18 September 89 T.I. (February 1990 Access Letter, ¶1107)

Because a voluntary partition under Quebec law is not translatory but rather declaratory of title, such partition does not give rise to disposition. Furthermore, property acquired by a co-owner in the course of a licitation is presumed under Quebec law to have always been owned by him and, accordingly, the licitation also does not entail a disposition. However, if the property to be partitioned consists of two distinct masses, and one co-owner receives property for one mass in exchange for his interest in another mass, there will be a disposition.

Proceeds of disposition received from a partition or a licitation do not fall within ss.13(21)(d)(iv) or 54(h)(iv) because (under Quebec law) in a partition or a licitation a transfer of property will only happen if there is an agreement as to the compensation, or if the acquiring party outbids everyone including the owner.