What Assets Are Excluded from Marital Property in Alberta?

Question from Lio, What Assets Are Excluded from Marital Property in Alberta?

Answer from AI:

When a marriage ends in Alberta, Canada, the process of dividing property between the spouses is governed by the Matrimonial Property Act (which will be renamed the Family Property Act). This law outlines what is considered marital (or family) property and what is excluded. It’s important to understand that the division of property can be complex, and the following information is a general guideline. For personalized advice, it is recommended to consult with a family law attorney.

Excluded Assets in Alberta

Generally, certain types of assets are excluded from the division of marital property in Alberta. These exclusions typically include:

• Inheritances: Money or property received by one spouse as an inheritance is usually excluded, provided it has not been integrated into the marital assets.
• Gifts: Gifts received by one spouse from a third party are often excluded, again, as long as they have not been co-mingled with marital property.
• Property owned before the marriage: Assets that one spouse owned before getting married are typically excluded from marital property. However, the increase in value of these assets during the marriage may be considered marital property.
• Insurance payouts: Certain insurance payouts, such as those received for personal injuries, may be excluded.
• Settlements for damages: Settlements awarded for damages not related to the marriage or the economic partnership may be excluded.
• Property excluded by a prenuptial agreement: Assets that are specifically excluded under the terms of a prenuptial or postnuptial agreement are not considered marital property.

Important Considerations

It’s important to note that the exclusion of these assets is not automatic. Specific conditions must be met:

1. The asset must be clearly identifiable and traceable to one of the excluded categories.
2. The asset must not have been transformed into marital property, for example, by being used for family purposes or placed in joint names.

If excluded property has been mixed with marital property, or if the value has been significantly changed due to the efforts of either spouse during the marriage, it may lose its excluded status.

Seeking Legal Advice

The division of property during a divorce can be a contentious and complicated process. It is often influenced by the specific circumstances of each case. Therefore, it is advisable to seek legal advice from a family law attorney who can provide guidance based on the details of your situation.

For more information on the Matrimonial Property Act and the upcoming changes under the Family Property Act, you can visit the Government of Alberta’s official website.

Remember, this information is intended to provide a general understanding of the law in Alberta regarding excluded assets in marital property. It should not be taken as legal advice for any individual case or situation.