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Archive for April, 2010

BC Law on Varying or Setting Aside Unfair BC Separation Agreements or BC Marriage Agreements 2010 Update

Sunday, April 25th, 2010

We are often asked to review BC separation agreement or BC marriage agreements with a view to setting the BC separation or BC Marriage agreement aside and Shelagh Kinney of our BC Family Law office had a nice win recently in a case on behalf of the wife in L v. L, a BC Supreme Court separation agreement variation 2010 decision.

Our Supreme Court in the Brandsema decision warned spouses that fair agreements made with full disclosure between spouses on an equal footing will be protected but unfair exploitive agreements will not be sanctioned. In Brandsema the Court focussed on non-disclosure by the husband and varied the agreement to give the wife more money on the following basis:

Abella J., speaking for the majority, stated (at paras. 1–6):

“This court has frequently recognized that negotiations following the disintegration of a spousal relationship take place in a uniquely difficult context. The reality of this singularly emotional negotiating environment means that special care must be taken to ensure that, to the extent possible, the assets of the former relationship are distributed through negotiations that are free from informational and psychological exploitation.

…

This appeal, therefore, attracts a spotlight to the duties owed by separating spouses during the process of negotiating and executing a separation agreement for the division of matrimonial assets. In Miglin, based on the inherent vulnerability of spouses during negotiations, this Court stated that in order to safeguard a separation agreement from judicial intervention, a spouse must refrain from using exploitative tactics. It held that the failure to do so, particularly if the agreement fails to materially comply with the objectives of the governing legislation, could well result in the agreement being set aside.

The circumstances of this case move us to consider the implications flowing from Miglin for the deliberate failure of a spouse to provide all the relevant financial information in negotiations for the division of assets. In my view, it is a corollary to the realities addressed by this court in Miglin that there be a duty to make full and honest disclosure of such information when negotiating separation agreements.

The husband’s exploitative conduct, both in failing to make full and honest disclosure and in taking advantage of what he knew to be his wife’s mental instability, resulted in a finding of unconscionability. The trial judge accordingly ordered that the wife be compensated in an amount representing the difference between her negotiated equalization payment and her entitlement under British Columbia’s Family Relations Act, R.S.B.C. 1996, c. 128. On the facts and law, I see no reason to disturb his conclusion.”

Spouses need to approach the settlement negotiations frankly and ensure the opposing party gets independent legal advice. Home made agreements are unlikely to protect either side and a little money and effort spent doing it right the first time will ensure savings on expensive legal fees after the fact.

Lorne MacLean

MacLean Family Law Group Layers and Articled Students

MacLean Family Law Group Wins BC Shared Custody for Father

Friday, April 23rd, 2010

Lorne MacLean, Partner MacLean Family Law Group

Lorne MacLean is currently involved in a BC Shared Custody case and he is relying on a case he won for a father a few years ago which BC shared custody and guardianship case accepted MacLean’s arguments and ordered week on week off shared custody as follows:

1. In O.T.H. v. S.L.H. 2003 BCSC 1399, a mother appealed an order of a Master awarding joint custody and equal parenting time for the parties’ child, which was a change in the status quo for the Child since the parties separated. Rogers J. dismissed the appeal and held that the Master had not erred in altering the status quo. At paragraphs 28 & 29 of the decision, Rogers J. held that:

It cannot, as Mrs. H. suggests, be the case that simply because the status quo has pertained for, say, a year and a half, that it must ipso facto serve the child’s best interests. That is, in my view, extremely faulty reasoning. One does not, just because the child has had his primary residence with one parent for a year, conclude that that arrangement is in that child’s best interests. That arrangement may, in fact, have been contrary to the child’s best interests from the outset. It is for the court on an application to upset the status quo to determine where the child’s best interests lie. This is, I believe, one of the bedrock principles of family law. See, for example, Gordon v. Goertz, [1996] 2 S.C.R. 27 and Robinson v. Fylik, [1996] B.C.J. No. 2519.
I do not think that the learned Master fell into error by proceeding on an assumption or some preconceived idea that shared residency is the default position and that it was for either Mr. or Mrs. H. to show that it should not pertain. The learned Master’s reasons clearly indicate that as he considered Mr. H.’s application for shared residency he took into account the fact that for the most part the children had been with their mother since separation and that they were now expressing a desire for more time with their dad. His reasons also indicate that he considered the parents’ own wishes in that regard and whether shared residency would unduly upset the children. The learned Master made reference to Mrs. H.’s agreement that, at least in the summertime, there should be shared residency. I have no doubt that the learned Master considered, as well, the principal of maximum contact between child and parent mandated by s. 16(10) of the Divorce Act R.S., 1985, c. 3. The learned Master took into consideration the children’s circumstances before the application, concluded that shared residency would better serve those interests, and made his order accordingly.

Lorne MacLean Divorce Lawyer Rated By Satisfied BC Family Law Clients

Wednesday, April 21st, 2010

Lorne MacLean Wins LMA Best of Show in San Francisco

We work hard for our clients and love it when they succeed with our assistance! Here is what some of our clients and people who enjoy our facebook page have said about us in their ratings and reviews of us.

5/16/2011
Lorne MacLean of the MacLean Family Law Group
provided me with a strong commitment to seek justice and ensure quality care was taken in dealing with my legal matter. They are incredibly hard working and dedicated to their clients.

Lorne and his team demonstrated a broad perspective of knowledge and wisdom in the area of family law. They conducted a thorough and comprehensive plan by collaborating with various resources and expertise when necessary. They were attentive to complex details of my case and were always well prepared. Lorne and his team gave me the assurance that they would get things done correctly and efficiently while still keeping a high standard of moral and ethical values. I had confidence in their ability to represent me well and advocate in the best interest of my children.

I was treated respectfully and kept well informed and at the same time always treated with care and understanding with regards to my personal circumstances. Lorne MacLean and his firm have high professional standards and integrity and I received nothing short of exceptional care!

I highly recommend Lorne MacLean !!

Lorne helped our family out immensely and won Sole Custody for my brother..Lorne is an amazing lawyer, thank you Lorne and Justin! All I know is that, God forbid, if I ever had to enter a courtroom regarding my son, I would never go in without someone of Lorne’s caliber and expertise.

Our family hired Lorne and his firm to represent us in an extremely difficult custody case and he worked his ass off for it. He is the best in his field and he has proved this time and time again.

Never once did I witness him or his staff acting in anything but a professional and courteous manner. Lorne went above and beyond for my brother and fought tooth and nail for him and his son in court For that we will forever be grateful to him. He reminded the court and the judge the importance of a Father’s role and how imperative this role plays in a child’s life. Not only did he get my brother his son back but he won him sole custody, something that is extremely rare and speaks to the expertise of Lorne Maclean.

Keeping in mind that most Fathers do not have a leg to stand on when taking on the legal system, Lorne never once let us give in or give up, and neither did he. My brother and our family went into this knowing we were right and what was best for his son, but proving that to everyone else is a gruelling process. I am so glad that we had Lorne in our corner and would never think twice about the decision we made to go with him. Yes, we could have been represented by someone with less fees but really, when we are talking about your child, why would you buy 2nd best and not THE best???

Thank You Lorne for everything and as I said before, we are so grateful for your passion and yes, you did protect our hearts.”
VM

I was very happy with the assistance I received at Maclean law group in Vancouver BC, A very efficient company who definately looks out for your needs.Although you go in for a consultation,they do not put you on the clock,therefore if you go over your alotted time for your consultaion they will not rush you in anyway out the door.If they are not able to help you they will send you in the direction that will serve you in the best way possible.The facebook page that has been set up and is updated regularly by Lorne Maclean is fabulous and I couldn’t have asked for a better place to go for simple questions to be answered,I swear at times he reads my mind and puts up the answers without me asking for them.THIS COMPANY WILL LISTEN TO YOU AND HELP YOU IN ANYWAY THEY CAN.Thanks again for your assistance and I will keep checking out your page on facebook.For anyone who may not know about the facebook page I’ll post the link below,check it out for great family law and divorce information”
PM

As a father of two girls who wanted to play a major role in their lives after our marriage had to come to an end, I wanted to be the best father to our two young girls. When my wife hired a lawyer to claim full custody of our girls and child and spousal support from me I sought out Mr. Lorne MacLean- who was the best family lawyer west of Manitoba according to my friend.

When I called the office, the staff ask me for $100 for an initial consultation and it was the best $100 I even spent in my life and for my family. When we started the separation and custody battles, Mr. Lorne MacLean and his wonderful staff were at my side to help me do what I felt best for our two girls. I produced all the documents that was required by me and the staff at Lorne MacLean Family took the time and effort to sort and make all the piles and piles of paperwork to make sense for the Court. In the end, I have primary residence of the girls with joint custody with my ex-wife. She pays proper child support to for our girls and I am not required to pay spousal support.

After the divorce, Lorne MacLean Family Law Group supplied good legal advice and guidance to me as a divorced father with two girls. We are coming along in life but without MacLean Family Law Group, I would have no hope in solving my issues in the family law legal system.

To any people involved in divorce including men, Lorne MacLean and the MacLean Family Law Group is your best defender of your family interests for the rest of your life. The diverse staff at the MacLean Law Firm will take care of all your family law needs.

I recommend Lorne MacLean Family Law Group to any husbands with children who are victims of a broken marriage.

J W

The Facebook website is a fantastic resource for anyone concerned or affected by family law matters. I have learned a great deal of information that has not been provided to me by other lawyers who I have either spoken to or hired. The advice provided by Lorne MacLean and the information he shares can be the difference in a person winning or losing his or her child custody or divorce case. Lorne doesn’t neglect to answer questions on the website, and communicates in an effective, concise, and uncomplicated manner. It is wonderful that people have the option of obtaining free information and answers to their questions, from such a successful and prestigious lawyer as Lorne MacLean.”
RA

Thank you again for representing me so well at our last court appearance. I am thankful for how things worked out and trust it will be a benefit in the long run. I really appreciate the outstanding work you and your staff do for me and my family! THANK YOU!! PH

WINNING BC SHARED CHILD CUSTODY ARGUMENTS

Wednesday, April 21st, 2010


I just appeared in New Westminster Supreme Court today and argued a BC shared child custody case and cited some of these shared child custody concepts which are applicable to a wide variety of cases involving disputed BC child custody ( I will report back on the results of the case and provide more shared custody tips shortly):

BENEFITS OF SHARED CUSTODY

• It ensures continuation of family life for the child, with the advantage of nurture from both parents rather than just one.
• It reassures the child that he has two parents, and although they live in separate places, the child definitely has a home with both of them.
• It dispels the notion that only one parent is “caring” and that the other is “errant” or “absent”.
• It ensures that one parent is not unfairly burdened with the responsibility of discipline whilst the other is relegated to (or marginalized as) the fun or mere access parent.
• It provides the opportunity for children and parents to develop meaningful and lasting relationships – in place of the artificiality and frustrations of mere access.
• It affirms the parents in their belief that they both have an ongoing role in their child’s life.
• It places both parents on an equal footing with schools, doctors and the world at large – who might otherwise only want to deal with the custodial parent.
• It confirms that no matter what, each parent wants to, and is able to, provide a home for their child.
• It reassures the child that in the event of one parent dying they still have a home to go to.
• Without such an order, if one parent dies, the child would not automatically go to live with the other parent, but would be left with whoever they were living with at the time or handed over to a guardian – a poor substitute for a natural parent.
• It enables both parents to claim the additional personal tax allowance (and possibly one parent benefit, family credit and additional child benefit), thus increasing the income available to the children (only applicable for two or more children).

I believe that children should not have to forfeit the love and guidance of two caring and concerned parents merely because marriage breakdown has occurred. Please call us at 1-877-602-9900 if you have a disputed custody case and watch our videos on a variety of topics.

BC CHILD CUSTODY and BC CHILD MOBILITY UPDATE-Moving a Child Away

Tuesday, April 20th, 2010

Summer at MacLean Family Law Group's Fort St John BC Office

BC Child Custody and BC Child Mobility or change of residence cases often involve the need by one parent to move themselves and their child away from their existing residence- classified as BC child mobility or change of residence- to return to be closer to family support, to move away to obtain a promotion or to accept a required transfer, or to move with a new partner for one of the same reasons. What is good for one parent -and possibly for the child whose life is bound inextricably with the parent- is often the exact opposite for the other parent and possibly for the child as well. In cases where one parent is the sole custodian and the other parent has limited involvement, the decision to allow a parent with custody to move away is an easy one but those cases are rare. I often tell the courts we have a wonderful child with two great parents and that shared custody is the best possible outcome but how can you maintain maximum contact by the child to both parents if one parent and the child are allowed to move away?

In the past the court looked at the option of deciding whether the parent and child could move or whether they would be forced to remain “prometheus bound” to their present location despite lost opportunities to improve the moving parent’s life. If the court allowed a parent to move away with the child its’ result would largely sever maximum contact to the parent who remained behind in the original location.

A recent BC Court of Appeal decision has approached the problem of child mobility by adding a developing concept the writer and other lawyers have postulated for some time:

1. Consider whether both parents should remain in the same location;

2. Consider whether one parent and the child should move away;

3. Allow the parent who wants to move to move but leave the child in the care of the remaining parent-this often
forces the parent wanting to move to pick between sacrificing their career or their custody of the child;

4. Consider whether both parents can move to the new location and maintain the same regime
of care and control of the child as was in place in the old location.

I have often argued that plans to move are ill conceived and offer no clear benefit over the current regime. I have also argued- in cases where the access parent is unemployed and/or providing little positive parenting assistance or financial aid- that a move with a new partner to a new location or by one spouse to a new city with a solid financial upside that the move should proceed and the parent who has no job or a nominal income could easily move there and do as well in the new location and maintain the existing contact with their child.

The recent BC Court of Appeal decision of S.S.L. v. J.W.W., 2010 BCCA 55 set out how all four approaches must be properly considered by a trial judge in a child focussed approach.

Discussion

[21] The point of departure in Canada for any parental mobility case must be the Supreme Court’s decision in Gordon. In Nunweiler, this Court was clear that the approach set down in Gordon to a custodial parent’s variation application was to be taken, insofar as applicable, to an original application regarding children whose parenting they had been sharing.

[22] However, as the plethora of judgments that have applied Gordon demonstrate, the factors listed at para. 49 in the judgment of McLachlin J. (as she then was) provide insufficient guidance for two good parents, their counsel, and the trial court as they face the agonizing decision required in two circumstances: (1) a pre-school age child who has been in the primary care of one parent (usually the mother) where age-appropriate access is unworkable if one parent moves away (Karpodinis v. Kantas, 2006 BCCA 272, leave to appeal refused [2006] S.C.C.A. No. 318; Hanna v. Hanna, 2002 BCCA 702), and (2) a joint parenting situation where one or both parents’ needs (economic, educational or personal) are seen as requiring a change.

[23] This case falls within the second group, in some of which, as here, the only issue is the child’s primary residence, because the parents agree that joint guardianship and joint custody should continue.

[24] In my view, the court’s task in these joint parenting cases is to analyze the evidence in four possible scenarios, in this case, (i) primary residence with mother (London, Ontario); (ii) primary residence with father (Victoria, B.C.); (iii) shared parenting in Victoria; and (iv) shared parenting in London, but to do so knowing the court’s first task will be to determine which parent is to have primary residence. When the question of primary residence is evenly balanced and the court finds the best interests of the children require both parents to be in the same locale, then the court will need to choose between the shared parenting options offered by the parents, without presuming the current care-giving and residential arrangement is to be the preferred one.

[25] Proximity of parental homes will usually be in the best interests of children with two good parents. But proximity may be achieved in either proposed location. The choice of the existing location cannot be the default position. In Woodhouse v. Woodhouse (1996), 136 D.L.R. (4th) 577 (Ont. C.A.) at para. 89, Osborne J.A. observed in dissent (at para. 89):

[89] … Balancing the relevant factors is required in order to accommodate the broad post-separation spectrum of parenting arrangements with which courts will be confronted. It is essential, I think, that the process be flexible and realistic. In some cases, when the relevant factors are balanced, it will be appropriate to deny the custodial parent the right to move with the children. In other cases, asking the non-custodial parent to move may be more in the children’s best interests than requiring the custodial parent to stay. Consistent with the majority judgment in Gordon, I do not think that any one of the relevant factors should be viewed as dispositive so as to automatically determine the outcome. [Emphasis added.]

[26] Authorities in other jurisdictions reveal similar views. In U. v. U, [2002] HCA 36 at paras. 175-76, Hayne J. wrote, in concurring reasons for the High Court of Australia:

[175] When one parent (for whatever reason) wishes a child who is, or is to be, resident with that parent to move to a place distant from the other parent, it should not be assumed that that other parent cannot, or should not, contemplate moving to be near the child. There may be (and for all that is known, in this case there was) compelling reason for that other parent (here, the father) not to move, but it would ordinarily be expected that these reasons would be explored in evidence and the validity of any assumption that the other parent will not move would be examined. Just as, in this case, the mother was asked what she would do, if she could not have the child reside with her in India, so too it might have been expected that the father would be asked what he would do, if the mother were to have the child reside with her in India. Such questions should not be treated as mere forensic tests of parental devotion, to which only one answer is seen as being satisfactory proof of being a loving parent. Rather, they are no more than a prelude to a deeper inquiry about where the best interests of the child may lie and what arrangements will best serve those interests.

[176] It is now recognised as self-evidently true that, apart from some cases of abusive relationships, children benefit from the development of good relationships with both their parents. The right to know and be cared for by both parents and the right of contact on a regular basis with both parents are said to be principles underlying the objects of Pt VII of the Act. If effect is to be given to those principles, it must not be assumed that one parent (the father) cannot move and that the mother must, in every case, subordinate her ambitions and wishes, not to the needs of the child, but to the wishes of the father to pursue his life in a place of his choosing. It is the interests of the child which are paramount, not the interests or needs of the parents, let alone the interests of one of them.

[Italic emphasis in original; underlining emphasis added.]

[27] See also Tropea v. Tropea, 87 N.Y.2d 727 (1996) (N.Y. C.A.); and Payne v. Payne, [2001] EWCA Civ 166 (U.K. C.A.).

[28] This approach to the evidence of both parents avoids the problem of the “double bind” described recently in Bourgeois v. Plante, 2009 PEICA 12 at para. 32:

… Various courts have cautioned that it is problematic to rely on representations made by the custodial parent that he or she will not move without the children should an application to relocate be denied. This inquiry is commonly called the “classic double bind.” If a parent responds by stating they are not willing to remain behind with the children, this raises the prospect of the parent looking after their own interests and not having the interests of the children paramount. Then, on the other side of the equation, if a parent advises the court that they are willing to forego a move if unsuccessful, this suggests that such a move is not necessary for the well being of the parent or the children. If a trial judge mistakenly relies on a parent’s willingness to stay behind “for the sake of the children”, the status quo becomes an attractive option for a judge to favour because it avoids the difficult decision the application presents. See: Spencer v. Spencer, supra.

[29] In cases like this where courts are called upon to make what one judge has called an “educated prediction” (McArthur v. Brown, 2008 BCSC 1061 at para. 161) as to the best interests of the children, based not only on evidence of their old life, but also evidence of what parents believe will transpire in their new life, the parents’ evidence should focus on all of the four possible scenarios.

[30] Such an approach takes into account the court’s inability to order a parent to stay or move and the unfairness of preferring the obstinate over the more flexible. It requires the court to set down his or her analysis of the evidence and the decision path so the parents (and ultimately the children) can understand not only the result but how one of the most important decisions in their lives was made.

[31] In evenly balanced shared parenting situations, careful and transparent analysis of the evidence and reasoning is especially important, if courts are to encourage joint parenting following separation and discourage jockeying for position by the parent in a favoured position (very often mothers because of their historic role in a family) who wants to avoid being frozen in a current location by the co-operative approach generally thought ideal for young children, particularly those not yet well bonded to their father. It acknowledges that the lives of families must accommodate change.

[32] This approach takes the focus away from the time factor that bedevils so much of family post-separation litigation. While courts have said consistently for years that the amount of time, measured in days, over-nights, and sometimes hours, is only one of many factors to be considered in determining care-giver roles, this case exemplifies how it can come to dominate a trial to the exclusion of more important child-centred evidence as to the best parenting arrangements in the circumstances as they are and can reasonably be foreseen to be. Far more significant is the role each parent has played in the children’s lives; which parent has taken primary responsibility for their health, safety, education and overall welfare; which parent deals with the mundane but necessary arrangements of their lives – clothing, haircuts, extracurricular activities, gifts for friends, doctors’ and dentists’ appointments, contact with their extended family; and which parent has the best perception of the emotional needs of the children. In sum, what it is that each parent contributes to the children, as care-giver. Only when those contributions are made clear will an understanding be reached as to what arrangements will work best for the children going forward. The analysis of the parent’s role is fundamental to the determination of a primary care-giver, whether continued shared parenting is in the children’s best interests, and where they should live.

[33] I note that in this assessment of each parent’s contributions to the care of their children, it is inevitable the court will be required to assess the resources available to each, in personal and economic terms that permit them to make those contributions, and the potential effect on those resources in each proposed scenario. As many courts have noted, this may require an assessment of a parent’s emotional and economic prospects because children’s interests are necessarily intertwined with those of their parents: Burns v. Burns, 2000 NSCA 1.

[34] Finally, this approach permits the decisions of each parent to receive the respect to which his or her parenting roles entitles them.

If you have a BC family law case involving child mobility call me, Lorne MacLean at 1-877-602-9900 toll free.

BC Case Alert-Unmarried Couples, BC Marriage Like Relationship and BC Spousal Support

Monday, April 19th, 2010

Lorne MacLean Vancouver BC Divorce lawyer


P.P.W. v. R.S.L.B., 2010 BCSC 58 – 2010/01/15
Is an interesting BC unmarried couples, BC common law and BC marriage like relationship case where the BC Supreme Court had to determine if unmarried parties lived in a “marriage like relationship” for a period of two years sufficient to justify entitlement to a spousal support award. The court viewed the evidence of separate residences, some overnights together, sexual exclusivity, vacations together, no joint bank accounts although there were financial benefits provided tithe Plaintiff as well as the dysfunctional relationship and held while the alleged “wife” wanted there to be a “marriage like relationship the Defendant alleged “husband” did not and the Court dismissed the alleged “wife’s” claim for support and property division under trust law. The Court reviewed the key cases on what needs to be proven to succeed on a common law support claim.

96] The FRA also provides the definition for spouse:
“spouse” means a person who
(a) is married to another person,
(b) except under Parts 5 and 6, lived with another person in a marriage-like relationship for a period of at least 2 years if the application under this Act is made within one year after they ceased to live together and, for the purposes of this Act, the marriage-like relationship may be between persons of the same gender,
(c) applies for an order under this Act within 2 years of the making of an order
(i) for dissolution of the person’s marriage,
(ii) for judicial separation, or
(iii) declaring the person’s marriage to be null and void, or
(d) is a former spouse for the purpose of proceedings to enforce or vary an order.
[97] The law concerning the definition of spouse under the FRA is quite settled, with Gostlin v. Kergin (1986), 3 B.C.L.R. (2d) 264 (C.A.), remaining the authority on the matter. The focus of the analysis is on the parties’ subjective intentions to live in a marriage-like relationship, looking to objective factors to assist in this determination. Absent clear evidence of the intention of the parties, no one objective factor is determinative. For the most part, each case is factually unique, and therefore must be judged on its own circumstances.
[98] In Gostlin v. Kergin, the Court of Appeal stated at 267 that upon marriage, individuals assume the support obligations contained in the FRA, and that absent marriage, these obligations should not be thrust upon individuals unless they live together for at least two years as husband and wife in a marriage-like relationship.
[99] Lambert J.A. stated at 269 that when it comes to determining whether an individual is entitled to spousal support under the FRA, it is an all-or-nothing examination:
If the relationship had the characteristics of a true marriage throughout the period of at least two years that is required by the definition of “spouse”, then the parties lived together as husband and wife and there is an entitlement to claim maintenance or support. If the relationship did not have those characteristics, there is no entitlement. And there is no middle ground where the relationship has only some of the characteristics of a true marriage with the result that there is a diminished entitlement. [Emphasis added.]
[100] Takacs v. Gallo, [1998] 9 W.W.R. 235 (B.C.C.A.), provides useful direction to a court in determining if a common-law relationship exists between the parties. Newbury J.A., for the majority, states at para. 53:
The starting point in this province for the analysis required in cases of this kind is the judgment of this court in Gostlin v. Kergin (1986) 3 B.C.L.R. (2d) 264, and in particular, the comments of Lambert J.A. at 267-8 which are quoted in Madam Justice Huddart’s judgment. I read those comments as focusing first on the intentions of the parties to live “as husband and wife”, or in a marriage-like relationship. Such an intention may or may not include financial dependence. The various “objective indicators” referred to in Gostlin were advanced as a means of divining those subjective intentions where the latter “prove elusive”. By the same token, of course, subjective or conscious intentions may be overtaken by conduct such that whilst a person living with another might not say he or she was living in a marriage-like relationship, the reality is that the relationship has become such. [Emphasis added.]
And continued at para 55:
In both Gostlin and Fitton, the question of whether persons were living together as spouses notwithstanding that they were not legally married involved the court in an examination of their intentions and not simply an objective assessment of whether their financial and living arrangements were “intertwined”. If the Legislature had intended the latter, it would have been an easy matter to so state. Objective factors will of course be relevant to determine the parties’ intentions as Lambert J.A. noted in Gostlin but those factors will rarely be determinative in and of themselves. Many combinations of people may live together and meet many of the criteria set forth in Molodowich v. Penttinen (1980) 17 R.F.L. (2d) 376 (Ont. Dist. Ct.), but without intending or in fact entering the kind of psychological and emotional union that one associates with marriage. [Emphasis added.]
[101] Thompson v. Floyd, 2001 BCCA 78, is often cited for confirming that despite the change in the wording of the definition of spouse under the FRA, the Gostlin inquiry remains the authority and that other cases are helpful in determining whether a spousal relationship exists, but each case must be judged on its own facts.
[102] This is the legal framework often employed in determining the existence or not of a common-law relationship under the FRA.
[103] In order to establish an entitlement, the plaintiff must prove that she and the defendant lived together in a marriage-like relationship for a period of at least two years prior to the commencement of her claim.

We recommend you contact us immediately if you are considering entering into a marriage like relatiuonship or are in one that is breaking down as there is a1 year time limit to apply for relief.

Adultery and Misconduct in BC Divorce and British Columbia Separation

Monday, April 19th, 2010

Lorne MacLean- Divorce Lawyer- brings a Fresh Perspective to Your Case


Many BC divorce and British Columbia Separated parents involved in a BC child custody case think their chances of receiving child custody, more or less support, or a larger share of the family property will change if their spouse has had an affair.

In reality an affair has little if any impact on the issues surrounding marriage breakdown. In the infamous case of Leskun we acted for husband who had had an affair and we were successful in the Supreme Court of Canada in upholding the principle that a spouse’s affair was irrelevant to the issues of spousal support unless it could be proven, supported by medical evidence, that the affair had a negative financial impact the other spouse that prevented them from earning what they normally would have earned. The ability of one spouse to sue the other spouse or mistress for damages for an affair or for “alienation of affection” was long ago abolished in British Columbia. While there still is the ability to sue for damages for physical and mental abuse in British Columbia, the Supreme Court of Canada has narrowed the scope of this claim in their decision of Frame v. Smith.

We warn our spouses that a new relationship during the end of a shaky marriage or immediately after the marriage has broken down can negatively impact a child custody claim if it is shown that the new person is introduced too soon into a relationship or that the new relationship distracts the separating spouse from focusing on their children and putting their children’s interests ahead of their own. A new relationship can also impact and reduce a receiving spouse’s claim for support under some circumstances. We want people to go slow as it is imperative people do not “jump from the frying pan into the fire”.The existence of a new relationship often will not help promote a quick settlement so this is a critical factor to consider as well!

Some people argue that Canada should return to the old fault days of divorce where misconduct resulted in negative consequences to the offending spouse. As an example of what might happen if Canada were to return to the antediluvian days of fault we point to the recent decision in United States below.

Wife’s $9m victory in adultery case warns mistresses to ‘lay off’: Cynthia Shackelford, 60, was awarded the unprecedented sum by a jury in the United States for damages to her feelings under an obscure 19th century adultery law; North Carolina is one of seven states in America where the so-called “alienation of affection” law is still in force. It evolved from common law under which women were classes as property of their husbands. As property, they were something that could be stolen. The award was made against Anne Lundquist, 49, an administrator at a private school, who was accused of having an affair with Allan Shackelford, a 62 year-old lawyer who had been married to Mrs. Shackelford for 33 years. The jury awarded her $5 million compensation and also awarded $4 million in punitive damages to be paid by Miss Lundquist. Miss Lundquist, who is now the dean of students at Wells College, in Aurora, New York, did not attend the court hearing and said she had not even been told it was happening. She is appealing. She said: “I’m so caught off guard by everything. I don’t have a lot of money, so where this $9 million comes from is kind of hysterical.” “My main message is to all those women out there who might have their eyes on some guy that is married to not come between anybody,” Ms. Shackelford told “Good Morning America”. “I wanted other people to understand, before they do it, how much it hurts.” Lee Rosen, of the Rosen Law Firm in North Carolina, said the state has around 200 “alienation of affection” claims a year. He said: “If your spouse is going to cheat, you really would like them to cheat with somebody who has a lot of money.”
As reported in:
Coffee Break – North, Fort St. John, Vol. 1.23 March 27-April 4, 2010

WHAT INCOME IS USED FOR BC SPOUSAL AND BC CHILD SUPPORT FOR A SELF EMPLOYED BC OWNER OF A BUSINESS?

Sunday, April 11th, 2010

Warning-Pre tax profits are the default guideline income for spousal and child support.

We often warn our family clients involved in a BC spousal or child support case that the tax return of a BC self employed spouse does not present an accurate picture of the income that the court will use for determining guideline income for BC child and BC spousal support. Recent cases presume that pre-tax profits are available to pay child support or spousal support from the company the paying spouse owns unless that spouse proves a need to keep profits in the company to advance legitimate company objectives.

In the recent case of Purvis v. Purvis 2009 BCSC 1794 the husband successfully overcame the presumption that pre-tax corporate income will be imputed to a payor when they own or control a company.

This case involved an action by the husband for a review and retroactive variation of a 2002 order for child and spousal support payments. The husband unilaterally decreased the support payments in 2003. The wife claimed that the husband had failed to make accurate financial disclosure for the annual review, which was a term of the Mediated Settlement Agreement incorporated into the 2002 order. She sought payment of outstanding arrears for support and that the husband’s income include pre-tax corporate profits from his holding company. The husband’s 2007 and 2008 income were the years in dispute.

Retained earnings or funds needed to operate?
The husband claimed that for the purpose of tax planning, the company Praetorian Construction Management (Praetorian) paid annual dividends to its shareholders to reduce its retained earnings. The dividends were paid as income to the husband’s holding company Tukcon Holdings Inc. (“Tukcon”). The court examined the pre-tax earnings and the retained earnings for Tukcon, the latter showing a shareholder loan for $730,916 owing from Praetorian. The husband said that Praetorian was not in a position to repay the shareholder’s loan to Tukcon and therefore Tukcon could not pay out the retained earnings balance to its shareholder (the husband).

Application of the law
In applying Section 18 of the Child Support Guidelines the court mentioned Hausmann v. Klukas, 2009 BCCA 32, where it had been held that if there is any evidence of legitimate calls on corporate income for the purpose of continuing the operations of the business the income will not be included in determining annual income thereby “not killing the goose who lays the golden egg” (Baum v. Baum [1999] B.C.J. No. 3025 B.C.S.C.)). The court in Hausmann (supra) said that where a corporation is owned and controlled by the payor spouse, there is a presumption that pre-tax corporate income will be available to a payor in the absence of evidence to the contrary.

Control of the company
In determining who controlled the holding company, Tukcon, the court found that the husband did not present evidence to reveal the extent to which the previous non-voting shareholder (his ex-common law spouse) was involved in the company pre-2009 and that from 2009 he was Tukcon’s only shareholder. Tukcon was one of the 3 companies who owned Praetorian, for whom the husband was the President and the key employee for obtaining new contracts,

Retained earnings required to continue operations
Applying Hausmann (supra), the court found that the husband had to rebut the presumption. On the evidence submitted by the husband’s accountant, the court found that the amount of $700,000.00 in 2007 was legitimately retained by Tukcon to enable Praetorian to continue operations and was not imputed as income to the husband. However, the evidence did not defeat the presumption that the remaining pre-tax profits for 2008 and the pre-tax profits for 2007 and these amounts were imputed as income to the husband.

Support applied retroactively
On another issue, the court cited case law that supports the proposition that retroactive awards should not reach back farther than three years from the date of notice to the payor parent, unless there is blameworthy conduct on the part of the payor D.B.S. v. S.R.G. 2006 SCC 37. The effect of not disclosing a material change in circumstances (his increased income) resulted in the husband having to pay support retroactively to the date when his circumstances changed in 2003. The wife had the reasonable excuse for not bringing her claims earlier of caring for the children and making attempts to become self-supporting.

It is important you call us for advice if you have a support case involving a shareholder, director, or owner of a company.

JP

What Family Property is Shared when we Divorce? BC Family Assets Defined

Friday, April 9th, 2010

When you divorce BC family asset property like the “Wedding Van” above can be divided, most often equally, if they fit the following criteria in one or more of the following ways:

1.s. 58(2)— BC family asset property ordinarily used for a family purpose;

2.s. 58(3)(e)—a venture which fits the BC family asset definition to which the spouse has directly or indirectly contributed; and

3.s. 59—property used primarily for a business towards which a direct or indirect contribution was made by the other spouse to the operation of the business which makes it a divisible BC family asset.

The British Columbia legislation is broad and will capture most property in a marriage but not all. The onus is one the spouse alleging it is not a family asset to prove it is outside the scope of the above factors.

Call us if you have questions on what assets are or are not to be divided upon marriage breakdown. Note different rules apply to unmarried spouses.

BC Separation Law for Divorcing and Separating Common Law and Unmarried Spouses

Thursday, April 8th, 2010

Lorne MacLean Vancouver BC Family Lawyer


We as British Columbia family law and BC divorce lawyers as well as lawyers acting for unmarried couples are often asked to explain the differences in law that applies to divorcing as opposed to separating unmarried couples.

There are several differences between the legal rights of individuals separating from a marriage versus those that are separating from a Common Law relationship. In this article a very brief synopsis of some of the most significant differences will be highlighted. Please note that this should not to be considered as legal advice that is necessarily relevant to your own situation. Should you be considering a separation or are in the midst of a separation we urge you to seek legal advice as soon as possible.

In British Columbia you must cohabit 2 years in a marriage-like relationship before you are considered as being in a common law relationship. If the common law nature of a a relationship is disputed by one party, the Court will embark on a consideration of all factors regarding the relationship to establish whether it fits under this definition. The facts considered will include but not limited to the sexual involvement of the couple, their economic codependence, roles played by each party (ie. homemaker and breadwinner) and whether there are any children borne of the relationship.

1. Property

When married couples separate, no matter how long the marriage, pursuant to section 56 if the Family Relations Act the parties have a presumptive one-half interest in all family property. While under section 65 of the Family Relations Act one or both separating couples may request a reapportionment of assets in their favour, the fact is that the Courts must be persuaded to depart from the presumptive equal splitting of property. This means that with married couples, upon separation property division is somewhat simplified in quantum percentage save for the rare time when there is evidence to suggest that it would be unfair to proceed with the equal division.

All of the assets, property and debt in a marriage are presumed to be family assets and up for division. A party must demonstrate that the exclusion of an asset, property or debt in the division (or reapportionment) is appropriate or else it will be thrown into the pot for consideration.

Conversely, when common law couples separate, there is no presumptive equal split of family assets. As a matter of fact, there are no “family” assets per say, but rather a bundle of assets or property in one or both parties’ names which must be plodded through to determine the quantum of ownership that is appropriate in a given situation. One (or both) parties must claim their stake in the assets or property by arguing that the other party has been unjustly enriched by their own contribution. In basic terms, what needs to be established is that one spouse has been enriched, there is a corresponding deprivation to the other spouse, and there is no legal reason for the enrichment.

This argument can attach to all sorts of assets or property, including but not limited to real property (ie. land and home), vehicles, RRSP’s, pensions and bank accounts.

In common law separations the equitable relief of quantum meruit is generally sought alongside unjust enrichment and roughly translates from Latin as “reasonable value of services”. The approach when arguing this relief usually takes the form of establishing the fair market price for such services as housekeeping services, cooking and child rearing, which in some cases can be attached to the trust claim for unjust enrichment as a means of strengthening it or used in the alternative to such a claim (ie. 10 years at $2000 a month average services rendered established and then this claim settled by a portion of the proceeds of sale of the home).

What is disturbing to many common law parties who apply to Court to enforce their legal rights is that unlike married couples, they may have to first prove the common law nature of their relationship (using the factors listed above) and then they must prove their contribution to assets and property which they always were assured of or assumed they had an equal share in. The Court process may include providing proof from a non-title party to a home of the following services rendered when it comes to the home: gardening services, renovations undertaken, money invested and maintenance services. It can get as tedious as reviewing bills for renovation supplies to see who paid them and having 3rd parties testify to who they saw sweeping the deck and clearing the bushes every Saturday and also what might be charged for such services.

2. Spousal Support

As mentioned above, a common-law partnership is only established in British Columbia after 2 years of a marriage-like relationship. It is only after this two-year mark that upon separation one party can claim spousal support from the other. It is important to note that unlike in marriages, the decision to seek relief of spousal support in Court must be made within 1 year of separation. There is no such deadline upon marriage separation nor is there a minimum length of marriage before one party can receive spousal support from the other. In theory, while rare, a party that was only married for a few months and did not cohabit prior to marriage can request and receive spousal support from the other.

The amount and length that one party receives spousal support from the other is determined in identical fashion in the breakdown of common law relationships and marriages.

3. Child Support

There are no significant differences in basic child support received by parties who were in common law relationships versus those in marriage. The amount and length are determined in identical fashion in the breakdown of common law relationships and marriages.

4. Custody and Access

There are no differences between the manner in which these issues are determined in common law relationships versus those in marriages. The determining factor is the best interests of the child(ren).


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