What is the impact of traditional trust principles against the principles of equity underpinning fair sharing of wealth during a marriage?

This collision between trust law and family law involves consideration of traditional trust principles against the principles of equity underpinning the fair sharing of wealth accumulated during a marriage. On the one hand, I consider that a trust is fundamentally a relationship characterized by separation. As Gillese J.A. explained in Spencer v. Riesberry [2012] ONCA 418 at para 53: A trust is a form of property holding. It is not a legal entity or person. A trust does not hold title to property nor can it. It is the trustee who holds legal title to the trust property. A trust is also a type of relationship, namely, the fiduciary relationship that exists between trustee and beneficiary. The foundation of the trust relationship is the separation of roles between the trustee and beneficiary with the trustee being the legal owner of the trust property and the beneficiary being the equitable owner of the trust property. The trustee holds legal title to the trust property so that it can manage, invest and dispose of the trust property solely for the benefit of the beneficiaries. A trust can only exist when there is a separation between legal ownership in the trustee and equitable ownership in the beneficiaries. If the court were to ignore or conflate the separate entities, it would destroy the foundation of the trust relationship. Put another way, absent the separate entities, there is no trust relationship and, therefore, no trust.

On the other hand, while he was admittedly speaking in a different context, I note how Cory J. generally characterized the purpose and scope of the Family Law Act division of property regime in Rawluk v. Rawluk 1990 CanLII 152 (SCC), [1990] S.C.J. No.4, 23 R.F.L. (3rd) 337 (S.C.C.) at 54: A marital relationship is founded on love and trust. It brings together two people who strive and sacrifice to attain common goals for the benefit of both partners. When it is terminated and acquired assets are to be divided, then in this of all relationships the concept of fairness should predominate in making decisions as to ownership.