Trustee couldn’t bring equalization claim; paramountcy doctrine didn’t come into play

Family Law – Division of property - Miscellaneous

Parties were married in 2003 and separated in 2015. Husband entered bankruptcy and trustee wished to make equalization claim. Hearing held regarding whether equalization claim could be brought. Trustee could not bring equalization claim. Equalization claim is inchoate until exercised, and once exercised, it takes on new form as “property” and is subject to Bankruptcy and Insolvency Act. Until action commences, right is not assignable and remains only as amorphous possibility. Right to equalization of net family property does not become property within meaning of Act unless and until right to commence such claim is exercised by spouse. Difference between claims which are “personal in nature” as opposed to personal as between spouses did not allow trustee to commence claim for equalization. Paramountcy doctrine did not come into play.

Rusinek & Associates v. Arachchilage & Baliah (2020), 2020 CarswellOnt 2176, 2020 ONSC 1090, C. Gilmore J. (Ont. S.C.J. [Commercial List]).

Case Law is a weekly summary of notable civil and criminal court decisions by the Supreme Court of Canada, the Federal Court of Canada and all Ontario courts. These cases may be found online in WestlawNext Canada. To subscribe, please visit store.thomsonreuters.ca

Free newsletter

Our newsletter is FREE and keeps you up to date on all the developments in the Ontario legal community. Please enter your email address below to subscribe.

Recent articles & video

Ontario Superior Court confirms License Appeal Tribunal cannot award punitive damages

Ontario Superior Court grants extension for service of expert reports in medical negligence case

Ontario Court of Appeal denies builder's request for a trial on damages in a real estate dispute

Liberal MPP’s bill aims to ‘depoliticize’ and clear backlog from Ontario’s tribunal system

Ontario Superior Court awards damages after real estate deals fail due to broker's conflicting roles

Ontario Superior Court rejects jury trial in motor vehicle accident case due to procedural delays

Most Read Articles

Liberal MPP’s bill aims to ‘depoliticize’ and clear backlog from Ontario’s tribunal system

Ontario Superior Court awards damages after real estate deals fail due to broker's conflicting roles

Ontario Superior Court rejects jury trial in motor vehicle accident case due to procedural delays

Ontario Court of Appeal denies builder's request for a trial on damages in a real estate dispute