What is Separation?

This article is a brief and general overview about Separation. Separation is when you and your ex decide to live apart, regardless of your marital status. If you are married, being separated does not mean that your marriage has ended. A divorce is the legal process in which a court certifies the end of a marriage. 

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What is a Separation Date?

A separation date is the date when a married or common-law couple legally separate. For married and common-law couples, legally separate means that they can have their own independent finances and live apart. 

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Married Couples and Valuation Date ​

The separation date is the same as the valuation date for married couples. A valuation date is when a married couple records their finances and assets on the day they legally separate. This means that when you and your ex legally separate, whatever you and your ex own and you and your ex owe must be recorded on that day. This day is what is known as the Valuation Date. After the Valuation Date, this means that anything you or your ex own or owe is completely separate of one another. 

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What is Equalization?​

Equalization is a legal term which means that on the separation date, you and your ex calculate your own personal net worth. Your personal net worth is calculated by what you own individually minus your debt. After comparing your net worth to your exes net worth, the person with the higher net worth pays the other individual with half of the difference so that you both leave the marriage having grown your personal wealth. It is also important to note that Equalization only applies to married couples and not common-law couples. 

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What laws apply to Separation?​

 The Divorce Act is a federal law that applies to a married couple when they separate. The Divorce Act covers the conditions in which the separation will proceed with, and also addresses issues such as child support, spousal support, and parenting arrangements for children in separation cases. However, if you are not legally married and are in a common-law relationship, the Family Law Act applies to you and your ex when you separate. 

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The law related to calculating the Separation Date can be further explained in one of my blogs found here.

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For further information on how Valuation/Separation Dates are decided, check out my blog found here.​​​​​​​​