- Gifts and inheritances received by one spouse from someone other than the other spouse are excluded from matrimonial assets under the Family Law Act.
- Property is usually divided in equal shares, but a court can order an unequal split where equal shares would be grossly unjust or unconscionable.
- A signed, witnessed separation agreement can replace the Act's default rules, but a court may set it aside if a party did not disclose significant assets or debts.
If you received an inheritance or a gift during your marriage, separation can bring a worry: will your spouse have a claim to it? The answer in Newfoundland and Labrador starts with how the Family Law Act defines the property that gets divided.
This article is for married spouses. It explains what the Act counts as matrimonial assets, what it leaves out, when a court can depart from an equal split, and how a separation agreement and time limits fit in.
This article covers the law of Newfoundland and Labrador.
What the Act counts as matrimonial assets
The Family Law Act uses the term matrimonial assets, not family assets. It defines them to include all real and personal property acquired by either or both spouses during the marriage.
That is a wide starting point, but the definition has exclusions. Gifts, inheritances, trusts or settlements received by one spouse from someone other than the other spouse are not matrimonial assets. Business assets and property acquired after separation are also excluded.
The exclusion is tied to who the gift came from. A gift from your spouse is not covered by it, because the exclusion applies only to what comes from someone other than the other spouse.
The default rule: equal shares
Either spouse is entitled to apply to a court to have the matrimonial assets divided in equal shares. Because an inheritance or gift from a third person is not a matrimonial asset, it generally is not part of that pool.
Whether a particular item is an inheritance, a gift or something else can depend on the facts, such as where the money came from and how it was held. If you are unsure how an item would be treated, a lawyer can confirm.
- Likely excluded: a gift or inheritance from someone other than your spouse.
- Likely excluded: property acquired after separation.
- Likely excluded: business assets, meaning property primarily used or held for a commercial, business, investment or other income-producing purpose.
- Likely included: other real and personal property either of you acquired during the marriage.
When a court can divide unequally
An equal split is not always the result. A court may divide matrimonial assets unequally where equal shares would be grossly unjust or unconscionable.
The factors the Act lists include the duration of the marriage, each spouse's contributions to the welfare of the family, and dissipation of assets. This is a high threshold, and the outcome depends on the facts of each case.
Business assets and the compensation claim
Business assets are left out of the matrimonial asset pool, but that does not end the matter. A spouse who contributed work, money or money's worth to the other spouse's business asset may apply for compensation or a share.
This is a separate claim from the equal division of matrimonial assets. If either of you owns a business or an income-producing property, it is worth getting advice on how this claim could apply.
Separation agreements, disclosure and time limits
You and your spouse can settle these questions yourselves. A domestic contract on a matter the Act also covers prevails over the Act unless the Act provides otherwise, so a signed agreement on property generally displaces the default rules.
There are formal requirements. A separation agreement is unenforceable unless it is in writing, signed by the parties and witnessed. A court may set a domestic contract aside if a party failed to disclose significant assets, debts or other liabilities, or did not understand the nature or consequences of the contract. For that reason, a separation agreement should include full financial disclosure.
If you do not settle, the time limits for applying to divide matrimonial assets are strict.
| Event | Latest time to apply |
|---|---|
| Divorce or nullity | 2 years after the marriage is terminated |
| Separation with no reasonable prospect of resuming cohabitation | 6 years after separation |
| Death of the first spouse | 1 year after the death |
What to do next
- List what you received as a gift or inheritance, from whom, and when.
- Gather statements, deeds and records that show where the money or property came from.
- Note the date you separated, since it affects both what is excluded and the time limits.
- Write down any business or income-producing property either of you owns.
- Be ready to share full financial disclosure before signing any agreement.
- Speak with a lawyer before signing a separation agreement or letting a deadline pass.
Frequently asked questions
Is my inheritance a matrimonial asset in Newfoundland and Labrador?
Generally not. The Family Law Act excludes gifts, inheritances, trusts and settlements received by one spouse from someone other than the other spouse. How an individual item is treated can depend on the facts, so a lawyer can confirm.
Does my spouse automatically get half of everything?
No. Either spouse may apply for an equal division of matrimonial assets, and some property is excluded. A court may also divide unequally where equal shares would be grossly unjust or unconscionable.
Can we agree to something different from the Act?
Yes. A domestic contract on a matter the Act covers generally prevails over the Act. It must be in writing, signed and witnessed to be enforceable, and a court may set it aside for non-disclosure of significant assets or debts.
How long do I have to apply to divide matrimonial assets?
An application cannot be brought more than 2 years after divorce or nullity, 6 years after separation with no reasonable prospect of resuming cohabitation, or 1 year after the first spouse's death. Because deadlines can end your claim, get advice early.
Sources
- Family Law Act, RSNL 1990 c F-2 — assembly.nl.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
This is a family law question
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