Does the erosion of a company's value constitute family debt?
British Columbia, Canada
The following excerpt is from Sharifpour v Rostami, 2018 BCSC 681 (CanLII):
The person alleging a family debt has the burden of proving its existence, and that it arose during the relationship or to preserve family property. Amounts owed that solely represent a corporate obligation, or which are no longer legally enforceable, do not constitute family debt. The erosion of a company’s value by a single spouse is not fairly placed on the other spouse, and does not constitute family debt: Chatha v. Uppal, 2018 BCSC 6.
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