There was no jurisdiction to order sale of property prior to trial unless order was necessary to preserve asset

Ontario civil | Family Law | Division of family property | Miscellaneous

During marriage, parties had corporate structure to deal with family’s assets and businesses, which included V Ltd., I Ltd., 237 Ont. Inc. family trust, and 210 Ont. Inc.. Parties were directors of each company although wife was removed as director from V Ltd. after separation. Wife had difficult time accepting end of marriage and was subject to peace bond. Husband brought motion for interim relief, to compel wife to approve I Ltd.’s sale of solar contract, to transfer wife’s shares to husband, and to remove wife as director, or alternatively to wind up companies. Motion dismissed. There was no jurisdiction to order relief sought by husband on interim motion. Sections 9, 10 and 12 of Family Law Act (FLA) gave court wide discretion to implement judgment, but there was no judgment to be implemented yet in this case. Transfer and sale provisions in s. 9 of FLA could only be invoked to satisfy equalization payment. There was no jurisdiction to order sale of property prior to trial unless order was necessary to preserve asset. Where there was no issue as to trial, s. 10 of FLA was not appropriate basis for partition and sale. Section 12 of FLA did not give court jurisdiction to order sale of property simply because parties did not agree on how to divide it. Relief sought by husband, being compelled acceptance of sale, transfer of wife’s shares in V Ltd., 210 Ltd., I Ltd. and family trust to husband, was not available at this stage of proceedings under FLA. Husband proposed to transfer shares now without assigned value, without agreed upon valuation date, without compensation to wife until unknown later date, which would not be fair.

Marot v. Marot (2019), 2019 CarswellOnt 1531, 2019 ONSC 866, Chozik J. (Ont. S.C.J.).

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