HomeMy WebLinkAboutThe Citizen, 1987-02-04, Page 18PAGE 18. THE CITIZEN, WEDNESDAY, FEBRUARY 4, 1987.
= <T7
Partners should
understand terms
of a marriage
contract
Marriage contracts - legal doc
uments specifying who gets what
property and maintenance when a
marriage ends - will become the
norm in Ontario as one result of the
new and far-reaching Family Law
Act, some lawyers say.
I he reason, they say, is thatsuch
a contract enables the separating
couple to avoid the consequences
of the new law, which, on marriage
breakdown, requires the equal
sharing of all assets, including
business assets, acquired during
the marriage.
Of course, the contract holds
whether a legal marriage or a
com mon-law relationship is involv
ed, and will cover marriages that
end because of the death of a
spouse, as well as separation.
“This act will apply to every
married person in the province,
either when they’re alive or after
they go,’’ says Lome Wolfson, a
civil litigation lawyer in Toronto
whopracticcsextensively in family
law.
Mr. Wolfson says the act takes
precedence over a will, when it
comes to dividing the assets of a
marriage when one spouse dies.
But a marriage contract enables
a couple to “opt out” of the act, so
t hat the wishes of a testator in his or
her will won’t be frustrated by the
new law, he explains.
Marriage contracts were also
available in the old act so spouses
could opt out of its property
division and maintenance sections
when a marriage dissolved.
Under the old law, only family
assets acquired during the marri
age - such as the matrimonial
home, cars and cottage - were
subject to an equal division when a
marriage broke up.
One spouse, usually the wife,
would have to ask a court to give her
a share of the other spouse’s
business assets, but there was no
guarantee she’d get it.
Butunderthenewact, all assets,
including business assets, invest
ments and pensions, acquired
during the marriage by either
spouse, are subject to equal
division, as is the growth in value of
assets brought in the marriage by
either spouse.
And the matrimonial home,
even if brought into the marriage
by one of the spouses, is always
subject to equal division.
The Canadian Bar Association -
Ontario thinks the law has such
wide implications it scheduled a
special two-day seminar on it for
lawyers last year.
Family-law solicitors attending
were given seven papers totalling
hundreds of pages on different
aspects of the law, ranging from its
basic ideas to domestic contracts
and estate planning.
Mr. Wolfson has prepared his
own paper on the law, in which he
predicts that marriage contracts
will become as common as wills.
Attorney-General Ian Scott isn’t
so sure, but does think the law will
force people to examine the
economic consequences of marri
age more closely.
“You’ve got to approach marri
age or cohabitation conscious of
the economic responsibilities
you’re undertaking and they are
more onerous than they used to
be,’’ he says.
The government, however,
doesn’t expect people will need to
acquire economic degrees to figure
out how the act works, he says.
In any event, some people “are
so romantically inclined (when
they marry) they wouldn’t consider
economic considerations if you
blew it in their ear,’’ Mr. Scott
says.
Here ’ s how the division of assets
is to work in a situation where there
is no marriage contract:
The key phrase in the law is “net
family property,’’ or NFP, which is
defined as the value of all property
owned by a spouse on the valuation
date, which is defined as the date of
separation or divorce, or the day
before the death of a spouse.
Such things as a spouse’s debts
and liabilities and property other
than the matrimonial home
brought into the marriage are
deducted from that spouse’s NFP.
Also excluded from the NFP is
property acquired during the
marriage by a spouse by way of a
gift or inheritance, damages a-
warded by a court for injuries or for
compensation for the loss of a
relative, and the proceeds or the
right to the proceeds of a life
insurance policy.
On a marriage breakdown, each
spouse adds up the value of his
NFP; the spouse with the smaller
amount is entitled to cash or
property equal to one-half of the
difference between his total and
the other spouse’s total.
For example, if one spouse has
anNFPof $50,000 and the other
$100,000, the spouse with the
lesser amount is entitled to $25,000
from the other spouse.
When one spouse dies, the
situation becomes a little more
complicated. If there is a will, the
surviving spouse has the choice of
applying for the assets under the
law, or under the will, but not both.
At Total Approach we
offer a complete range
of services to make your
wedding day as special as
it should be.
•Facials
•Manicures
•Wax Depilation
•Make-up
•Lash Tinting
SPECIAL BRIDAL PARTY
MAKE-UP PACKAGES
‘ Give a gift certificate
Call Brenda Lalonde
Certified Aesthetician
This, says Mr. Wolfson, will lead
to situations where the surviving
spouse will have to calculate which
method provides the greater bene-
fit and could lead to some real
problems.
If a wealthy spouse dies, leaving
his entire estate to his children by a
previous marriage, the surviving
spouse has the right under the law
to some of the estate.
V J
4,
s'
Sotal
^Lbbroach
> Nutrition & Aesthetic
Skin Care Centre
519-271-0760 123WATERLOOST.SOUTH
STRATFORDN5A3B9
Our 1987 Formal Wear
catalogues are here. We will be
pleased to help you select a
formal outfit for any occasion.
Dress-up your
wedding with
formal rentals
from Browns...
by.
SYD SILVER
FORMALS
OR
Browns
MEN’S & BOYS’ WEAR
MASTERCARD
AMERICAN EXPRESS
OPEN 6 DAYS
70 Ontario St.
STRATFORD 271-1672
A WEEK & FRIDAY
NIGHT UNTIL9
Serving Stratford <& surrounding area for 50 years
Wedding & Portrait Specialist
Westfield Studio
R.R. 3 Blyth
Photography
Make sure you’ll have
quality and distinctive
photographs to treasure
for a lifetime
Let us capture the
Magic of your
wedding day
“The Country Studio "
ALSOAVAILABLE:
Video photography and
transfer wedding invitations.