Matrimonial Homes in Ontario

Introduction

Family law is a vast and complex field of legal practice that touches on various aspects of family relationships. One important area is the protection of matrimonial homes in Ontario, particularly when it comes to transactions that encumber or dispose of them. This blog post will delve into three main aspects of this issue, as governed by the Family Law Act (R.S.O. 1990, c. F.3).

Setting Aside Unilateral Transactions

Under the Family Law Act, a unilateral transaction that burdens or disposes of the matrimonial home may be set aside. This protection is only lifted if the third party acquired the property for value, acted in good faith, and had no knowledge that the property was a matrimonial home. This provision seeks to safeguard the interests of the spouse who was not part of the transaction.

A spouse can also apply to a court to set aside the wrongful disposition or encumbrance of a matrimonial home (Family Law Act, s. 23(d)). A transaction which encumbers or disposes of an interest in the matrimonial home is voidable, and is not necessarily void, which makes it a discretionary remedy.

Voidable Transactions and Court Applications

A spouse can also approach a court to set aside the wrongful disposition or encumbrance of a matrimonial home under section 23(d) of the Family Law Act. Such a transaction is considered voidable, meaning it's not necessarily void or invalid but may be deemed so through a discretionary legal remedy. This offers another layer of protection for spouses who may have been unfairly affected by such transactions.

Seeking a Preservation Order

In situations where a spouse believes that a transaction encumbering, transferring, or disposing of the matrimonial home should be set aside, they would need to bring a motion before the court. In addition to this, it would be advisable for the spouse to seek a preservation order against the home. This step ensures that no further dealings occur with the property, pending the outcome of the motion to set aside the transaction.

Conclusion

The protection of matrimonial homes in Ontario's family law is an important aspect of ensuring fairness and justice in the dissolution of marital relationships. By understanding these provisions, individuals can better navigate the complexities of the law and protect their interests. However, these laws can be complicated, and it's always recommended to seek legal advice when dealing with such matters.

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