The death of a spouse is devastating, and for many surviving partners, grief is compounded by financial uncertainty. Questions often arise about whether the surviving spouse will receive a fair share of matrimonial property, particularly if other beneficiaries—such as children from a previous marriage—are also entitled to inherit.
In Alberta, the Matrimonial Property Act (MPA), now largely replaced by the Family Property Act (FPA), gives spouses and adult interdependent partners (AIPs) certain rights to equalization of matrimonial property. These rights can directly impact estate distribution and often lead to litigation.
At Verhaeghe Law in Edmonton, our estate litigation lawyers regularly assist surviving spouses and beneficiaries in navigating equalization claims, protecting their interests, and resolving disputes.
What Are Equalization Claims in Alberta?
An equalization claim is a legal request by a surviving spouse or AIP for a fair division of matrimonial property upon the death of their partner. These claims recognize that both spouses contribute to the accumulation of family property during the marriage, regardless of who holds legal title.
Matrimonial property typically includes:
- The matrimonial home.
- Jointly acquired bank accounts and investments.
- Business interests developed during the marriage.
- Retirement savings such as RRSPs or pensions.
- And more.
Certain assets may be considered exempt, such as inheritances or property owned before marriage. However, any increase in the value of exempt assets during the marriage may still be subject to division.
Consider a scenario where a husband passes away, leaving most of his estate to his adult children from a previous marriage. His will leaves his second wife only a modest inheritance. Under Alberta law, the wife may choose to reject the will and pursue an equalization claim instead.
If she succeeds, she could receive half of the matrimonial property acquired during their marriage. This reduces the estate available to the children, often leading to litigation. Cases like this highlight why legal advice is essential for both spouses and beneficiaries when estates intersect with matrimonial property rights.
Alberta’s Legal Framework For Equalization Claims
Under the Matrimonial Property Act, and now the Family Property Act, surviving spouses and AIPs have a choice after their partner’s death:
- Accept what is provided under the will, or
- Make an equalization claim for a share of matrimonial property.
This election is time-sensitive. Spouses must generally file their claim within six months of the grant of probate. Missing this deadline can limit a spouse’s ability to challenge the division of assets.
For other beneficiaries—such as children—the spouse’s decision to pursue equalization can reduce the estate available to them, leading to disputes.
Common Disputes in Equalization Claims
Equalization claims often spark conflict between surviving spouses and other beneficiaries. Common points of contention include:
- Valuation of assets: Disagreements over the worth of the matrimonial home, businesses, or pensions.
- Classification of property: Whether an asset is matrimonial or exempt.
- Timing issues: Late or improperly filed claims.
- Competing interests: Stepchildren may feel disinherited if most assets go to the surviving spouse.
These disputes can be complex, requiring both knowledge of estate law and family property law.
The Role of Mediation, Arbitration, & Litigation in Equalization Claims
Not every equalization claim ends up in court. Mediation can be an effective way to resolve disputes privately and cost-effectively. Beneficiaries and spouses may find a compromise without the stress and expense of a trial. In addition, even if mediation does not work, parties may choose to proceed to arbitration before they undertake a full court case and trial.
However, litigation may be necessary if disagreements over property classification, valuation, or entitlements cannot be resolved. In these cases, our lawyers provide strong courtroom advocacy to protect our clients’ interests.
At Verhaeghe Law, we assist clients on all sides of equalization disputes. Our estate litigation lawyers can:
- Advise surviving spouses on whether pursuing equalization is in their best interest compared to accepting the will.
- Represent beneficiaries who may see their inheritance reduced by a spouse’s claim.
- Assess property classifications, including whether assets should be treated as matrimonial, exempt, or partially divisible.
- Negotiate settlements to avoid lengthy litigation while still protecting client rights.
- Litigate in court when a fair resolution is not possible, ensuring evidence is properly presented and deadlines are met.
By blending estate litigation experience with deep knowledge of Alberta’s family property laws, we provide clients with comprehensive support. Contact a member of our estate litigation team today for answers to your legal questions.
Contact Verhaeghe Law For Help With Your Equalization Claim or Dispute
Equalization claims under Alberta’s family property laws can dramatically impact how estates are divided. Whether you are a surviving spouse considering a claim or a beneficiary worried about losing part of your inheritance, experienced legal advice is essential.
At Verhaeghe Law in Edmonton, our estate litigation lawyers are here to guide you through these complex cases. Contact us today to schedule a consultation and protect your rights during this difficult time.