Unlocking Estate Mysteries: A Toronto Estate Lawyer Reveals Hidden Dangers in Divorce & Property Ownership

Navigating through a divorce can be a challenging and emotional journey. It's even more complicated when you must consider property rights and plan your estate accordingly. The story of a divorced Toronto couple illustrates the complexities of these issues and underscores the importance of getting sound advice from an experienced estate lawyer.

The couple divorced, and post-divorce, the husband decided to write a new will in which he did not include his ex-wife. Tragically, he committed suicide shortly thereafter. Due to incomplete instructions and asset listing from the husband's lawyer, complications arose.

The property they owned was held jointly, with a built-in right of survivorship. This means upon the husband's death, the property would naturally transfer to the surviving ex-wife. However, this right can be removed through a 'severance of joint tenancy'. This is where factors such as the possibility of outliving the ex-spouse are considered.

Severing joint tenancy isn't as simple as making a declaration in a will. It can only be done through a transfer, an agreement, or a mutual course of conduct, where both owners treat their ownership as tenants in common. A common mistake some family law lawyers make is making a without prejudice offer, with no formal agreement. However, an exchange of negotiations shows both parties are treating their ownership as tenants in common, which can sever the joint tenancy. Before offering to buy out the spouse, it's vital to get instructions to sever the joint tenancy.

Another area of potential oversight is registered savings plans. In the couple's case, they both had named beneficiaries. These designations aren't overridden by the will. Under the Succession Law Reform Act (SLRA), a general revocation is acceptable as a designation can be referred to generally.

When dealing with life insurance, it's important to note that it's governed by the Insurance Act, which has more stringent requirements.

This case is a sobering reminder of the importance of thorough estate planning, especially after a major life event like divorce. If you're in Toronto and need advice on estate planning, reach out to a knowledgeable estate lawyer. They can help navigate these complexities, ensuring you're well-prepared for the future.