Court

I INHERITED my father’s
cottage last fall, but as yet
have made no plans for our
family to use it.

My probtem is my marriage has
been pkaky for the last two years
at least. Im fact my husband and f
separated for three months ap-
proximately owe year ago but rec-
oaciled. We seem to be having the
same old protvlems once again
which are his drinking and his not
coming bome unti! one or two in
the moming a couple nights per
week,

Other than my interest in our
heme aud my possible interest in
my husbard’s pension at his work
I have po assets. At the time of
our last separaiion be refused to
give me adequate maintenance for
myself and our two teenage
children

Wehat “should E do with the cot-
tage, keep it or sell it? I really
would like my children and my
husband to enjoy it as i¢ is a
beautifal residence well beyond
that which we would normally be
able to afford.

You can ask your husband if he
would enter into a marriage
agreement whereby he agrees that
_your cottage property would not
‘be a family asset and that he
would never claim an interest in
it. That, however, does not ensure
-that he would not get an interest
in the property if he was to apply
pursuant to the provisions of the
‘Family Relations Aci to a court as
a court may vary any agreement if
the presiding judge feels the
agreement is unfair.

The test of fairness is not well
defined and, if recent case law is
any indication, is at best un-
prediciable. A deal isn't necessari-
ly a deal in matrimonial matters in
this province, unfortunately. ©

The other solution if you do not

. Wish to take a chance on ar
. agreement is to sell the cottage
and keep all of the funds totally
separate and not ever use them for
any ‘family purpose. However,
.even that-is not foolproof. Our
family law is in a very unsettled
- period at the moment, precluding

Certainty in individuals arranging
. OF settling their own affairs

without court involvement.
My husband and I own a

business that has been very pro-
sperous in the past and holds
assets that may appreciate
dramatically in the next 10 years.
We have been in the process of
turning the administration of the
business over to our second oldest
son.

Ail of our three children work
in the business and have for sev-
eral years. Our daughter is learn-
ing the accounting procedures and
will soon, I hope, contro! that
department.

We wish to freeze the value of
our shares in the company giving
our children shares that will grow
in vaiue.

My second oldest is married
with children and my daughter is
about to merry. Does the Family
Relations Act present a possible
problem to our plan if there is a
future marriage breakup between
one or more of my children and
their spouse? What can be done?

When you have a business in-
terest owned by a married person,
there is a very real possibility of
that person’s spouse getting an in-
terest in that business should mar-
tiage breakup occur.

In a closely held family business
the problem is magnified You
may wind up with a non-family
minority shareholder exercising all
the minority shareholders’ righis
pursuant to the provisions of the
Company Act which would greatly
inconvenience the normal running
of the company.

If you proceeded with the plan
you are suggesting the children
should only receive non-voting
shares so that you and your hus-
band could retain control of. the
company and thereby always en-
sure that the company was run
appropriately and yielding a suit-
able income to you.

It may be wise to make it a
term of the shareholders agree-
ment that no shareholder could

’ “use or encumber his or her shares.

The shares then would not become
family assets because of use for
family purposes.

They may,

however, still

become a family asset if it. was -

found that the spouse made an
indirect or direct contribution to
the acquisition or maintenance of
the shares of the business. An in-
direct contribution would include
child—rearing and household
management.

It was thought up until recently

Later Life series made
available for purchase

THE BRITISH Columbia
Council for the Family
.recently announced the new
- Family Relationships of
Later Life series of
brochures is available to the
public.

A set of unique facilitators’
‘guides has been developed for
three-hour workshops on issues
which arise in families in later life.
These new guides focus on older
people as key players in families,
rather than isolated individuals.

These facilitators’ guides can be
purchased for $18 per kit. The

Grandparenting Relationship, The
Couple Relationship When Older
Adults Remarry, Longstanding
Marriages, The Senior Parent and
Adult Child Relationship, Rela-
tionships of Families of Choice,
and The Sibling Relationship are
the titles of the six different kits.

Complementing these kits is a
series of five brochures, which can
be obtained free of charge from
the council.

A catalogue and order forms

for these and other resources are.

available from the B.C. Council
for the Family, #204 - 2590
Granville St., Vancouver, B.C.
V6H 3H1.

LAWRENCE B. O’NEILE |

LAWYER

Personal! Injury

and Motor Vehicle Law

1 Years Experience

{Free initial consuitation)

4-8311

29
4729 E. Hastings St., Burnaby

JHARRIS THRELFALL O’NEILL

Family
Affairs

HUGH
STARK

KIRSTIE
MACLISE

that there had to be a connection
between the direct and indirect
contribution, no matter what the
contribution was, benefitting the
owner of the business interest.
Recent case law, however, has
made it unclear as to whether a
connection is necessary.

Your other remedy is to en-
courage all your married children
to have a marriage agreement
releasing the spouse’s interest in
the shares. Remember, however,

Sunday, May 10, 1992 - North Shore News - 33

that the agreement may be varied
by a couft pursuant to the provi-
sion of the Family Relations Act
if the agreement is found unfair.

It is also not simply judged on
fairness at the time of the signing
of the agreement, but curiously at
the time of the hearing to vary the
agreement which may be several
years later.

My wife is asking for a lump
sum maintenance settlement in
addition to the normai property
division. We have beer married 25
years and neither of our two
children is living at home or
dependent upon us.

It certainly is attractive to me to
agree to a lump sum payment as I
feel otherwise 1 could wind up
paying maintenance for the rest of
my life. What are the pres and
cons of this type of settlement?

There are many reasons to agree
to a lump sum. It puts a finality
to relationship. No periodic
maintenance payments means no
direct reminder of a failed mar-
riage. The amount of a jump sum
maintenance is often far less than
could be expended over the life of
a spouse.

The cons, however, are substan-
tial.

A lump sum maintenance award
san be varied and therefore it may

may vary agreement if deemed unfair

not be as final as you no doubt
hope. Lump suims are also not tax
deductible as are periodic
maintenance payments.

One of the other factors is that
once you have committed yourself
to a Jump sum payment there is

-nothing you can do if your spouse

remarries in the near future. She
gains the windfall.

It certainly is worth considering
a lump sum payment, but you
must be very careful. Practically
speaking, you must consider the
health, age and social acceptability
of your spouse.

You should also consider how
she handles her finances. If she in
fact wastes the money and
becomes impecunious, rest assured
she will be back at your doorstep
for money in the future.

The questions and answers
given in this column are for gen-
eral information only. If you have
matrimonial problems you should
seek legal advice so that your ad-
visor can assess your particular
circumstances and give you the
best advice.

Questions about family law and
estates can be directed to Stark &
MacLise c/o Family Affairs,
North Shore News, 1139 Lonsdale
aa North Vancouver V7M

4.

Legion donates to cancer society

GEORGE SCHOLES, past
president of the North Van-
couver Royal Canadian Legion
Branch #118, recently presented
a $1,060 cheque to Grace Love,
president of the North Shore
Unit of the Canadian Cancer
Society.

The money was collected by
Branch #118 members during
their annual Cancer Week
fundraising campaign.

The Royal Canadian Legion
serves veterans, ex-service per-
sons and their dependants, and
supports many community ac-
tivities. °

The North Vancouver branch

has contributed to the support
of community groups in many
ways including providing fi-
nancial donations to cadets,
youth and sports organizations,
as well as assisting with scnol-
arships and geriatric education.

The branch also takes special
interest in seniors’ issues and
has provided assistance with
care, housing and medical ser-
vices.

During May the Legion will
hold a membership drive to
strengthen the volunteers
ranks,

Volunteers are needed to
raise funds for the proposed

PARK

s RHR Oo P

Pod

construction of affordable
rental housing and a new
Legion on the property, cur-
rently owned by the branch, at
123 West 85th St.

A number of fraternal
memberships are availabie at
the cost of $28 per year. Many
social functions, dances and .
games of cribbage, snooker,
shuffleboard, bowling, — slow
pitch and bingo, as well as full
use cf the lounge and sports
bar, make a membership an
inexpensive but valuable con-
tribution.

For further information call
988-3712.

CENTRE

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