabilities incurred during the relationship.

Exemptions and Exclusions from Family Property in Alberta

• Pre-Relationship Assets: Assets owned by one party before the relationship often remain their exclusive property.
• Inheritances and Gifts: Inheritances and gifts received by one spouse are generally excluded, unless they have been integrated into the family’s finances.
• Insurance Payments: Certain insurance payments, especially those related to personal injury, are often excluded.
• Court Awards and Settlements: Awards from lawsuits or settlements may be treated differently, depending on their nature and purpose.

Valuation and Division of Property in Alberta

• Valuation Date: The value of family property is typically assessed as of the date of trial or settlement, not the date of separation.
• Equal vs. Equitable Division: While the starting point is an equal division of family property, the court can order an unequal division if it deems it just and equitable.

Special Considerations for Family Property in Alberta

• Matrimonial Home: Special rules apply to the division of the matrimonial home, recognizing its emotional and practical significance.
• Pensions: Dividing pensions can be complex, often requiring actuaries to determine their present value.
• Business Valuations: For family-owned businesses or shares in a company, professional valuation may be necessary.

Legal and Financial Implications for Family Property in Alberta

• Legal Agreements: Prenuptial agreements, cohabitation agreements, and separation agreements can significantly influence the division of family property.
• Tax Implications: Transferring property can have tax consequences, including capital gains tax.

Dispute Resolution for Family Property in Alberta

• Negotiation and Mediation: Many couples opt for alternative dispute resolution methods like mediation to settle property divisions amicably.
• Litigation: If parties cannot agree, litigation may be necessary, where a judge decides on the division.

Changes in Legislation Regarding Family Property in Alberta

• The shift from the Matrimonial Property Act to the Family Property Act expanded the definition and treatment of family property, especially regarding adult interdependent partners.

Seeking Professional Legal Advice fro Family Property and Property Division in Alberta

• It’s advisable for individuals going through a separation or divorce to seek legal counsel to understand their rights and obligations fully.

The division of family property in Alberta is a complex process influenced by various factors, including the nature of the assets, the duration of the relationship, contributions of each party, and legal agreements. Understanding these nuances is crucial for anyone navigating a relationship breakdown in Alberta.

Author: LUCY DIALE MEWANU