One of the numerous amendments to the Family Law Act (the “Act”) as a result of Bill 133 (Family Law Statute Amendment Act, 2009) will change the definition of “Net Family Property,” the foundation for calculating spouses’ division of assets.
In determining Net Family Property, the Act will change section 4(1)(a) and allow a party to include in his or her valuation date debts any contingent tax liabilities in respect of the property. For example, parties will be able to deduct contingent capital gains taxes payable upon sale of investments. Before this change, such a deduction could become a point of serious dispute, especially if there was no planned sale of the associated asset.
Another amendment to section 4(1)(b) will exclude from the Net Family Property calculation any debts as of the date of marriage related directly to the acquisition or significant improvement of a matrimonial home.
