Article 418 of the Civil Code of Quebec (hereinafter “C.c.Q.”) is a key legal foundation in determining and distributing the patrimonial rights of spouses during a divorce or dissolution of a civil union. This article outlines the rules for deductions applied to the net value of the family patrimony. It is therefore essential to explore the various facets of these deductions and the specific situations addressed by Article 418 C.c.Q.
Determining the net value of the family patrimony
Before addressing the deductions outlined in Article 418 C.c.Q., it is important to understand how the net value of the family patrimony is calculated. The family patrimony includes several categories of assets listed under Article 415 C.c.Q., such as family residences, household furnishings, and vehicles used for family transportation.
According to Article 417 C.c.Q., the net value is determined by subtracting the debts incurred for the acquisition, improvement, maintenance, or preservation of these assets from their value at either the date of death of a spouse or the date on which legal proceedings for separation, divorce, or annulment are initiated, depending on the case. This valuation is based on the market value of the assets at the relevant date. Once the net value is established, Article 418 C.c.Q. governs which deductions may be applied.
Deductions for property owned at the time of marriage
Under Article 418, paragraph 1, C.c.Q., the net value of any property owned by a spouse at the time of marriage that forms part of the family patrimony must be deducted from the total net value. Additionally, paragraph 2 of the same article states that any increase in value of this property during the marriage must also be deducted “in the same proportion as that which existed, at the time of the contribution, between the value of the contribution and the gross value of the property.”
Deductions for contributions made during the marriage
When a spouse makes a financial contribution during the marriage toward the acquisition or improvement of a family patrimony asset, Article 418 C.c.Q. also allows deductions in certain cases. These apply when “the contribution is made using property received through inheritance or donation, or from its reinvestment.” According to paragraph 2, any increase in value since the contribution must also be deducted proportionally, based on the relationship between the value of the contribution and the gross value of the asset at the time of contribution. In other words, this ensures a fair distribution of the growth in value based on the spouse’s initial financial contribution.
Conclusion
In conclusion, Article 418 C.c.Q. plays a crucial role in determining the patrimonial rights of spouses following the dissolution of a civil union or marriage. The deductions set out in this article provide a clear legal framework for evaluating each spouse’s financial contributions to the family patrimony.
If you have questions about the eligibility of certain deductions under Article 418 C.c.Q., feel free to contact us. We’re here to help.