How is property divided upon separation? Equalization Basics Part 1

Описание: Lawyer Shmuel Stern of Disclosure Clinic walks us through the basics of property division in Ontario, Canada.
In Part 1 of the series, we cover the concepts of "net family property" and "equalization".

Summary of video: This video explains how property is divided upon separation between unmarried couples through the hypothetical scenario of Jack and Jill's Lemonade Stands. The equitable doctrine of unjust enrichment is explained.

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Timemarks
0:12
Today, we will explain property division upon separation.
Topics include:
(1) How is property divided upon separation in Ontario?
(2) Is it the same for married and unmarried couples?

0:40
A common misunderstanding of property division is that each party is entitled to an equal share of the property, which is not true for either married or unmarried couples.

1:50
There are two property division methods: one for unmarried couples and another for married couples.

2:12
The property division law for unmarried couples is equitable law, focusing on fairness and applying to everyone in various relationships, whereas the property division law for married couples is legislated.

3:52
The unmarried property division law, as equitable law, can still be argued in a married property division.

4:15
We will explain property division through the hypothetical scenario of Jack and Jill's lemonade stands.

4:40
Introducing the scenario of Jack and Jill's Lemonade Stands:
− Jill had $20 cash.
− Jack and Jill each had a lemonade stand worth $10 and $50.
− Jack sold his stand for $10 and gave the money to Jill, merging his stand with hers. Jill's new stand was worth $60.
− Jack and Jill agreed to share the tips, totaling $5, all given by Jill.
− Jill gave Jack an additional $5 as a gift.
− Pete gave Jack $10 as a gift, and Jack spent $5 during the relationship.
− At the end of the relationship, Jack had $12.50, while Jill had $72.50.

11:15
For this scenario, how is property divided if Jack and Jill are NOT married?

The property division law for unmarried couples is the equitable principle of unjust enrichment.

11:44
The three-part test for unjust enrichment includes:
− One party is enriched.
− The other is "correspondingly" deprived.
In this scenario, Jill is enriched by $10 and Jack is deprived of $10.
− There is no legal reason for the above:
Gift (e.g., birthday present, engagement ring—a gift or a conditional gift?)
"Consideration" (e.g., if Jack gave $10 in exchange for Jill's teaching on selling lemonade)
Contract/debt

15:10
Generally, unjust enrichment does not apply in family law because long-term relationships make it difficult to identify and prove the three elements.

16:25
Introducing the concept of "Joint Family Venture." See Kerr v. Baranow, 2011 SCC 10. https://canlii.ca/t/2fs3h

17:32
In this scenario, the unjust enrichment includes the $10 paid by Jack to Jill and the $7.50 paid by Jill to Jack ($5 directly and $2.50 from shared tips).

18:01
This hypothetical scenario is similar to situations where couples live together, but only one owns the house while the other contributes, such as by buying a ceiling fan. The reality is more complex, as the contributing party might seek a share of the increased value due to their contributions.

19:11
Under the unjust enrichment doctrine, Jill should return $10 to Jack, and Jack should give $7.50 back to Jill.
Unjust enrichment aims to revert the parties to the positions they would have been in had the unjust event not occurred. We will discuss how to share growth in the next video on property division between married couples.

Speakers
Shmuel Stern
Disclosure Clinic: disclosureclinic.com

Heather Hui-Litwin (interviewer)
Litigation-help.com
Acknowledgements: S. Jian, (J.D. Candidate Osgoode Hall) for creating timestamps.