Family Property Act, important changes that could affect you

New Year, New Era in Family Law

In 2018, Bill 28, the Family Statutes Amendment Act, received Royal Assent. This bill will shepherd in a new era of family law in Alberta. It replaces the old Matrimonial Property Act, with the Family Property Act ("Act"), which came into force on January 1, 2020. This new Act gives common law couples similar property rights as their married peers.

“Bill 28, the Family Statues Amendment Act 2018 has been passed to: make it easier for unmarried partners to divide their property if they break up, make it clear that all parents can apply for child support for their adult children with disabilities — regardless of their marital status, repeal the Married Women's Act since newer legislation has been passed that better reflects the needs of women in today's society ” - Government of Alberta

www.alberta.ca/famliy-law-changes.aspx

Sure, but what does that mean?

Prior to the Family Property Act, only married couples were conferred, by statute, rights to equal property division (subject to some exceptions) over all assets acquired during the marriage regardless of who held the property. Without a marriage certificate however, a common law spouse could previously only seek to divide their partner's property upon separation, by claiming under common (judge made) law and proving unjust enrichment. Now, with the Family Property Act, whether you are married or a common law couple, upon separation, property that was acquired from the date you became Adult Interdependent Partners ("AIPs") to the date of trial or settlement could potentially be divided 50/50. This changes property division for common law couples in various ways including: being able to rely on statutory rights for property division, presumption of equal sharing and changing the time in which property may be shared. The Matrimonial Property Act will continue to govern those who separated prior to December 31, 2019 (unless the parties elect to have the Family Property Act govern instead). Couples who separated on or after January 1, 2020 will be governed by the new Act.

Alright you have my attention, that is huge. Also, what the heck is an AIP?

The Family Property Act applies only to married couples or couples who are AIPs. The definition of AIP is found in the Adult Interdependent Relationships Act. When two people who live together in a relationship of interdependence either 1. enter into an Agreement declaring they are AIPs, 2. have a child together and have a relationship of some permanence, or 3. live together in a relationship of interdependence for at least 3 years, they are AIPs.

So what should I do now?

Property division has always been a very complicated area of law. With this new Family Property Act coming into force, the law becomes even more nuanced than before. The Family Property Act has yet to be tested in Court. Thus, even lawyers are only doing their best to interpret the Family Property Act at this point with no case law as guidance. Thus, if you believe you may be an AIP, are considering entering into a common law or cohabitation relationship, believe the Family Property Act affects you, or if you just want to learn more about the new Family Property Act, it is best to set up a consultation with a family lawyer to get some legal advice.

Information provided in this blog is for information purposes only and is not legal advice.