PDF version: Tracing Original Property to Replacement Property: What Evidence is Required?
Case considered: Scheffelmeier v. Krassman, 2011 ABCA 64
In Scheffelmeier v. Krassman the Alberta Court of Appeal once again dealt with tracing exempt property under the Matrimonial Property Act, R.S.A. 2000, c. M-8 (MPA). Tracing is one of the more contentious matters in matrimonial property litigation, as is the matter of non-disclosure of financial information, also a factor in this case. Scheffelmeier is of interest because it includes a dissenting opinion on the application of the long-standing principle that “[t]racing can be inferred, implied, or presumed” (Harrower v. Harrower (1989), 97 A.R. 141; 21 R.F.L. (3d) 369 at 376 (C.A.)). The point of contention between the majority opinion of Mr. Justice Ronald L. Berger and Madam Justice Patricia Rowbotham and the dissenting opinion of Mr. Justice J.D. Bruce McDonald also illustrates the problem caused by the lack of enforcement mechanisms for the disclosure requirements in the MPA.