In a family law proceeding following the sale of the matrimonial home, the respondent husband sought an interim advance from the net sale proceeds held in trust to satisfy outstanding tax liabilities owed to the Canada Revenue Agency.
The motion was effectively for an advance on equalization.
The court reviewed the principles governing such relief, including the factors identified in Zagdanski v. Zagdanski and subsequent jurisprudence, requiring certainty that the advance would not exceed the eventual equalization entitlement and a demonstrated need for the funds.
Given conflicting evidence regarding the parties’ net family property calculations, disputes over the appropriate valuation date, and the existence of significant RRSP assets available to the moving party, the court found insufficient certainty and necessity to justify an advance.
The motion for payment from the trust funds was therefore dismissed.
