There are certain instances when two separate entities under the law converge. Such might be the case when it comes to family law and estate planning law in British Columbia. In some cases, business owners may put an estate freeze on their estates and depending upon how this is set up, this could affect family law in the province. Estate freezes usually make it possible to exchange shares in a business that could appreciate in value with those that are fixed.
An estate freeze can be helpful for a business owner to defer taxes if he or she has a number of shares in a business. Family law comes into play should an estate freeze be in effect if a couple’s marriage breaks down. It may make things complicated when it comes to the sharing of assets upon the dissolution of a marriage or relationship. If some of those shares were gifted to an estranged partner, many complexities can kick in and legal advice is crucial for both sides.
Shares can also be gifted while an estate freeze is in place. Any shares gifted with a marriage could be excluded when it comes to net family property. Any growth of those shares can be kept separate from joint assets of a couple.
Family law rules in British Columbia often overlap other areas of law. This may make issues even more difficult to understand. A lawyer may be able to break down the areas of convergence to better explain how they can impact a client.