Limitation Periods for Equalization and Spousal Support

Limitation periods are crucial deadlines that ensure a claim does not become barred. These periods dictate when an individual must commence their claim, especially in family law cases involving separation or divorce.

Equalization

Net Family Property (NFP) determines the value of property owned by each spouse on the valuation date, minus debts and liabilities. The spouse with the lesser NFP may claim one-half of the difference between the two NFPs, known as equalization.

Under Section 7(3) of the Family Law Act, claims for equalization must be filed by:

• Two years after divorce or nullity judgment.
• Six years after separation, with no prospect of resuming cohabitation.
• Six months after the first spouse’s death.

The court may extend these deadlines under Section 2(8) if there are grounds for relief, delays incurred in good faith, and no substantial prejudice. However, filing within prescribed periods is strongly advised.

Spousal Support

Spousal support helps a spouse financially after separation or divorce, accounting for various factors like childcare, career sacrifices, or financial disadvantage.

Eligibility in Ontario includes:

• Marriage, cohabitation for at least three years, or a relationship with a child.
• Demonstrating financial needs or responsibilities during the relationship.

Under Section 16(1)(c) of the Limitations Act, 2002, there is no limitation period for spousal support claims under the Family Law Act. Claims predating the Act may still follow a two-year limitation period.

Conclusion

Be mindful of limitation periods to avoid losing entitlement to equalization or spousal support. Consult a legal professional for guidance.

Published: 18 Sep 2024 | KL