The appellant and respondent entered into a co-habitation agreement acknowledging the appellant's $61,000 net equity in their home.
After separation, the appellant obtained a consent judgment for the amount.
The respondent subsequently made an assignment in bankruptcy and was discharged.
The appellant appealed the discharge, arguing for the first time that the $61,000 was a contingent obligation for future spousal support that should survive bankruptcy under s. 178 of the Bankruptcy and Insolvency Act.
The Superior Court dismissed the appeal, finding the claim was a transparent attempt to shelter the debt from bankruptcy.
The Court of Appeal upheld the decision, confirming the agreement clearly related to the appellant's net equity in the matrimonial home.