Chances are if one of your clients is getting a divorce, it’s his first time going through a marital split. In that case, he won’t be familiar with what happens to his assets in the divorce. So pass along these pointers from MoneySense.
1) The division of property isn’t just based on who earns more. It’s actually based on all marital assets, including the family home, cars, stocks and personal items acquired while your client was married.
2) But there are exceptions. Gifts, inheritances, insurance proceeds, business assets and trusts aren’t considered marital property.
3) It doesn’t matter who bought the family home. If your client moved into a home his spouse already owned, he still has the right to half of it. This doesn’t just apply to the primary residence, but any property enjoyed by the family.
4) Common-law rules are different. With the separation of common-law partners, people aren’t entitled to equalization payments, or shares of each other’s property.
Read more on MoneySense.
Also read: Co-owners’ divorce leaves business in limbo