Divorce and the Family Business

David Alderson, LL.B, LL.M (Commercial and Corporate), Lawyer, Qualified Arbitrator and MediatorBusiness Dispute Arbitrator, Business Litigation, Business Mediation, Business Mediator, Closely-Held Business Disputes, Commercial, Divorce & Family Business, Family Business Disputes, Oppression Remedies, Partnership Arbitrator, Partnership Dispute, Partnership Dispute Arbitrator, Partnerships and Shareholder Disputes, Shareholder Arbitrator, Shareholder Dispute Arbitrator0 Comments

Family Business Challenges from Divorce or Separation Many businesses in Canada are family businesses or have evolved from family businesses. Family businesses present unique challenges as they grow should the personal relationships of the key members of the family business change or deteriorate. Divorce and separation can have serious impact upon family-owned and family-run businesses, whether incorporated companies or partnerships. Changes in a family business and the challenges presented by change can often result in legal disputes between interested parties. Family business disputes are often be protracted, expensive, and disruptive, and may even result in the sale, division or winding up of the family business. Impact of Separation and Divorce on Family Businesses Complex questions arise in the division of property and assets when dealing with a family business during a separation or divorce. The value of the family business may be included in the equalization of net family property … Read More

Top Four FAQs for Stepparent Adoptions in Ontario

Gilbertson Davis LLPAdoption, Family Law0 Comments

Many modern blended families wish to reflect their emotional bonds through the adoption of children by their stepparents. Here are four key things to know about stepparent adoptions. The Consent of both parents is required. To proceed with a stepparent adoption of a child, you need to obtain the consent of both of the child’s parents, not just the consent of your spouse. You need to obtain the consent of both parents, even if one parent has not been involved in the child’s life. Often, one parent will refuse to provide their consent or not respond to the request to dispense with their consent. If you are unable to obtain the consent of a parent, you will need to start court proceedings to ask the court to dispense with that parent’s consent to the adoption. The Consent of the Child may be required. If a child is over seven years … Read More

Stepparent Adoptions: Dispensing with a Parent’s Consent

Gilbertson Davis LLPAdoption, Family Law0 Comments

In Ontario, a stepparent who wants to adopt a stepchild less than sixteen years of age needs to obtain the consent of both of the child’s biological parents. Often, one parent will refuse to provide their consent or will not respond to the request to dispense with their consent. If one of the parents does not provide their consent to the adoption, the stepparent will need to ask the court to dispense with that parent’s consent. The court may do so if they are satisfied: The adoption is in the child’s best interests and The parent whose consent is required has received notice of the proposed adoption and of the application to dispense with consent, or a reasonable effort to give notice has been made. The stepparent must meet both criteria for the court to dispense with a parent’s consent to the adoption. The onus is on the stepparent who … Read More

Impact of Divorce or Separation on a Family Business

David Alderson, LL.B, LL.M (Commercial and Corporate), Lawyer, Qualified Arbitrator and MediatorBusiness Disputes, Closely-Held Business Disputes, Commercial, Division of Property, Family Business Disputes, Family Law, Injunction & Specific Performance, Oppression Remedies, Partnership Dispute, Partnerships and Shareholder Disputes, Sale of Business Disputes0 Comments

Family Business Challenges from Divorce or Separation Many businesses in Canada are family businesses or have evolved from family businesses. Family businesses present many unique challenges as they grow should the personal relationships of the key members of the family business change or deteriorate. Divorce and separation can have serious impact upon family-owned and family-run businesses, whether incorporated companies or partnerships. Changes in a family business and the challenges presented by change can often result in legal disputes between interested parties. Family business disputes are often be protracted, expensive, and disruptive, and may even result in the sale, division or winding up of the family business. Impact of Separation and Divorce on Family Businesses Complex questions arise in the division of property and assets when dealing with a family business during a separation or divorce. The value of the family business is included in the equalization of net family property … Read More

COVID Vaccination – Can You Force Your Child to Be Vaccinated?

Gilbertson Davis LLPAppeals, Coronavirus, COVID-19, Custody and Access, Family Law, Separation0 Comments

In O.M.S. v E.J.S., 2023 SKCA 8, a Saskatchewan father recently tried, and failed, to get a court to order that his 13-year-old daughter be vaccinated against Covid-19. The case illustrates some of the key principles that courts regularly apply when making determinations about medical treatments in the face of disagreements between separated or divorced parents. In this case, the parents had been separated since 2012. The parents had a high conflict relationship with numerous court attendances. Their daughter lived primarily with the mother, and under the terms of the decision-making responsibility (“custody”) arrangement, the mother had final decision-making responsibility over medical matters. The mother was opposed to vaccinations in general and questioned the accuracy of Covid-19 information circulated by public health authorities. She did not want their daughter to receive the Covid-19 vaccine. The daughter was also opposed to receiving the Covid-19 vaccine. The father wanted their daughter to … Read More

How to Set Aside (Cancel) a Separation Agreement: Part 2

Gilbertson Davis LLPDivision of Property, Divorce, Family Law, Separation, Separation Agreements0 Comments

As Part 1 of this series explained, courts generally respect the arrangements negotiated by parties in separation agreements, but can “set aside” (cancel) a separation agreement for several different reasons. Part 1 discussed two common grounds, (i) misunderstanding of the nature or consequences of the agreement, and (ii) duress, undue influence, fraud, misrepresentation, or public policy reasons. This Part 2 covers another common ground, failure to meet the financial disclosure requirements of the Family Law Act. Financial disclosure is the key obligation in family law. One of the most common reasons separation agreements are set aside (canceled) is for lack of financial disclosure or inadequate financial disclosure. Under the Family Law Act, parties cannot waive financial disclosure before entering into a separation agreement. Under the Family Law Act, the court can set aside a separation agreement if a party failed to disclose to the other significant assets, or significant debts … Read More

How to Set Aside (Cancel) a Separation Agreement: Part 1

Gilbertson Davis LLPAppeals, Cohabitation Agreements, Family Law, Separation, Separation Agreements, Spousal Support0 Comments

Courts generally respect the arrangements negotiated by parties in separation agreements. However, under the Family Law Act, there are several grounds on which a court can “set aside” (cancel) a separation agreement. A party seeking to set aside a separation agreement must show the court their matter falls within one of these grounds and then convince the court to exercise its discretion in their favor and set aside the agreement. A recent case illustrates two of the most common grounds to set aside a separation agreement: (i) if a party did not understand the nature or consequences of the domestic contract; and (ii) where there is duress, undue influence, fraud, misrepresentation, or for public policy reasons. Radosevich v Harvey involved an appeal of a lower court decision. The appellant, Ms. Radosevich, had sued her former family law lawyer, Ms. Harvey, for being negligent in the negotiation of her separation agreement. … Read More

The Top Four Family Dispute Resolution Options

Gilbertson Davis LLPAlternative Dispute Resolution (ADR), Child Support, Collaborative Family Law, Custody and Access, Division of Property, Family Law, Family Law Mediation, Family Law Mediator, Marriage Contracts, Separation, Separation Agreements0 Comments

Most separating spouses do not resolve their parenting, support, and property issues in court. In fact, Canada’s Divorce Act requires separating spouses and their lawyers to try to resolve these issues through an out-of-court process unless it is inappropriate to do so.  This can be a cheaper, faster, and less acrimonious way to settle family law disputes than traditional court litigation.  These out-of-court options are referred to by the general term ‘family dispute resolution process’ (FDR). The most common forms of (FDR) processes, are negotiation, collaborative family law, mediation, and arbitration. This can be formal negotiation between lawyers or more informal negotiation between the parties themselves, with or without lawyers. Negotiation can occur when only one party has a lawyer, and the other party does not. Most separating couples try negotiation first before proceeding to other forms of FDR.   Collaborative family law is a form of negotiation, that attempts … Read More

Three Things To Know About Separation Agreements

Gilbertson Davis LLPChild Support, Coronavirus, COVID-19, Custody and Access, Division of Property, Divorce, Family Law, Family Law Mediation, Separation, Separation Agreements, Spousal Support0 Comments

Separation agreements are legal contracts created by two spouses, after separation. Separation agreements set out each spouse’s rights and obligations on issues such as parenting, finances, property, and support. Both married spouses and common-law spouses can enter into a separation agreement. Separation Agreements are Faster and More Economical Than Going to Court Traditional court litigation can be time-consuming and expensive. It can take years to reach a resolution in court. With litigation, the courts decide when and how a matter moves forward. Even at the best of times, many courts have a large backlog. Since the beginning of the COVID-19 pandemic, the courts have an even larger backlog. The court process is also expensive, and the costs are unpredictable. When negotiating a separation agreement outside of court, parties get to decide the pace and are in more control of the costs. Issues to Address in a Separation Agreement Separating spouses … Read More

Limitation Periods in Family Law

Gilbertson Davis LLPChild Support, Division of Property, Divorce, Family Law, Marriage Contracts, Separation, Separation Agreements, Spousal Support0 Comments

A limitation period is the amount of time within which the law permits one to bring a legal claim or action. Claims started after a limitation period has ended can be barred. Under the Limitations Act, there is a general two-year limitation period. In family law there are several different limitation periods that prospective and current family law clients should be aware of. Under the Family Law Act, married spouses may make a claim for equalization of net family property within the earliest of (a) two years after the marriage is terminated by divorce or judgement of nullity; (b) six years after the spouses separate and there is no reasonable prospect that they resume cohabitation; or (c) six months after the first spouse’s death. The court may extend the limitation period for bringing an equalization claim, if it is satisfied that (a) there are apparent grounds of relief; (b) relief … Read More

Corona Divorce: Worldwide Increase in Divorce Rates and Inquiries After Coronavirus Quarantine

Gilbertson Davis LLPChild Support, Coronavirus, COVID-19, Custody and Access, Division of Property, Divorce, Family Law, Marriage Contracts, Separation, Separation, Separation Agreements, Spousal Support0 Comments

Divorce rates and inquiries have dramatically increased across the world because of lockdowns brought by governments intended to stop the spread of COVID-19. The stress of the pandemic, coupled with being confined in close quarters for weeks, added financial worries and increased childcare responsibilities are thought to be behind this increase. Back in March, Baroness Shackleton of Belgravia, one of the UK’s most eminent family law lawyers told her peers at Westminister: “The prediction amongst divorce lawyers is that following self-imposed confinement it is very likely that the divorce rate will rise.” She further noted: “”One only has to imagine what it’s going to be like when families are sealed in a property for a long period of time.” As China emerged from lockdown in March, numerous cities across China reported large increases in divorce filings. Specific numbers are not available as China only releases statistics on divorces annually. Saudi … Read More

Five Common Myths about Divorce

Gilbertson Davis LLPArbitration, Child Support, Collaborative Family Law, Custody and Access, Division of Property, Divorce, Equalization, Family Law, Separation, Separation Agreements, Spousal Support0 Comments

Both Spouses Need to Consent to Divorce In Canada, if one spouse wants to divorce, they do not need to seek their spouse’s consent to divorce. Canadian courts will grant a divorce under three grounds: if spouses have been separated from each other for a year without reconciling; if a spouse has proven adultery occurred during the marriage and they have not absolved their spouse; and if one spouse proved they received mentally or physically cruel treatment from their spouse. The Spouse Who Earns Less Income Always Receives Spousal Support Unlike child support, separated and divorced spouses do not have an automatic right to receive spousal support when their marriage ends. Separated spouses may be entitled to receive spousal support. There are several factors which give rise to an entitlement to spousal support. These factors include the length of the marriage or relationship, the roles each spouse played in the … Read More

Five Reasons Why You Should Choose Collaborative Divorce

Gilbertson Davis LLPAlternative Dispute Resolution (ADR), Child Support, Collaborative Family Law, Coronavirus, COVID-19, Custody and Access, Division of Property, Divorce, Family Law, Marriage Contracts, Separation, Separation Agreements, Spousal Support0 Comments

One: It’s Faster Traditional litigation can be a lengthy, time-consuming process, and it can take years to reach a resolution. With litigation, the courts decide when and how a matter moves forward. Even at the best of times, many courts have a large backlog. Since mid-March 2020, the courts in Ontario have suspended regular operations due to the COVID-19 pandemic. While the courts have continued to hear emergency matters and have recently expanded their scope of operations, they will not resume normal operations until July 6, 2020 at the earliest. There inevitably will be a large backlog when the courts reopen. Most collaborative professionals, along with mediators and arbitrators, continue to work during the pandemic by offering their services virtually. Two: It’s More Economical Collaborative divorce often costs less than going to court. The court process is expensive, and its costs are unpredictable. Traditional litigation requires a lot of preparation, … Read More

The Impact of COVID-19 / Coronavirus on Family Law

Gilbertson Davis LLPAlternative Dispute Resolution (ADR), Child Support, Coronavirus, COVID-19, Custody and Access, Divorce, Family Law, Interjurisdictional Disputes, Mobility Issues, Separation, Separation Agreements, Spousal Support0 Comments

The current COVID-19 pandemic has dominated our working and private lives. It is not surprising that the pandemic has greatly impacted all areas of family law and has created unprecedented challenges for separated parents. Self-isolation and social distancing orders have presented a host of challenges for parents dealing with access and parenting arrangements. Many parents have lost jobs or suffered other economic losses during the pandemic which has left them unable to fulfill their current support obligations. An increase in domestic violence has been another unfortunate result of the pandemic, which may increase the need for restraining orders and peace bonds. While the Ontario Superior Court of Justice and the Ontario Court of Justice have suspended regular operations, they continue to hear urgent family law matters. The closure of the courts highlights the need for cooperation between parents and their counsel during these times. At Gilbertson Davis LLP, we have … Read More

Divorce and Separation: Spouses jointly owned business’

Gilbertson Davis LLPDivision of Property, Divorce, Separation, Separation Agreements0 Comments

When parties separate, tensions are high with both parties making lifestyle adjustments, attempting to divide assets and often negotiating  parenting arrangements.  In the case where parties share business interests or are partners in business, this can lead to increased stress, where the business and therefore the spouses current and future financial security remains entwined with a soon to be ex-spouse’s. In the case of Danecker v. Danecker, 2013 ONSC 1605, the husband and wife were both physiotherapists.  Their marriage ultimately broke down in late 2009 and at the date of separation, they were equal partners in an unincorporated physiotherapy clinic. The husband attempted, without success, to set up his own separate clinic but eventually was employed by a local hospital. Upon the separation, the wife bought out the husband’s share of the building and continued to operate for three years without any profits being shared with the husband. As part … Read More

Divorce: How are business assets split?

Gilbertson Davis LLPDivision of Property, Divorce, Marriage Contracts, Separation0 Comments

When parties separate, there are often disputes over one party’s entitlement to the other party’s shares or interest in a private or family business. If a marriage contract was executed validly, this contract may govern the splitting of business assets.  Where there is no marriage contract, there is no specific method of valuating a business under the Family Law Act and parties should always be aware that different methods can result in different values with different tax consequences.  Parties often hire two separate valuators and if both parties cannot agree, the issue will end up in the Family Courts. Entitlement to a share of the business Whilst a family business which has been inherited or gifted to one party may result in the business interest being exempted from matrimonial property, the value of a private business interest not inherited or gifted will fall presumptively into the category of matrimonial property … Read More

COVID-19 / Coronavirus: The Ontario Superior Court of Justice Expects to Further Expand the Scope of Matters to be Heard Virtually

Gilbertson Davis LLPCollaborative Family Law, Coronavirus, COVID-19, Custody and Access, Divorce, Family Law, Hague Conventions, Separation0 Comments

On May 5, 2020, the Ontario Superior Court of Justice issued a Notice to the Profession, Litigants, Accused Persons and the Media advising of the Continued Suspension of in-court matters to July 6, 2020. This Notice further advised the Superior Court will continue to hear matters virtually and expects to shortly further expand the scope of matters that will be heard virtually. On March 15, 2020, the Chief Justice of the Ontario Superior Court of Justice released a Notice to the Profession advising that all scheduled family law hearings were adjourned until further notice. However, the Ontario Superior Court of Justice continued to hear urgent family law matters such as: requests for urgent relief relating to the safety of a child or parent (e.g., a restraining order, other restrictions on contact between the parties or a party and a child, or exclusive possession of the home); urgent issues that must … Read More