Divorce can be a tumultuous journey, fraught with emotional and financial challenges. Amidst the important decisions that need to be made, selling the matrimonial home often emerges as a significant, daunting, and sometimes contentious task, as the matrimonial home is often the parties’ most valuable asset. This blog will delve into the intricacies of selling the matrimonial home after divorce in Ontario. From understanding your legal obligations and rights, to navigating the emotional terrain of saying goodbye to the family home, this blog post aims to provide insight into when and how the sa ..read more

When a personal injury case is settled, the claimant may be compensated through a structured settlement. This is an arrangement where settlement funds are paid to the injured party through scheduled payments over a period of time. This can, however, raise issues for parties with family law claims and courts have specifically considered whether the funds constitute property that is subject to division under the Family Law Act upon divorce. Husband Argues Wife’s Annuity Payments Should be Treated as Property In Hunks v. Hunks, the Court of Appeal for Ontario had to decide whether annuity payment ..read more

In family law litigation, if one party has knowingly or recklessly made a false statement with knowledge of the falsehood, the statement may constitute fraud. Accordingly, a court may change an order that was obtained by fraud, however, in order to do so there is a high threshold to meet. A party’s belief that a litigant has deliberately misrepresented the facts is not sufficient. High Threshold to Change an Existing Order Due to Fraud Rule 25(19) of the Family Law Rules allows courts to change an order that was obtained by fraud. In Gray v. Gray, the Ontario Court of Appeal also determined th ..read more

A divorce imposes disclosure obligations on the spouses and the production of documents that can contain sensitive financial or business information. Third parties may also need access to the information to complete tasks such as valuing a spouse’s interest in a business. Understandably, parties prefer to keep this information confidential. If a spouse has access to information in a business capacity, will it need to be disclosed, and are there ways to ensure that sensitive information remains confidential? Information Obtained as a Director May Not be Disclosed in Personal Litigation The case ..read more

In today’s world, people have a significant amount of freedom regarding the arrangements they can make in familial matters. An example of this flexibility is a marriage contract, also known as a domestic contract in Ontario. This blog will discuss the purpose of such agreements and the grounds under which the courts could invalidate them. Further, this blog will explore a recent case before the Ontario Superior Court of Justice which revealed several factors a judge will consider to be persuasive when deciding whether or not to invalidate a marriage contract. What is a Marriage Contract? In On ..read more

A party who is receiving an equalization payment can ask the court for prejudgment interest on the amount that is owed. The Courts of Justice Act provides that a party entitled to the payment of money can claim interest “calculated from the date the cause of action arose to the date of the order”. However, courts have been clear that granting prejudgment interest is discretionary, and there are some exceptions to this general rule where prejudgment interest will not be awarded. Payor Will Generally Need to Pay Prejudgment Interest Section 128(1) of the Courts of Justice Act deals with prejudgm ..read more

There is a common law rule that courts will not enforce a penalty clause in a contract. However, the terms of family law agreements and minutes of settlement that parties consent to are frequently incorporated into court judgements. Once that happens, and the terms of the agreement become a court order, they are enforceable and are required to be performed. However, if a party seeks to contest the enforceability of a term on the ground that it is a penalty, they must do so before it becomes a court order. Minutes of Settlement are Incorporated into the Divorce Judgment In Assayag-Shneer v. Shn ..read more

Property can be held in joint tenancy, meaning each joint tenant holds an undivided interest in the entire property. So what happens if one tenant has outstanding debt and a third-party creditor tries to recover against the property? Can the creditor seize the interest of the non-debtor owner? The issue can be important for parties who are separating as the respective priority of the claimants can have financial consequences. Support Payment Has Priority Over Creditor’s Recovery In Patton v. Patton the spouses had separated, but the husband had failed to meet his loan obligations to a bank. Th ..read more

A vesting order enables a court to transfer property ownership from one party to another. In family law cases, a person may seek a vesting order when the recovery of equalization or support payments are an issue. If the payor has been uncooperative or has not met their obligations to make the required financial payments, an order transferring property can provide the recipient with protection. However, this remedy is granted at the court’s discretion. A Party Must Show a Vesting Order is Appropriate Courts have broad jurisdiction to make vesting orders to satisfy the payment of an equalization ..read more

In divorce proceedings, married spouses in Ontario are generally entitled to one-half of the value of property accumulated during the marriage. An equal distribution of net family property is often standard, but what happens if one party’s conduct has been improper such that they have incurred significant debts, depleted family property, or used family finances to support gambling or an addiction? Can this financial misconduct impact the equalization payment? Financial Impact of a Spouse’s Misconduct is Relevant Section 5(6) of the Family Law Act permits courts to award an unequal division of ..read more