It is crucial to document your date of separation in a formal manner. This can be accomplished through email, text, or written notice. Clearly state in the correspondence that the relationship has ended and that as of a specific date, both parties are officially separated. By clearly stating this information, there is no room for misinterpretation, providing a solid foundation for the legal aspects of the separation.

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When going through the separation process there are a number of things I recommend you keep in mind:

1. You can be separated even if you live in the same house

Regardless of your living situation, be aware that marriage or spousal status is not determined only by cohabitation. Just like how a couple can live together before becoming official spouses, or how a married couple can reside in different cities for personal or work reasons, where you live and who you live with does not determine your separation status. It is possible to lead separate lives while sharing the same roof, and it is equally possible to remain spouses (whether married or common law) while living miles apart from each other. Therefore, it is crucial to understand that your physical location and living arrangements do not solely determine your separation status.

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2. The two-year limitation period

As per BC Law, the limitation period for commencing a court action in cases involving property, debt, pension division, and spousal support is two years. For married couple, this time frame begins when a divorce order is granted, which typically occurs after all other issues in the case have been resolved. While this may not be a major concern for married couples, it is crucial for unmarried individuals to note that the 2-year limit starts from the date of separation. Taking prompt action is recommended to avoid forfeiting any rights to property division or spousal support. It is important to note that while there may be certain circumstances that can extend the two-year limitation, it should not be solely relied upon. It is best to seek the advice of a lawyer as soon as possible rather than wait until it is too late.

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3. Gather all your information and documents

Ensure all pertinent information and documentation is gathered at the time of separation. This includes details regarding the value of your property, any investments, outstanding debts, bank accounts, mortgages, lines of credit, and credit cards. It is highly recommended to make photocopies of all relevant documents. This will aid you and your lawyer in maintaining organization and provide a clearer understanding of the assets owned by you and your former spouse. In the province of British Columbia, all assets are divisible, making it crucial to gather this information and documentation as the initial step in reaching a mutually agreeable arrangement.

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If you’re getting separated, it is important to have a clear understanding of the procedures in BC. The information outlined above serves as a general guide to aid in this understanding. The information provided is general and should not be taken as legal advice. It is important to understand that each case is unique and specific to individual circumstances. Therefore, it may be necessary to seek legal advice that is tailored to your specific case. Please consult with a legal professional for personalized advice.

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Surrey, BC, September 29, 2024 – KSW Lawyers, a leading law firm in the Fraser Valley and lower mainland, is pleased to announce that partner Peter McCrank has been recognized as one of Canada’s Top 50 Lawyers.

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“Our firm is thrilled to have Peter receive this prestigious award,” says partner Andrew Zacharias.

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Canada's Top 50 Lawyers showcases the exceptional achievements of the country's foremost legal practitioners in each field of practice. This distinction is awarded to the top 50 lawyers per province, per practice area, serving as a testament to their accomplishment.

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“It is a great honour to be recognized as one of Canada’s Top 50 Lawyers,” says Peter.

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Coming off the heels of his recognition in the 2025 edition of The Best Lawyers in Canada, Peter was granted this award for his extensive work in Real Estate Law. Having begun his legal career with KSW Lawyers in 2000 as an articling student, Peter has been with the firm for nearly 25 years.

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“We are proud to work alongside such an accomplished lawyer in his field,” says partner Travis Brine, “On behalf of the entire KSW Lawyers team, congratulations Peter!”.

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KSW Lawyers was founded in 1973 and primarily serves clients in Surrey and the surrounding areas in matters of business law and real estate transactions. Since that time, however, our firm has grown in size and scope to be in a position to represent individual and corporate clients across a wide variety of practice areas. Today, we maintain office locations in Surrey, South Surrey/White Rock, Abbotsford, Langley and Vancouver, and our lawyers serve clients throughout the Fraser Valley and the Lower Mainland.

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To learn more about KSW Lawyers, how they help their clients, and how they can assist you in your legal matters, call (604) 591-7321 or visit kswlawyers.ca.

For more information contact:

KSW Lawyers
Email:       dholdsworth@kswlawyers.ca
Phone:     (604) 591-7321
Website:  kswlawyers.ca

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If you’re an entrepreneur with a great idea for a business venture, you’ll eventually need to decide whether or not to incorporate. Sole proprietorships and corporations are two common business structures used by small business owners in Canada. To choose the right business structure, you should understand the financial and legal implications of both.

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Sole Proprietorship

With a sole proprietorship, the individual businessperson and the business itself are legally and financially the same entity. The main benefits are that set-up and registration are generally faster and cheaper than incorporating. The biggest drawbacks are that the individual is fully liable for all debts and legal issues faced by the business, and they pay personal income tax, which is usually at a higher rate than corporate tax.

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Corporation

With a corporation, the business is considered a separate legal person from the owner. The main benefits are limited liability, in that legal and financial responsibilities lie with the corporation and not the individual, and the corporation is usually taxed at a lower rate. It can also be easier to transfer ownership of the business and to raise capital from investors.

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We generally recommend that a business owner incorporate instead of operating as a sole proprietorship.

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In BC, common-law couples are afforded many of the same rights as married couples under the Family Law Act. This includes the potential for spousal support if the relationship ends.

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Spousal support, a form of financial assistance provided by one partner to the other after separation, aims to address financial imbalances that may arise following a breakup.  Depending on the specific circumstances, this support can be either short-term or long-term.

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Common-law partners in BC can apply for spousal support if they’ve lived together in a marriage-like relationship for a continuous period of two years or have a child together.  However, spousal support is not automatically granted – it is contingent on the unique details of the relationship and the needs of the individuals involved.

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Spousal Support Entitlement

Entitlement to spousal support can fall into several categories:

1. Contractual Entitlement: arises if the couple has an agreement that outlines spousal support; courts generally honour this agreement unless it is deemed unfair.
2. Compensatory Entitlement: applies when one partner has made sacrifices during the relationship, such as foregoing career opportunities to support the household or care for children.  If these sacrifices result in economic disadvantage, compensatory support may be awarded.
3. Non-Compensatory or Needs-Based Entitlement: is determined based on financial need; if one partner struggles financially after the separation, they might receive support to help maintain a standard of living similar to what they had during the relationship.

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Courts consider various factors when determining spousal support, including the length of the relationship, the financial circumstances of both partners, their roles during the relationship, the needs of the lower-income partner, and the paying partner’s ability to provide support.  Each case is evaluated individually to achieve fairness.

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If you are in a common-law relationship and have concerns about spousal support, it’s important to understand your rights and entitlements.  Seeking legal advice can provide you with the clarity and guidance needed to navigate this process effectively and ensure your interests ar

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In British Columbia, prenuptial and postnuptial agreements (known as marital agreements), allow couples to set terms for spousal support in the event of separation, providing certainty and helping avoid court involvement.  These agreements can outline whether support will be paid, the amount, and for how long. However, to be enforceable, they must meet certain legal standards and, and courts have the power to set them aside under specific circumstances.

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Common Grounds for Challenging Spousal Support Provisions

Courts may set aside a spousal support agreement if:

• ‍Lack of Full Disclosure: Both spouses must fully disclose their financial situations.  Failing to do so could result in the agreement being invalidated.‍
• Coercion or Duress: If one spouse was pressured into signing the agreement.‍
• Lack of Understanding: If a spouse did not fully understand the agreement, particularly if they did not obtain independent legal advice.‍
• Unfair Terms: Agreements that are grossly one-sided or unfair may not be enforced.

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Further, the Family Law Act in BC and the federal Divorce Act place limits on how much these agreements can restrict spousal support. A waiver will typically be enforced unless it is determined to be “significantly unfair” under section 164 of the Family Law Act, or “substantially not in compliance” with the Divorce Act.

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“Significant Unfairness”

Even if a marital agreement was fair when signed, courts in BC may set it aside if it becomes “significantly unfair”.  This could happen if there are changes in circumstances, such as a shift in income, health, or financial needs.  When determining whether an agreement is significantly unfair, courts will consider factors such as the length of time since the agreement was made, changes in the condition, means, or needs of either spouse, and whether the agreement meets the objectives of spousal support under section 161 of the Family Law Act.

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"Substantially Not in Compliance"

For married couples, the Divorce Act allows courts to override agreements that do not align with its spousal support objectives.  The Supreme Court of Canada’s decision in Miglin v. Miglin, 2003 SCC 24, set a framework for evaluating agreements, considering factors like fairness at the time of signing, and whether the agreement continues to meet the couple’s intentions and the Divorce Act’s objectives.

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Marital agreements offer a practical way for couples to settle spousal support issues privately and avoid litigation, but they must be carefully drafted to ensure fairness and legal enforceability.  Given the complexities involved, seeking legal advice when preparing or reviewing these agreements can help ensure they meet your needs and stand up to scrutiny.

If you’re considering a prenuptial or postnuptial agreement, or if you’re facing a dispute over spousal support, our experienced family law team is here to help.  Contact us for personalized advice to ensure your rights are protected.

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KSW Lawyers, a leading law firm in the Fraser Valley and lower mainland, is pleased to announce that lawyer Aman Bindra has been featured in the 2025 edition of The Best Lawyers: Ones to Watch in Canada.

“Our firm is thrilled to have Aman featured in The Best Lawyers: Ones to Watch in Canada” says partner Peter McCrank.

The 2025 edition of The Best Lawyers: Ones to Watch in Canada covers 51 practice areas across 17 regions and highlights emerging talent in the legal profession. The award is bestowed upon a lawyer by others in their field through a rigorous peer-review process.

“It is an honour to have received this recognition for the second year in a row” says lawyer KSW Lawyer Aman Bindra who was highlighted in the Commercial Leasing Law, Corporate Law and Real Estate Law categories.

Bindra, who was previously featured in the 2024 edition of The Best Lawyers: Ones to Watch in Canada in the Real Estate Law category, gained recognition in 2 additional practice fields: Corporate Law and Commercial Leasing Law. Aman’s work spans multiple million dollar deals across the Vancouver lower mainland.

“We are proud to work alongside emerging lawyers who have demonstrated excellence in their field,” says partner Peter McCrank, “On behalf of the entire KSW Lawyers team, congratulations Aman!”

If you are in need of legal assistance in the areas of real estate, corporate or commercial leasing law, or any other practice area, please do not hesitate to contact us.

KSW Lawyers, a leading law firm in the Fraser Valley and lower mainland, is pleased to announce that four of their lawyers: Chris Drinovz, Christopher Godwin, Michael J. Weiler and Peter McCrank have been featured in the 2025 edition of The Best Lawyers in Canada.

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“Our firm is thrilled to have four lawyers across two of our locations recognized in The Best Lawyers in Canada” says partner Travis Brine.

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The 2025 edition of The Best Lawyers in Canada covers 77 practice areas across 26 regions and recognizes the professional excellence of the top lawyers in the country. The award is bestowed upon a lawyer by others in their field through a rigorous peer-review process.

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“It is an honour to have received this recognition alongside my KSW Lawyers’ colleagues” says lawyer and partner Chris Drinovz who was highlighted in the labour and employment law category.

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Drinovz is one of two lawyers based in the KSW Lawyers Abbotsford office to be featured. KSW Abbotsford lawyer Christopher Godwin was recognized in the personal injury litigation category, while KSW Surrey lawyers Peter McCrank and Michael Weiler received awards in the real estate law and administrative and public law categories respectively.

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“We are proud to work alongside such accomplished lawyers in their field,” says partner Travis Brine, “On behalf of the entire KSW Lawyers team, congratulations Chris, Christopher, Michael and Peter!”

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If you are in need of legal assistance in the areas of employment or real estate law, or any other practice area, please do not hesitate to contact us.

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When two individuals are experiencing the difficult and transformative process of ending a marriage or partnership, it can come with a myriad of questions and uncertainties. One of the more daunting aspects of this process is understanding the tax implications of paying and receiving spousal support in British Columbia. As the legal and financial aspects of ending a spousal relationship can be overwhelming, it is crucial to have a comprehensive understanding of how spousal support may affect your taxes.

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Two Types of Spousal Support in BC

In BC, there exists two main forms of spousal support that may be required when a spousal relationship comes to an end: lump sum spousal support and periodic support. Although lump sum spousal support may not be applicable in every separation, it is crucial to carefully consider the potential tax implications when it is an option. Lump sum spousal support involves a one-time payment from one spouse to the other, which covers the entire financial obligation. In contrast, periodic spousal support is paid monthly, either for a set period of time or without a specified end date. The tax ramifications of each type of spousal support are unique and should be seriously considered.

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Periodic Spousal Support

In the case of periodic spousal support, it is only considered taxable income for the recipient. This means that the person receiving support is required to report it as part of their annual income when filing their tax return. On the other hand, for the payer of the support, it is considered a tax-deductible expense. This means that they can deduct the amount they paid in spousal support from their income, thereby reducing their overall tax burden.

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Lump Sum Spousal Support

The tax implications are different for lump sum spousal support, however. This type of support is often a one-time payment intended to provide financial assistance to the dependent spouse up-front instead of monthly payments. Lump sum spousal support is not taxable for the person receiving it, meaning that the recipient does not have to report it as income. For the payor, the lump sum payment will not be tax-deductible.

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Spousal support is a very complicated area of the law, and the tax implications are just one of many considerations that must be made; the potential legal ramifications are not something that should be taken lightly. While the topic of spousal support payments may seem daunting, with the proper guidance and advice, individuals can navigate through this complex legal area with confidence. Seeking the assistance of an accountant, financial planner, and lawyer is advised to ensure all factors are properly considered, including any potential tax implications. These professionals have a deep understanding of the financial aspects of spousal support and can provide invaluable advice on tax implications and other financial considerations. So, if you are faced with spousal support payments, do not hesitate to seek the help you need to make the most informed decisions.

The province of British Columbia has seen a significant rise in income tax and GST assessments due to increased audits on real estate transactions. In 2024, the number of these files reached nearly 1,100, a stark increase from the mere 114 assessments filed in 2015.

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If you have recently sold your home, it is highly likely that you will receive a notification from the CRA through their signature brown envelopes. While some may agree with the reassessment and pay accordingly, many taxpayers may find it necessary to challenge the decision.

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So what steps should you take in this situation?

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Learn Important Dates

First and foremost, it is crucial to familiarize yourself with the deadlines relevant to your file. By the time you receive the Reassessment in the mail, the clock is already ticking, and failure to act before the time expires will result in the CRA considering the additional taxes owed as accepted. You have a limited window of 90 days from the date listed on your reassessment (NOT the date you received it) to submit an objection. But what if you have already exceeded the 90-day period? This brings us to our next point…

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Contact a Lawyer

It is imperative to seek the assistance of a lawyer who specializes in tax disputes immediately. A reputable tax lawyer can offer guidance and ensure all your concerns are addressed throughout the process. and can potentially obtain an extension for submitting the objection. Though it is crucial to note that securing an Objection may become more challenging the longer you wait to file.

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Collect Relevant Documents

Now that you understand the deadlines and have contacted a tax lawyer, your next step is to gather all relevant documents. These may include utility bills, insurance papers, and bank documents that have your previous residence's address listed. These documents will aid your tax lawyer in demonstrating that you did, in fact, reside at the property in question.

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Take Notes

Lastly, make sure to note down all the reasons and circumstances surrounding the purchase and sale of your home. This may include factors such as an expanding family, changes in the neighborhood, rising cost of living or maintaining the property, relocation for work or school, among others. These notes will serve as a helpful reminder when discussing your case with your tax lawyer.

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It is crucial to act promptly if you receive a reassessment from the CRA. Being aware of the deadlines, seeking legal assistance, and collecting relevant documents will greatly strengthen your position in challenging the decision. Remember, the clock is ticking, and timely action is critical.

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