Written by: Naa Lansana
The commencement of a family law case necessitates careful consideration of several factors, inclusive of an understanding of key dates and statutory limitation periods. While the following dates are not exhaustive, they include crucial times to bear in mind.
The Family Law Act defines the valuation date as the earliest occurrence of the following events: the date of spousal separation without a reasonable prospect of reconciliation; the date a divorce is granted; the date the marriage is declared a nullity; the date one spouse initiates an application that is subsequently granted based on reckless depletion of assets; or the date preceding the death of one spouse, leaving the other surviving.
Upon separation, the valuation date holds significant importance. Among other things, it usually marks the start of child and spousal support obligations. For married couples, this date carries additional weight. Firstly, it establishes the point from which the one-year separation period, frequently cited as grounds for divorce in Canada, begins. Consequently, determining the separation date initiates the timeline for divorce. Furthermore, the valuation date serves as the reference point for appraising the parties’ assets and liabilities for the purpose of calculating equalization, which entails the equal distribution of the net increase in wealth accumulated during the marriage. Given the fluctuating nature of asset and liability values over time, a clear determination of the valuation date is essential, as different dates could yield varying net worth calculations and, accordingly, different equalization payment amounts.
As well, under the Divorce Act, should spouses resume cohabitation after separation for a period of time totalling 90 days or less with the goal of reconciliation, this period does not interrupt the calculation of the one-year separation required for divorce in most instances. However, if the period of resumed cohabitation exceeds 90 days, the one-year separation period would then restart.
Similar to other forms of litigation, family law proceedings are subject to statutory limitation periods that claimants must observe. The Family Law Act stipulates that the entitlement to an equalization payment from a former spouse or their estate is legally barred after the earliest of the following: two years from the date of divorce; six years from the date of separation; or six months from the date of the first spouse’s death.
During the course of family law matters, adherence to all prescribed deadlines is of utmost importance. Consequently, prospective litigants are strongly advised to remain cognizant of these critical dates.
