January 10 – Determining Title Comes First

“TheFLAis a detailed statutory scheme for resolving issues arising out of marital breakdown. Section 10(1) provides for the determination of questions of title between married spouses. This includes consideration of any beneficial interests in property arising pursuant to the imposition of a remedial constructive trust:

A person may apply to the court for the determination of a question between that person and his or her spouse or former spouse as to the ownership or right to possession of particular property, other than a question arising out of an equalization of net family properties under section 5.

In Rawluk v. Rawluk, [1990] 1 S.C.R. 70, Cory J., writing for the majority of the Supreme Court, relied on s. 10(1) of the Family Law Act, 1986(which is identical to s. 10(1) of the current Act) to confirm that the statutory scheme for the equalization of spouses’ property on marriage breakdown does not completely supersede the remedial constructive trust. Before property can be equalized under the Family Law Act, a court must first determine the “net family property” of each spouse. This exercise requires first that all questions of title be settled.”

Martin v. Sansome, 2014 ONCA 14 at 46-47