Polyamory: the Blind Spot of Family Law

Family lawyers are increasingly encountering a certain category of relationships that appear to be unaccounted for in law. Polyamory is a relationship which is not confined to two partners, but rather can vary in terms of scope, commitment, and permanence. The number of possible arrangements are numerous, and can range from a simple, closed triangle of three partners, to a complex, fluid web of relationships that shift and vary in seriousness. While many engaged in polyamorous relationships tend not to bother putting it on the legal books, interesting challenges can arise when partners to such an arrangement decide to seek legal officiality. Matters can also be complicated if one or more children result from a polyamorous relationship. Although little data exists, it is estimated that roughly 1 in 500 in the United States identify as polyamorous, but this contrasts with the number of family lawyers that have encountered polyamory in their professional field: between one third and a quarter, which may indicate that demand for legal services in this unique field are particularly high.

The Gap in Legal Coverage

If both of these aforementioned figures are accurate, then this discrepancy indicates that a shortage of legal services exist specializing in the kind of family law that would meet the needs of this demographic engaged in a diverse range of relationships. This unmet legal need runs the risk of allowing Canadians to fall through the cracks of family law. Despite being few in number currently, approximately four-fifths of Canadians recognize that this number is growing, and a similar proportion agree that polyamory is becoming more publicly acceptable, which means that this service gap will only grow wider as time goes on unless more family lawyers begin to recognize the business opportunity it represents.

Above: several common kinds of polyamorous relationship configurations.

The Intricacies of Polyamory in Family Law

The complexities of polyamorous legal needs are dizzying. Imagine, for example, an open ‘triad’ type relationship where at the centre lie three partners all committed to each other, though each is free to pursue other relationships of varying seriousness. In such an arrangement, how are benefits to be determined? How is annual income tax to be calculated? In the writing of wills, how will an executor be agreed upon? If a child is born to the triad, as was the case in C.C. (Re) 2018 NLSC 71, who can be considered its parents? In many provinces, the possibility of a child having more than two parents is not considered at all. Lastly, if a separation occurs, how much and to whom shall child support be paid, if applicable? Not to mention the tangle of determining what percentage of custody each parent bears. The ability of the legal profession to answer these questions undoubtedly will rely on no small degree of creativity and fresh interpretations of old laws. Regardless of what enfolds in the Canadian court context in this niche field, it is bound to be interesting.

 

If you or someone you know is in need of assistance navigating family, estate, or another kind of law in Edmonton (or if you’re a lawyer with experience in these fields), don’t hesitate; register today with Right Legal!

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Changes Coming for Common-Law Couples in Alberta

Changes may soon be coming to Alberta’s legal framework surrounding common-law couples and how their assets are divided during separation, according to a new piece of tabled legislation titled the Family Statutes Amendment Act, 2018, which was first revealed on November 21st this year. The piece of legislation seeks to fill a gap in family law, chiefly how property division is to be handled following the breakdown of a common-law relationship. We last covered changes of separation laws in September, when the introduction of the Divorce Act (Bill C-78) shifted the focus of divorce proceedings to the well-being of any children caught in the middle and challenged ‘custody’ as a blanket term.

Common-Law Under the Current Framework

Whether a non-marital adult relationship is considered common-law or not depends on the province in question. In Alberta, a relationship becomes common-law under three circumstances, under which adult partners:

• Live together for three years
• Live together and have a child
• Decide to enter into an interdependent relationship

 

Under the current legal framework, while there are automatic property division mechanism for formally married couples seeking divorce, these provisions are not automatic for common law separations. While there is nothing legally preventing either party from seeking some form of asset division in court, finances are often tight during a separation. This is true for both married and common-law couples. Additionally, child-support ends automatically once a dependent turns 18 years of age, even if the dependent is disabled either mentally or physically in a manner that renders them reliant on their primary caregiver. Extending support for dependents in this situation cannot be done and any division of assets must be performed expensively through independent litigation. Although the rights enjoyed by married and common-law couples are similar, they are not the same in these regards, leaving common-law couples at a disadvantage.

Changes Under Proposed Legislation

The Family Statutes Amendment Act, would repeal and replace the nearly hundred-year-old Married Woman’s Act, which was passed in 1922. This antique law was the original Act which enabled women to sign contracts and own property, provisions which have since been made redundant by newer laws. The intent of the introduced legislation is to ameliorate the gap between the rights extended to married and common-law couples, which it seeks to improve by applying the same property rules to both types of separation and permitting caregivers to apply for support for adult dependents with illnesses or disabilities. In the case of dividing assets, provisions contained within the Matrimonial Property Act pertaining to the division of property would be extended equally to common-law partners undergoing separation. More specifically, this means that property gained during the relationship would be divided equally. This does not apply to property owned or acquired prior to becoming common-law. If passed, these changes are to take effect January 1st, 2020, to allow Albertans time to acquaint themselves with the legal changes.

If you or someone you know are in need of legal representation for a divorce, or is simply in need of independent legal advice for family law, don’t hesitate, contact Right Legal today to find the right lawyer for you.

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Cannabis is now legal in Canada! What’s still illegal? (Part IV)

Things that are still criminal after the legalization of cannabis in Canada

As of October 17th, 2019, Bill C-45 (Also known as the Cannabis Act) came into effect, legalizing the recreation sale and use of cannabis products in Canada. Indeed, Canada is now the largest legal marketplace for cannabis in the world! That being said, there are still plenty of things surrounding cannabis use in Canada that are still illegal.

From our article last week, we continue to explore things related to cannabis that are still illegal in Canada:

Sale of cannabis products without a licence.

Not just anyone can sell cannabis products – only those with authorization in the form of a provincial/territorial licence may do so. These are not easy to obtain and are tightly regulated. That being said, it’s perfectly legal to share your cannabis products free of charge. You’re allowed to give away up to 30 grams of dried cannabis at a time to another adult. The interpretation of this restriction gets a little fuzzy though when it comes to delineating ‘selling’ and ‘distributing’. Say you’re at a legal cannabis store and want to buy some cannabis for a friend – you’re certainly allowed to give it to that friend free of charge (so long as they are an adult and the total amount of dried cannabis is under 30 grams), but are they allowed to pay you back for it? Even though you are not making a profit from the transaction, the law is unclear on this.

Distributing cannabis through the mail.

If you’d like to legally give away some cannabis to a friend, make sure to do it in person. It’s currently illegal to send cannabis by mail without a special permit to do so.

Distributing cannabis to an organization.

While you can certainly give away cannabis to individuals (within legal limits), organizations may not purchase or possess cannabis without a licence.

*If you’re in need of a Criminal Lawyer in Edmonton, click here.

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Cannabis is now legal in Canada! What’s still illegal? (Part III)

Things that are still criminal after the legalization of cannabis in Canada

As of October 17th, 2019, Bill C-45 (Also known as the Cannabis Act) came into effect, legalizing the recreation sale and use of cannabis products in Canada. Indeed, Canada is now the largest legal marketplace for cannabis in the world! That being said, there are still plenty of things surrounding cannabis use in Canada that are still illegal.

Continuing from our previous article, we explore several things related to cannabis that are still illegal in Canada:

Distribution of Cannabis to minors.

Careful who you pass that joint to! It is still illegal to provide cannabis products to those under the provincial/territorial age of majority (18 in Alberta and Quebec, 19 in all other provinces and territories. Note that this says ‘provide’ and not ‘sell’. If you’re of the minimum age of majority and share cannabis products with a younger friends, you could face criminal charges punishable by up to 14 years in prison! Minors found carrying less than 5 grams of dried cannabis will not be criminally charged, but will be subject to seizure of the cannabis, notification of their parents/guardians, and could face penalties similar to underage possession of alcohol or tobacco.

Driving with a blood THC content greater than 2ng/ml

You may have seen signs posted recently that read “drunk or, same rules apply” That’s because, much like restrictions on alcohol consumption while operating a vehicle in an effort to stop drunk driving, there are new laws specifically addressing blood THC content restrictions to curb those that might be driving while high. If you’re caught driving with a blood THC content greater than 2ng/ml, you could be charged with impaired driving – now considered a ‘serious criminal offense’ in Canada with the passing of Bill C-46. Click here to read more about these new laws regarding cannabis use and driving in one of our earlier series of articles.

*If you’re in need of a Criminal Lawyer in Edmonton, click here.

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Using cannabis and driving? Learn more about Bill C-46 (Part III)

Where there’s smoke there’s uncertainty: Details of Bill C-46

Today, as a continuation of our last article, we conclude our series on the legislation introduced by Bill C-46 with a discussion on the currently approved testing equipment.

The recently passed Bill C-46 amends laws in the Canadian Criminal Code pertaining to impaired driving offenses, in response to the upcoming legalization of Cannabis in a few weeks. The federal laws Bill C-46 amends will come into effect this December, but many lawyers have raised concerns that this overhaul of impaired driving laws may in fact be unconstitutional in that it opens up a real possibility of criminal charges being laid on sober drivers.

In this series of articles, we explored some of the issues Bill C-46 creates that you ought to be aware of.

Problems with actually measuring THC roadside.

Unlike testing for a driver’s blood alcohol content by using a breathalyzer roadside, driver’s blood THC levels will be measured with a saliva sample via a mouth swab. The most recent device for analyzing saliva samples that has been approved is the “Drager DrugTest 5000”. This equipment will be made available to local authorities all over the country, but local police forces will ultimately decide on what equipment they wish to use.

Although these saliva-screening devices have proven to be accurate and effective in the lab, they do have a fairly large problem when used roadside: they are likely to register false-positives when they get cold.

The optimal working temperature range for the Drager DrugTest 5000 is 4-40°C. While this isn’t a huge concern in more temperate parts of the country, this could prove to be an issue during our famously long and cold Canadian winters – especially in the prairie provinces and territories. This opens up the possibility that sober drivers who have never consumed cannabis products could face criminal charges if testing temperature conditions fall outside this range.

Furthermore, as we mentioned in our first article of this series, there is no scientifically agreed upon blood THC level to definitively indicate impairment. As such, these devices only quantify a certain metabolite produced by the body’s breakdown of THC to accurately estimate  blood THC levels – not actual impairment. In a statement released with the draft of the legislation Bill C-46 introduces, Ottawa indicated that the low level offense of having a THC blood concentration of 2-4ng/mL, was not created as a means to link a driver to impairment, but rather as a “precautionary or crime prevention approach”.

*If you’re looking for a criminal lawyer in Edmonton, click here.

*If you’ve been charged with a DUI and need a lawyer in Edmonton, click here.

The post Using cannabis and driving? Learn more about Bill C-46 (Part III) appeared first on Right Legal.

Using cannabis and driving? Learn more about Bill C-46 (Part II)

Where there’s smoke there’s uncertainty: Details of Bill C-46

In our last article, we started exploring certain issues with the recently passed Bill C-46, which makes amendments to laws in the Canadian Criminal Code pertaining to impaired driving offenses, in response to the upcoming legalization of Cannabis in a few weeks.

The federal laws Bill C-46 outlines will come into effect this December, but many lawyers are now raising concerns that its amendments may be unconstitutional. Furthermore, many are worried that Bill C-46 opens up the real possibility of criminal charges being laid on sober drivers.

In this series of articles, we explore issues Bill C-46 creates that you ought to be aware of.

Increased powers for police.

Beyond just addressing specific concerns regarding cannabis use and impaired driving, amendments within Bill C-46 provide a blanket increase to police powers. As the law currently stands, police may stop any driver to ensure they are sober. If police have ‘reasonable suspicion’ that a driver is impaired, they may demand a driver submit to a roadside breathalyzer test to determine approximate blood alcohol content. The standard for ‘reasonable suspicion’ is fairly low and may be met with any of the following:

• Erratic or unsafe driving
• Open alcohol containers within the vehicle
• Detection of the odour of alcohol on a driver’s breath
• Bloodshot eyes
• Slurring of speech and other altered behaviors
• A driver’s admission to drinking alcohol

These indications are fairly easy to spot – even by a lay-person, let alone a trained and experienced police officer. Bill C-46 expands these police powers in that ‘reasonable suspicion’ is no longer required. As of December 18th, 2018, police officers across Canada will be able to stop any driver and demand they submit to roadside testing for impairment.

Lawyers are now questioning the implications of this increase in unrestricted police power. Many argue that the current ‘reasonable suspicion’ standard is flexible and effective. Allowing police to demand samples from anyone without any cause for suspicion opens doors for discrimination (such as racial profiling).

Furthermore, protection from ‘unreasonable search and seizure’ is outlined in the Canadian Charter of Rights and Freedoms. As such, some are now arguing that the amendments in Bill C-46 that remove this ‘reasonable suspicion’ standard (effectively granting police powers to compel a sample from anyone for no reason whatsoever) are outright unconstitutional. In essence, Bill C-46 removes the right to refuse to comply to a police demand that a person produce a sample of either their breath or saliva. Frustrated or rushed sober drivers ignorant of this could, as a result, face criminal charges.

*If you’re looking for a criminal lawyer in Edmonton, click here.

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Using cannabis and driving? Learn more about Bill C-46 (Part I)

Where there’s smoke there’s uncertainty: Details of Bill C-46

Though we’re often told that ignorance of the law is no excuse for breaking it, Canadians might be excused (from at least a practical standpoint, if not a legal one) for not fully understanding Bill C-46, and unknowingly suffer the risk of facing criminal charges.

*If you’re facing a DUI charge and need a lawyer in Edmonton, Click here.

Bill C-46 was given Royal Assent on Jun 21st, 2018 and its comprehensive revision of the Criminal Code for impaired driving offenses in response to the upcoming legalization of Cannabis in a few weeks. The federal laws Bill C-46 outlines will come into effect this December, but many lawyers have concerns that this overhaul of impaired driving laws may in fact be unconstitutional in that it may result in criminal charges being laid on sober drivers.

In this series of articles, we explore issues Bill C-46 creates that you ought to be aware of.

Blood THC levels above 2ng/mL will become criminal for drivers.

Bill C-46 restricts the permissible amount of THC (the main psychoactive compound in cannabis) drivers may have in their system (much like the current laws regarding blood alcohol level limits). Come December, drivers caught with a THC level between 2 and 4 nanograms (ng) /millilitre (mL) of blood will face a summary conviction and a fine of up to $1,000. Drivers found with a blood THC level of 5ng/mL or more face a hybrid offense (a summary conviction and indictable criminal offence) and, depending on the severity, jail time of up to 10 years in addition to a heftier fine.

There is a problem with this 2ng/mL cut-off, however, in that it’s not really backed by science. Some toxicologists and pharmacologists have indicated that THC levels can, in some cases, have little impact on a person’s driving ability: Unlike alcohol, which is processed in a reliable, time-dependent fashion from the body without being retained, THC is a fat-soluble compound that can remain stored in a person’s fat cells for a significant period of time without resulting in impairment. As such, THC can be released into the bloodstream long after consuming cannabis – especially during periods of fasting or weight-loss.

This makes making guidelines difficult for how long you should wait after consuming cannabis before driving, from either a legal or a practical impairment standpoint. It depends on the concentration and amount of cannabis used (there is currently no metric of what a ‘dose’ is like there is for alcohol), how often you consume it, as well as your individual physiology and genetics. As a result, not even experts could precisely tell you when you’re legal to drive after use, especially if you’re a regular user. Indeed, a study has shown that for up to seven days following using marijuana, two nanograms of THC can remain in a person’s blood.

The consequences of this wide variation and uncertainty means Bill C-46 has created instances where functionally sober cannabis users may be subject to criminal charges.

*Read more about how a DUI charge can affect your life.

The post Using cannabis and driving? Learn more about Bill C-46 (Part I) appeared first on Right Legal.

Legal Oddities (Part II): Funny weird laws still on the books in Alberta.

Think you’re not breaking the law? Think again!

In our last post, we outlined some of the quirky laws in the Canadian Criminal Code. In this second installment, we’ll explore some strange laws still in effect in Alberta.

Provincial Laws

In the province of Alberta, it is illegal to:

Keep a rat as a pet.

Since 1950, Alberta has designated the Norway Rat to be “one of the most destructive creatures known to man” and has designated them to be a pest. As such Alberta is the largest rat-free area in the world.

Paint a wooden ladder.

According to the 2013 Occupational Health and Safety Code, it is not lawful to paint a portable wooden ladder, so that users may easily determine their condition and safety. They can however be covered in a “transparent protective coating that won’t conceal any defects.” Let it never be said that Alberta’s ladder laws aren’t transparent!

Municipal Laws

In the city of Calgary, it is not legal to:

Throw snowballs without a permit.

An old bylaw in Calgary makes it illegal for anyone to throw snowballs within city limits without express consent from the mayor or city council.

Place your feet on a public bench.

According to bylaw 54M2006, it is not lawful for a person to “stand or put his feet on the top or surface of any table, bench, planter or sculpture placed in any public place”. Mind where you tie your shoelaces in Calgary!

In the city of Edmonton, it’s illegal to:

Smell bad.

In case there was any confusion regarding the federal law on public odors we mentioned in our last post, the city of Edmonton took things a step further by with the Community Standards Bylaw which bans the “production of any generally offensive odours” not just in public, but in general use of land. Apparently we Canadians (especially Edmontonians) take hygiene very seriously!

*If you’ve been charged with malodorous intent, click here to speak with a criminal lawyer.

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Legal Oddities (Part I): Funny weird laws still on the books in Canada

Think you’re not breaking the law? Think again!

We often think of the law as something born from logic – on the books to serve some end. While this is true for most laws, there are some that seem devoid of reason. This often a result of not aging well: while they may have made sense when they were originally passed, they lack relevance in the modern era. The following are some strange laws that many Canadians likely don’t know they’re breaking.

In Canada, it is illegal to:

Pretend to practice witchcraft

Harry Potter fans beware! According to the Canadian Criminal Code, it is illegal to pretend to perform any kind of “witchcraft, sorcery, enchantment or conjuration”. Note that it’s perfectly legal to perform magic legitimately – just be prepared to prove it!

Watch, or participate in immoral theatrical performances.

This restriction falls under Canada’s anti-obscenity laws. If you think this one hasn’t been used recently, think again. In 2005, a strip-club was fined $7,500 not for nudity, but for the use of sex toys during a performance.

Offend a public place with a bad smell.

Though aimed at preventing the use of stink-bombs and the like in public places, the wording of this law prohibits any “offensive volatile substance” (smell) that causes “discomfort” in public places. Pass gas at your own peril in Canada!

Distribute comic books depicting characters performing illegal acts.

A leftover of the moral panic of the 1950s, under the section of the Canadian Criminal Code outlining “Offenses tending to Corrupt Morals”, it is illegal to distribute “crime comics”, defined as being any publication that “substantially comprises matter depicting pictorially […] the commission of crimes, real or fictitious”. Technically, this means that Batman comics are contraband.

Advertise Erectile Dysfunction Drugs

This is another one of those “Offenses tending to Corrupt Morals”. Originally aimed at stopping fraudsters from selling fake remedies for virility, the law does not consider remedies that are actually proven to work. Sorry Viagra!

*If you’re looking for a criminal lawyer in Edmonton, click here.

*For more information on Canadian laws that actually make sense, click here to read about new impaired driving laws.

 

 

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Need an employment lawyer? Learn more about unjust dismissal claims.

What are the different types of unjust dismissal?

If you’ve lost your job and think you’ve been treated unfairly, you may want to engage an employment lawyer and inquire about an unjust dismissal claim. An unjust dismissal claim is one where you challenge an employer’s decision to terminate your employment as being unlawful (either by violating terms of the original employment contract, or by a violation of legal code governing employment standards) and demand fair compensation. Although such claims are often settled out of court, litigation is sometimes required. In either case, a lawyer specializing in employment law can be invaluable in outlining your options and the best strategy for getting fair compensation.

*If you’re looking for a lawyer specializing in employment law, click here.

Wrongful dismissal claims can be broadly categorized into three types – unfair, wrongful and constructive.

Unfair Dismissal

An unfair dismissal is one where an employee is unjustly dismissed:

• without fair reason, and an employer refuses to pay fair compensation (fair reasons include prolonged absence, misconduct (such as theft), or unsatisfactory performance),
• without fair procedure (such as an unfair evaluation of an appropriate reason to dismiss), or
• for an unfair reason (such as unlawful discrimination based on, sex, gender, religion, ethnicity or sexuality to name a few. Click here to learn more about the Canadian Human Rights Act).

 

Wrongful Dismissal

Wrongful dismissals occur when an employee’s dismissal breaches the terms outlined in their employment contract, such as failing to provide the correct notice period prior to dismissal without compensation (the pay that would have been earned had the dismissal notice period been properly observed.

Constructive Dismissal

Constructive dismissals occur when an employee is forced to resign due to a gross breach of their employment contract by their employer (such as via bullying, failing to pay, creating an intolerable work environment (e.g. dangerous conditions), or unreasonably changing the original conditions of employment (e.g. unreasonable hours or location).

Learn more about unjust dismissal laws in Canada.

*For more information on employment law, see our article here.

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Legal Business Ownership Structures. Which one should I choose? (Part II)

What are the pros and cons of Canadian business ownership structures? (Part II)

Last week, we posted an article outlining the benefits and drawbacks of two of the four business ownership structures: sole-proprietorship and partnerships. This week, we’ll be exploring the remaining two Canadian business ownership structures: corporations and cooperatives.

*If you’re looking for a lawyer specializing in business law in Edmonton, click here.

Corporations

When a business decides to become a corporation (incorporate), it becomes a legal entity that is separate from its shareholders/owners. This legal curiosity is known as ‘Corporate Personhood‘, where the corporation has some legal rights and responsibilities enjoyed by real persons, such as the right to enter into contracts, be held legally liable for actions or pursue legal actions, etc. Unlike unincorporated associations of persons, shareholders and owners of a corporation do not share in its legal liability. As such, shareholders and owners are not personally liable for any debts or acts of the corporation.

Incorporation in Canada can be done on the federal or provincial level, each having its own unique requirements. As such, Corporate law is tricky and it is strongly advised that you get advice from a lawyer specializing in corporate law before you consider incorporating your business.

*If you’re considering incorporating your business, see this post here.

Pros:

• Separate legal entity from shareholders/owners
• Limited liability
• Set up to make ownership transfer simple
• Raising capital is often easier than with other business ownership structures
• Often are taxed less that unincorporated businesses

Cons:

• Corporations are strictly regulated
• It’s more expensive to set up a corporation than other business ownership structures
• Extensive corporate record keeping is required by law and must be filed each year with government agencies
• Depending on level of incorporation (federal or provincial), directors of the corporation may be subject to residency and/or citizenship requirements
•  Conflicts between shareholders and directors of the corporation can arise.

Learn more about new laws affecting Canadian corporations.

Cooperatives

The least common of the four Canadian business ownership structures is the cooperative. The cooperative is essentially special kind of corporation, where a group of people and/or businesses come together and pool resources to provide access to common social, cultural and/or economic needs. Though often set up as being not-for-profit, cooperatives can be for-profit organizations.

Pros:

• Owned and controlled by its members in a democratic fashion (each member is accorded a vote).
• Limited liability
• Clear profit distribution

Cons:

• Like corporations, cooperatives are required by law to keep extensive records.
• Raising capital can be more difficult than under other business structures, as there can be less incentive to invest further after the initial cooperative is set up.
• Can take longer to make business decisions, as participation of all members is required.
• Conflicts between members can stall business proceedings.

Additional Resources

• For more information on Canadian corporate business structures, click here.
• For more information on the cooperative business structure in Canada, click here.
• For more information on corporate law, see our article here.
• If you’d like to speak with an Edmonton-based corporate lawyer click here.

The post Legal Business Ownership Structures. Which one should I choose? (Part II) appeared first on Right Legal.

Legal Business Ownership Structures. Which one should I choose? (Part I)

What are the pros and cons of Canadian business ownership structures?

Earlier this week, we posted an article outlining certain commercial situations that a business lawyer can help with. In this article, we get into a bit more detail on the pros and cons of the first two common Canadian business ownership structures that a lawyer can help you with.

*If you’re looking for a lawyer specializing in business law in Edmonton, click here.

Sole proprietorship

As its name suggests, businesses under this legal structure are headed by a single owner. As such, the owner of a sole proprietorship business is alone in their responsibility for all debts and obligations related to their business, but also keep all profits. However, because owners under this structure are personally liable, a creditor can make a claim against not only business assets, but also an owner’s personal assets outside of their business, in order to pay off any debts.

Pros:

• Owner keeps all profits.
• Process for registration is simple and relatively inexpensive.
• Start-ups require comparatively little working capital
• Typically fewer legal regulations apply
• Owner has direct control of decision making
• Some tax advantages for struggling businesses

Cons:

• Unlimited liability (claims can be made against your personal assets to pay off creditors)
• Income is taxable at the owner’s personal income tax rate. As such, if a business is profitable, this can result in the owner being placed in a higher tax bracket.
• Owner is required to be personally involved in all major dealings related to the business.
• Available capital is limited to what an owner can raise on their own.

*For more information on the sole proprietorship business structure, click here.

Partnership

Just as it sounds, a partnership is business that is created between two or more people, but is not incorporated. In a partnership, business partners pool financial resources to put into a business and then share profits according to a legal agreement that establishes the terms of the partnership. There are three varieties of partnership business structures:

1. General Partnership – In this business structure, all owners of the business share liability, often in proportion to the amount of the business they own: They are jointly responsible for satisfying any debts their business accrues.
2. Limited Partnership – In this business structure, not all of the owners are involved in the business’ operations. Some owners may buy into or contribute to the businesses solely to share in the profits, but have no power over decisions made.
3. Limited Liability Partnership (LLP) – This is a special kind of partnership business structure that is usually limited to groups of professionals such as lawyers, doctors, engineers or accountants. In an LLP, some or all of the owners/partners have limited liabilities, which means that they are not liable for any other partner’s misconduct or negligence. As such, legal action against one partner does not impact the others.

 

Regardless of the variety of partnership, they all share common benefits and drawbacks:

Pros:

• Process for registration is simple and relatively inexpensive.
• Costs, management, profits and assets are all shared between owners
• Some personal income tax tax advantages for owners of struggling partnership businesses.

Cons:

• Good business partners can be hard to find! Owners are financially responsible for business decisions made by partners (E.g. Broken contracts).
• Unlimited liability (owners’ personal assets can be used to pay off business debts)

*For more information on the partnership business structure, click here.

Next week, we’ll explore the remaining two business ownership structures: Corporation and Co-operative.

The post Legal Business Ownership Structures. Which one should I choose? (Part I) appeared first on Right Legal.

Interested in purchasing a Condo? Be aware of these legal pitfalls.

What lawyers look for when reviewing condo documents.

Though the general rule of “buyer beware”, applies to most property acquisition, it’s particularly important when considering real-estate purchases given the scale in their value. This is further complicated with buying a condo, as you’re actually buying into a condo corporation (essentially becoming a shareholder in a company), rather than acquiring physical land.

The overall well-being of a condo can’t be entirely determined by conventional means, such as doing a walk-through to gauge the overall condition of the building or the unit for sale – you have to dig deeper. The condominium documents allow you to look into the financial state of the condo corporation as well as the effectiveness of the condo board. These documents are usually numerous and can be difficult to interpret, so it’s vital that you get them reviewed professionally by a real-estate lawyer, so that you can make an informed choice in your purchasing decision. The following are a few examples of what real-estate lawyers are trained to look for when reviewing the documents of a condo corporation:

Board meeting minutes content and continuity

Real-estate lawyers carefully review all the records of the condo board meetings, not only analyzing their content, but also looking for gaps in the minutes. The minutes should be complete, with no gaps. If gaps are present, then there may be vital information missing relevant to your choice to buy or not.

Reserve fund health

A condo corporation is required by law to have an properly maintain a reserve fund to cover the costs of anticipated maintenance, repairs or replacement of the property of the corporation. As such, gauging the health of the reserve fund requires looking beyond the actual amount in the the bank and looking at the reserve fund study, which is required to be completed every 5 years. Your lawyer will be able to weigh the cost of current and projected upcoming expenses with the amounts currently in and expected to be in the reserve fund from monthly condo fees. If there is a discrepancy in these values, your lawyer will be able to advise you on the likelihood, timing and magnitude of a future special assessment.

Lawsuits

No one would think of buying into being the target of a lawsuit, but failure to properly review condo documents can result in just that! If you buy into a condo corporation that is being sued, you become, in part, a target of that lawsuit as a legal shareholder. Your real-estate lawyer will be able to inform you of any legal actions currently in process or being proposed against the condo corporation, as well as an estimate of the legal costs and outcomes of these actions. Legal costs come out of the reserve fund, as do any damages ordered to be paid by the condo corporation. A successful lawsuit against the condo corporation can mean costly special assessments for shareholders.

Learn more about condo law in Edmonton.

If you fail to properly review condo documents before making a purchase, you may be left with no course of action against the seller. That’s why it’s vital to have them professionally reviewed by a real-estate lawyer.

*If you’re interested in buying a condo, click here to read about a recent change in the Condominium Property Act.

*If you’re looking for a real-estate lawyer in Edmonton, click here.

 

The post Interested in purchasing a Condo? Be aware of these legal pitfalls. appeared first on Right Legal.

What kind of lawyer do I need? What a business lawyer can do for you.

What can a business lawyer help with?

With so many different areas of law, sometimes it can be challenging to figure out what kind of lawyer you need. In this article, we briefly explore what a business lawyer can do for you. Though business law is a very large section of law and branches into numerous specialties, broadly speaking, business lawyers can be divided into two groups: Small-business lawyers, who specialize in the legal counsel most often required in the early stages of a new business, and corporate lawyers, who more often focus on the the structure and financial status of larger, established businesses, while also providing legal support for daily business dealings.

Learn more about important business laws in Alberta.

Regardless of the size of your business, the following are just a few of the common kinds problems a business lawyer can help you with:

Choosing or converting your business’ ownership structure.

A business lawyer can help you select the most advantageous ownership structure for your business. In Canada, this means choosing between sole proprietorship,  partnership, a corporation, or a co-operative. Each business structure has different benefits and constraints regarding raising capital, tax benefits, control and legal liability.

Writing contracts

Legal formal agreements (known as contracts) are a vital part of any business. A business lawyer can advise you on what legal forms you’ll need as well as help you draft these contracts to meet the exact needs of your business. Here are just a few examples of the kinds of contracts a business lawyer can help you with:

• Licensing agreements
• Franchise agreements
• Employment contracts
• Partnership, incorporation or shareholder agreements
• Lease agreements
• Mortgage, purchase agreements
• Confidentiality agreements
• Non-Competition agreements
• Sales contracts

For more information on contract law in Canada, click here.

Contractual disputes or breaches.

What happens when a contract is breached, such as when a client fails to pay for services or an employee breaches confidentiality? A business lawyer can advise you on your response and negotiate with relevant parties on your behalf.

Compliance and risk management.

Every action a business takes involves a certain amount of uncertainty or risk. As a business in Canada, you are obligated to take certain measures against corruption, fraud, ethical violations, or money laundering from occurring within your business dealings. A business lawyer can help you identify and mitigate risks as well as advise you on your legal risk management obligations.

Resolving employee issues and claims.

Even the most prepared and conscientious business owners occasionally run into problems regarding employee management such as issues surrounding disability, sick-leave, workplace safety or discrimination to name a few. A business lawyer can advise you on relevant laws, best courses of action and represent you when a problem arises.

Company mergers and acquisitions.

Whether you’re looking to join forces with another business, buying out a competitor, or are in the process of being acquired by a larger company, a business lawyer is an invaluable asset during such negotiations, as they provide vital legal advice while guiding you through the process.

*If you’re looking for a lawyer specializing in business law in Edmonton, click here.

The post What kind of lawyer do I need? What a business lawyer can do for you. appeared first on Right Legal.

At what age should you make a will? Know when to start estate planning.

When should you start estate planning?

Having a legal will is often seen as being a function of age, but this really couldn’t be much further from the truth: In reality, no age is too young to have a legal will, but there are certain life events/conditions that prompt the need to create or update your legal will:

If you possess significant assets, such as a home.

Having significant assets is a strong indication that you need a will. If you’re like most Canadians, your largest asset is housing. If you are already a home owner or hold a mortgage (see Edmonton real estate lawyers) you should definitely consider updating or creating a legal will.

If you have recently moved moved.

If you already have a will but have moved between provinces or out of country, you will need to update it as different provinces and countries have their own unique set of laws regarding estate law.

If you own shares in a business.

If you own shares in a private business, you can avoid estate administration taxes (known as probate) in many provinces by making a secondary or cooperate will. While the amount for probate in Alberta is capped at a maximum of $525, in other provinces, such as British Columbia, probate fees have no upper limit and are charged as a percent value of the estate (in British Columbia, this often works out to be ~1.4%).

Depending on the size of your estate, this can represent a sizeable portion of your assets not going to your beneficiaries. Furthermore, probate fees can also be avoided by placing assets in legal trusts, as directed by your will, which are not subject to probate fees. It’s also important to note that, while you may live in one jurisdiction, your assets (such as the location or setup of a private company) may be subject to the laws of a different jurisdiction. If this is the case, it is vital to have a lawyer properly format your will to comply with the legal requirements of both jurisdictions.

If you are getting married, divorced, or remarried.

Changes in your matrimonial status often mean significant changes in personal relationships, and thus, your choice of likely beneficiaries in your will. Furthermore, it’s important to know that wills created before a change in matrimonial status are rendered null and void unless otherwise specified in the will. For legal advice see our Edmonton divorce lawyers page.

If you have children.

Having an updated will ensures that you can properly provide for your children in the event of your death. This is especially true for children under the age of majority, as your will specifies their legal guardians in the event of the death of both parents. Once your children reach the age of majority, you may wish to update your will to include their spouse(s) and/or children. Furthermore, as you and your children age, you may want to grant them more responsibility regarding your estate and name them as executors.

If you anticipate changes in your health.

Legal wills allow you to assign power of attorney in the case you become incapacitated or otherwise incapable of managing your own affairs. This is a decision that should not be taken lightly as your appointee will make decisions regarding not only your property but also your personal care on your behalf.

If it’s been more than 5 years since you last updated your will.

It’s recommended that you update your will every 5 years to reflect the changes the events above describe, though other events such as the death of beneficiaries, changes in law, or changes in marital status within your family to name a few, often necessitate the updating of your will.

*For lawyers specializing in wills and estates in Edmonton click here.

Given the profound nature a will can have on the lives of your loved ones after your passing, it’s surprising to note that majority of Canadians don’t have a legal will. Although the topic of estate planning is often seen as grim or morbid, many find that once they’ve completed their legal will they experience a peace of mind knowing that their estate will be divided amongst their loved ones according to their wishes.

The post At what age should you make a will? Know when to start estate planning. appeared first on Right Legal.

Important things to consider before starting a small business in Alberta.

Small businesses play an important role in Alberta’s business landscape. They represent an overwhelming majority of businesses in the province. They fit into a variety of domains and niches and can be found in almost every corner of the province. In many ways, they fuel Alberta’s growth and development. It is quite evident that the larger multinational companies rely heavily on small businesses for countless goods and services. Alberta is considered to be one of the best provinces in Canada to establish a small business. Compared to a national average of 12.1 percentage, Alberta’s growth in terms of small businesses is higher at 19 percent.  – Alberta Small Business Profile.

However, most of the small business owners are tied into some legal obligations. Below are few important things to consider if you a are a small business owner:

Choice of Ownership:

Choosing the right ownership is one of the first and most important steps for your business incorporation. Your type of business may have direct or indirect implications for various liabilities, risks, patents, taxations, etc. Three generally used types of business structures are – sole proprietorship, partnership, and corporation. It is, therefore, important to understand each one of these from your business perspectives. In cases of uncertainty, one must consider getting help from a business lawyer.

Our Business Lawyers at Right Legal can help you with any advice related to your company’s structure.

 

Intellectual Property Issues

You must consult an IP expect to make sure your business qualifies for it. Most of the times, small business owners ignore the importance of maintaining an Intellectual Property, but in long-term it may turn out to be a valuable asset.

 

Taxation and Compliance 

Handling tax liabilities can be challenging, especially if you are a first-time business owner. You may end up spending a lot of time if you are not familiar with the existing tax laws or any recent changes. Also, there may be ways to balance the tax liabilities if you can get help from a right lawyer. One of the key advantages of assigning the tax-related issues to a lawyer is, you can relax and focus on your operations, without the fear of failing to comply with the tax rules.

 

Employment Terms

As an employer, you must be aware of Alberta’s employment laws relating to wages, employee standards and hours of operations. The details of employment laws in Alberta can be found here.

Before hiring an employee, you must ensure that you have legally binding documents related to an employment contract, which can be referred to in cases of conflict.

 

You can read more about major legal issues faced by small business.

 

 

 

 

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Real Estate Lawyers in Edmonton

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Medical Malpractice Lawyers in Edmonton

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Tax Lawyers in Edmonton

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Mediation Professionals in Edmonton

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Injury Lawyers in Edmonton

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Immigration Lawyers in Edmonton

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