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What changes should be made to family law?

These proposals let family law lawyers discuss and vote on what changes they think should be made to the law or court procedures. The results can be viewed and shared with legislators and the Courts. The proposals put forth are written by member lawyers, and do not necessarily reflect the views of this website or its administrators. You can view more proposals or make a proposal yourself.


Proposal: Section 36 of the FPA should be amended to oust the halving of exemptions in Jackson and Harrower
Property - Aug 13, 2021

77% in favour out of 13 votes

Ken Proudman Executive
 view Arbitrator profile
  BARR LLP
   Edmonton, Alberta


Jackson v Jackson, 1989 ABCA 197 and Harrower v Harrower, 1989 CanLII 221 (AB CA) interpreted section 36 of the Family Property Act to mean that when property is placed into a jointly-owned exemption, any exemption should be halved.

When a spouse uses their savings for the down payment on a home, they're intending to facilitate financing or reduce CMHC fees, they're not intending to lose a part of their life savings upon separation. They shouldn't be punished for doing something that helped both spouses during the relationship. Similarly, when a spouse places another spouse on the title to their home, they're likely doing so for survivorship should they pass away, or so that the other spouse can share in the growth while the mortgage is paid down during the relationship.

If a spouse really is intending to gift part of their exempt property, then clear evidence of that intention should be required. So many people are caught off guard and surprised by this rule. It's also absurd in the context of very short relationships, what if a couple is only married for a few months before separating, but the mortgage-free house is placed into joint names during that period? Why should the spouse that didn't contribute receive an enormous windfall? I've seen this scenario. This rule is just an archaic windfall to the spouse with fewer assets. But what if the spouse with the exemption is on a limited income, for example due to a disability? If the exemption is a personal injury settlement or insurance for an injury, this sum might be an award for their entire future lost income, without any chance to replenish it.


0 2 years ago

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