When couples have been together for a long time and have built their lives as a unit, splitting assets can be tricky business. The rise of so-called "grey divorce" in Canada has also given rise to questions about complex asset division, as many of these splits are anything but straight-forward. Here is what Alberta individuals and couples should know about this growing trend, and what it can mean for the financial future of both parties.
Dividing assets during a divorce can be particularly difficult when a couple owns a lot of land, or if they have a shared business. For Alberta farming families, both are often in the mix, making for complex asset division. When splitting family assets, one common question among both rural and urban families is which avenue or steps can be taken to minimize taxes, such as capital gains when transferring property ownership.
Figuring out who gets which assets in a divorce is rarely easy, but for some couples it can get even more complicated. This is certainly the case for couples who share a business. Alberta couples with a family business or businesses can add many complexities to the property division process. Many consider shutting down or selling the business to be the only resolution, while others seek alternative options.
Entrepreneurs need to know a lot more about divorce than the average Joe or Jane. Some Alberta residents who have amassed a sizable amount of assets from a successful business and now find themselves embroiled in a high-asset divorce may want to keep a number of things in mind. Keeping a business safe from a potentially angry spouse means keeping a level head since a lot may be at stake financially.
The divorce process has changed drastically within the last few decades. And with those changes in Canada, couples who are divorcing may find themselves with a whole new set of issues when it comes to property division. With the advent of cryptocurrencies like Bitcoin, divorcing couples may be wondering how these assets play into the scenario when figuring out who gets what.
When a marriage breaks up, there are many things to consider besides healing broken hearts. If a divorcing Alberta couple has amassed sizable assets, they need to think about things like property division, dividing other assets and clearing debts. Essentially there are two questions to be answered: What each individually is financially worth and what the couple is financially worth together. The 1968 movie, "Yours, Mine and Ours," was about a blended family, but the title could just as easily be used as the starting point for dividing assets in a divorce.
Couples who have decided to divorce and who have healthy bank accounts and portfolios, including property and other assets, are advised by experts to stay out of the court system. High asset divorce in Canada could be a costly endeavour. However, making decisions through direct negotiation or mediation would be the wisest route to take not only to minimize the financial impact of the divorce but to keep control over the situation.
More than 40 percent of all marriages in Canada will end in divorce and most are labelled "no fault." Wealthy, married Canadian couples usually have no problem paying for a divorce. But in high asset divorce cases in Alberta, the best scenario moving forward with divorce action is to try to stay clear of the court room.
Children of divorce don't have it easy, especially when their parents get so caught up in their own lives that they forget to parent. Registered parenting coordinators and arbitrators (RPCA), under family law, are an essential part of the divorce process in Alberta and can have a positive effect on the lives of children and their separating parents. RPCAs facilitate communication and cooperation between parents so they can effectively co-parent their kids.
All divorces can have sticking points for either or both parties involved. When the value of the marital assets is above average, property division can become a contentious issue. For many Alberta couples, the marital home is their single most valuable asset and deciding what to do with it may cause friction.