Joint Tenancies and Family Property: How is the Date of Acquisition Determined?
Following a separation, the parties are generally required to divide assets equally. Subsection 7(2) of the Family Property Act, RSA 2000, c F-4.7 [FPA] identifies several types of property that are exempt from distribution, including property acquired by one spouse before the marriage or cohabitation. The FPA provides that the market value of the property, on the later of the date the relationship began and the date the property was acquired, is to be exempted from distribution, but the increase in value from that date to the date of separation is to be divided justly and equitably between the parties. For property that is held solely by one spouse, the date of acquisition and valuation is typically straightforward. However, when one spouse owns property jointly with a third party, property considerations become more complex.
Background
This type of complexity was at issue in Erickson v Erickson, 2026 ABCA 253 [Erickson], where the husband held several properties jointly with his parents at the time he began cohabiting with the wife. At trial, the judge found that gifts of joint interest in property were inter vivos gifts – gifts made between the living – rather than testamentary gifts, because a joint tenancy transfers interest in the property immediately. The husband had argued that the date of acquisition was the day he obtained sole ownership of the properties upon the death of his parents, but the trial judge determined that the husband’s interest in the properties vested when the joint tenancies were created, not when title passed into his name through the right of survivorship. Consequently, the trial judge determined the date of acquisition was earlier than the date of cohabitation, and so the later date of cohabitation should be used when determining the exempt value under the FPA.
Appellate Affirmation
The husband appealed the trial judge’s decision, arguing that his parents had only intended to gift him the right of survivorship through the joint tenancy, not any of the other interest in land that comes with a joint tenancy. The Alberta Court of Appeal affirmed the trial judge’s finding that the husband had continued to make contributions and reside on the property after he was gifted the joint tenancy interest in it; this means the gift included more than simply the right of survivorship. Because it was not solely a gift of survivorship, but in fact a complete gift of interest in the land, the Alberta Court of Appeal upheld the trial judge’s finding that the date of cohabitation was the proper date for calculating the exempted value of the property. Accordingly, the Alberta Court of Appeal confirmed the trial judge’s calculation of the equalization amount payable by the husband to the wife, except for a reduction by the amount of a calculation error that was conceded by the wife.
What This Means For You
The Alberta Court of Appeal’s decision in Erickson has provided clarity to Alberta judges regarding how they should calculate the increase in value of exempt property under the FPA. Erickson made clear that the day a spouse is made a joint tenant of a property will be considered the date of acquisition, unless the joint tenancy was clearly meant to be a gratuitous gift of only the right of survivorship and the recipient does not live on nor contribute to the property.
If you own property in a joint tenancy, the court may consider your ownership to have begun the day you were added to title as a joint tenant. If your spouse owned property as a joint tenant before your relationship began, you may be entitled to a just and equitable share of the increase in value of that property from the day your relationship began, even if your spouse did not become the sole owner of that property until after your relationship started.
How We Can Help
At The Calgary Legal Team, we can help you understand your rights and obligations in a separation, and we can guide you through the complexities of family property division. If you’re dealing with a property division issue, whether you’re trying to protect your assets or seeking equalization, we can help you obtain a fair resolution.
The Calgary Legal Team is here to help!
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