Limitation Periods for Property Claim in Family Law

Introduction

Understanding the limitation periods in property claims following separation or divorce is critical. These periods determine the timeframe within which one must act to seek equalization or make an equitable claim. This blog will provide a detailed look at these limitation periods as outlined in the Family Law Act.

The Prescribed Limitation Periods

The Family Law Act, R.S.O. 1990, c. F.3, section 7(3), prescribes the limitation periods for bringing an application for equalization. These periods are the earliest of two years after the marriage is terminated by divorce or judgement of nullity, six years after the date of separation, or six months after the first spouse’s death. Neglecting these timeframes can result in forfeiture of the right to apply for equalization.

Extension of Time

In situations where the limitation period has expired, a spouse can apply for an extension of time under s. 2(8) of the Family Law Act. However, an extension is not automatically granted. Three statutory factors must be met: there must be apparent grounds for relief, relief is unavailable due to a good faith delay, and no person should suffer substantial prejudice because of the delay.

Equitable Claims

Apart from Family Law Act applications, married spouses can also choose to make an equitable claim. This typically involves proving the presence of unjust enrichment or a trust. The limitation period for equitable claims in real property is 10 years, while for all other property, it's 2 years. The limitation period for these claims starts from the date of separation, as clarified in the case of McConnell v. Huxtable.

Conclusion

Understanding and observing the set limitation periods in family law property claims is crucial. Whether it's adhering to the prescribed limitation periods, seeking an extension of time in good faith, or making an equitable claim, it's important to act within these set timeframes. If you're unsure about your rights or the process, it's always best to consult with a legal professional.

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Limitation Periods for Claims by Common-Law Partners in Ontario

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