Legal Fundamentals Flashcards
Common Law
Living in conjugal relationship for 12-36 months, less if they raise a child together.
Custody arrangements
Sole - child spends majority of time with one parent (60% or more) rare
Shared/joint - split between parents approximately equal
Split - one kid with each parent
Child Support
Based on economic potential
Support guidelines up to 150k income (no guidance after that)
Sole custody is based on non custodial parents income and province are accounted for
Payments can be up until 16-23(if in school) or longer if disabled
Reasons for Changes in Child Support
-Extraordinary expenses (reasonable and necessary)
-Undue hardship
-Changes in income
Spousal Support
-Needs to be a significant discrepancy
-Lump sums for small amounts
-Need to be paid with a court order for tax deduction
-Can be garnished from tax refund, ei, cpp, oas, fed pensions
Matrimonial Property Exclusions/Inclusions
Excl. - Inheritances, life insurance death benefits, injury awards, property brought into the relationship, business assets (if spouse can’t prove they contributed in some way)
Incl - accumulated while together, business assets (if spouse can prove they contributed in some way)
Pension Splitting Methods
Closer to retirement may share pension while younger couple may result in lump sum payout
Domestic Contract
Marriage contract - for married couples
Cohabitation - for those not married (void if married)
Will mention gifts/inheritances and possibly testamentary wishes (a contract will override a will), spousal support (courts may overturn), but not child support.
Promissory Note Uses
Loan security, share purchases, family tax and estate planning
Tenant In common
Can freely negotiate their interest in property. Need unity of possession.
JTWROS
Unity of possession (equal right to access and sell), time(interest arose at same time), interest (same ownership rights), title (same doc creating ownership/ no preferential ownership)
Does domestic/marriage contract cover loss of capacity?
no
What assets are protected from bankruptcy
life insurance csv where beneficiary is irrevocable or parent, grandchild, spouse, child and seg funds and tools of the trade (up to 10k), rrsp, pensions assets, resps, rdsps, some home equity, vehicle, clothing/furniture
Things not discharged through bankruptcy
spousal/child support, court orders for damages, student loans 7 years after graduating, fraud debt, secured debts
Bankruptcy vs consumer proposal
CP less harsh financial restrictions, no interest in both cases, cp impacts credit for years vs 6 years for bankrupt, cp can still enter contracts, handle money professionally, can act as trustee/director.
