Interim Distribution of Family Property (Part 2)

Interim Distribution of Family Property (Part 2)

In Part 1 of this series, we introduced the concept of applying to court for an interim distribution of family property to fund your family law case.  Now, we will explore what factors the court will consider when deciding whether to order an interim distribution.

When considering applications for an interim distribution, the courts apply a two-part test to the case. First, they consider whether the spouse requesting the distribution has established a need for the funds in order to continue with the family law case. Second, they consider whether granting an interim distribution would harm the interests of the payor spouse.

The need for an interim distribution can be established by presenting evidence of the spouse’s weak financial standing and a budget of their anticipated legal expenses.

The Supreme Court of British Columbia has stated that “harm” to the payor spouse does not include what might be commercially inconvenient or awkward: see Negus v. Yehia, 2015 BCSC 857. For example, having to transfer funds between accounts or mortgage family property does not fall within the meaning of “harm”. The courts have interpreted “harm” to mean a payment that would negatively impact the payor spouse’s legal position in the family law case.

In Part 3 of this Series, we discuss cases where you may still be entitled to an interim distribution despite having a Marriage Agreement or Separation Agreement in place that precludes property division.

Lawyers at Hart Legal have been successful in obtaining interim distributions for their clients.  Meet with a lawyer for a free consultation to discuss what evidence will strengthen your application for an interim distribution. Please contact Hart Legal…