The parties separated after 12 years of marriage.
At trial, family assets were divided equally, and the trial judge ordered that the husband's contingent tax liabilities associated with his tax shelters should be shared equally by the spouses on an 'if and when' basis.
The Court of Appeal set aside this order, holding that the Family Relations Act precluded a freestanding order apportioning debt.
The Supreme Court of Canada allowed the appeal, holding that the Act does not preclude an order dividing a contingent liability that cannot be valued at the time of trial, and that fairness required both spouses to assume responsibility for the contingent liabilities associated with tax shelters from which they both benefited.