An individual and his spouse, who had been married under the separation of property regime, stopped living together. The following year, they entered into an agreement relating to ancillary matters under which the spouse undertook to transfer to the individual her 50 common shares of their jointly-owned corporation. In the same year, that agreement was ratified and became enforceable by the divorce order, and the shares were transferred as agreed. In finding that s. 73(1.01)(b) could apply, CRA stated:
Paragraph 73(1.01)(b) addresses, inter alia, the transfer of a property by an individual to the individual’s former spouse in settlement of rights arising out of their marriage. We are of the view that the term "in settlement of rights arising out of their marriage" is sufficiently broad in scope to include the rights created by an ancillary agreement entered into in a divorce context as is the case in the situation you described.