Divorce is a reality faced by many, with a growing divorce rate, understanding the financial implications of marriage is crucial in the potential event of a divorce. According to the Toronto Sun, Canada has the 29th highest divorce rate out of 87 countries.

The general principles of the implications of marriage- and what it may entail in the event of a divorce are:

The Family Patrimony

When couples divorce, the value of their assets, including property, in the family patrimony is divided, regardless of who owns it or who paid for it.

What is Family Patrimony?

The family patrimony is made up of pension plans, benefits, the family’s houses, including any secondary residences utilized by the family, as well as the moveable items used to supply them, and the automobiles utilized for family travel.

Some exceptions may apply and certain property in the family patrimony that was owned at the time of marriage may be exempt in the patrimony’s partitionable value.

Exceptions: In the event of a divorce, property received by one of the spouses either during the marriage or before (by inheritance or gift) may be excluded from the family patrimony.

The Matrimonial Regime

In the event of a divorce, the matrimonial regime determines how other property not included in the family patrimony would be divided.

There are different types of matrimonial regimes available to spouses:

Types of Matrimonial Regimes:

1. The Matrimonial Regime of Partnership of Aquests

This regime allows for the division of the assets gained during the marriage.

Acquests

What are Acquests?

Acquests are multiple assets acquired during the marriage such as property purchased and income generated during marriage by all your property.

In the event of a divorce, the following property is deemed private and cannot be divided:

1. Property you had before to your marriage;
2. During the marriage, you inherited property by succession or gift, as well as the fruits and income derived from it if the testator or donor so stipulated;
3. Property you purchased to replace personal property, as well as any insurance indemnity related to it;
4. The rights or benefits that have been devolved to you under a contract or plan of retirement, annuity, or personal insurance;
5. Personal papers, wedding ring, decorations, and diplomas;
6. The tools you’ll need for your job, as well as any pay you might be entitled to.

All property is considered an acquests. The spouse who wants particular property classed as private will have to substantiate it.

2. The Matrimonial Regime of Separation as to Property

Except for property that is part of the family inheritance, spouses married under the marital regime of property separation keep property registered in their own names if they divorce.

3. A Sui Generis Matrimonial Regime

Spouses can also choose a sui generis marital regime, which is one that is suited to their own requirements and wants in terms of property division in the event of a divorce. As a result, if they divorce, they might opt to distribute specific assets.

Determine the Matrimonial Regime that Applies to You:

Contact one of our trusted family lawyers at Pace Family Law to determine what matrimonial regime applies to you and your situation.

It is crucial to highlight that regardless of the marital regime decided upon, it is not possible to renounce in advance the division of the value of the property that will form part of the family patrimony after separation, whether through a marriage contract or otherwise.