Can a Family Law Action Stay a Civil Claim in Alberta?

Following separation, disputes concerning the division of family property can become complicated when one spouse is also facing a civil claim for an outstanding debt.

For example, a creditor may commence a civil action against one spouse seeking repayment of a debt associated with the family home, while the spouses have yet to determine their respective interests in that property or responsibility for the debt.

This raises an important question: Can a family law proceeding prevent a related civil action from moving forward?

Division of Family Property and Debt

Under Alberta's Family Property Act, the division of family property involves more than determining who owns particular assets. The Court must also consider the debts and liabilities associated with those assets.

In Kretschmer v Terrigno, 2012 ABCA 345, the Alberta Court of Appeal confirmed that the division of matrimonial property requires consideration of the parties' net assets, including debts incurred before, during, and after the marriage.

More recently, in Offrey v Offrey, 2026 ABKB 335, the Court reaffirmed that determining the net value of family property requires identifying family assets, subtracting applicable debts, and determining the amount available for distribution.

Accordingly, a debt incurred by one spouse may be relevant to the division of family property, particularly where the debt relates to the family home.

Can the Civil Action Be Stayed?

In certain circumstances, yes.

Rule 3.72 of the Alberta Rules of Court permits the Court to stay one action until another action has been determined.

This may be appropriate where two proceedings involve overlapping questions of law or fact, or arise from the same transactions or circumstances.

For example, where a civil claim concerns a debt associated with the family home, and a family property action will address the parties' respective interests and responsibility for that debt, there may be grounds to request that the civil action be stayed.

However, commencing a family action does not automatically stay an existing civil claim. The Court must be satisfied that a stay is appropriate, having regard to the relationship between the proceedings and the potential prejudice to the parties.

The available procedure will also depend on whether the civil action was commenced in the Alberta Court of Justice or the Court of King's Bench.

What Does This Mean Following Separation?

Where a civil claim involves debts connected to family property, it is important to consider how that claim may affect the broader division of assets and liabilities.

Although a family property proceeding does not eliminate a creditor's independent legal rights, there may be circumstances in which coordinating the proceedings, or seeking a stay, is appropriate.

Ultimately, “the objective is to ensure that related legal proceedings are addressed fairly and efficiently, while avoiding unnecessary duplication or potentially inconsistent findings.”