NEW CLIENT - CLICK HERE TO START

Treaty Agricultural Benefits Settlements (“Cows and Plows”) and its Impact on Family Law in Saskatchewan

Cows and Plows

When relationships end, the division of assets and calculation of support can become complicated—especially when one partner has received a lump sum payment from their First Nation band. A specific type of settlement that raises important questions in family law is the Treaty Agricultural Benefits Settlement, commonly known as “Cows and Plows.”

What Is the Treaty Agricultural Benefits Settlement?

The “Cows and Plows”, a more common colloquial term, is a settlement arising from the Treaties between First Nations and the Federal Government. The Treaties promised agricultural assistance, including livestock, equipment, and support for farming. In many cases, these promises were never fulfilled. In response, First Nations have negotiated compensation. Many First Nation communities have distributed the settlement in the form of lump sum payment, to individual members. The financial and legal treatment of these payments may become relevant in separation or divorce proceedings.

How Does "Cows and Plows" Affect Family Property Division?

Under Saskatchewan’s Family Property Act (FPA), assets acquired during a relationship are generally considered family property and subject to equal division upon separation. However, there are important exceptions that may apply to Treaty Agricultural Benefits Settlements.

  1. Exempt Property

According to Section 23 of the FPA, certain assets are exempt from division, including:

  • Gifts or inheritances received during the relationship, if kept separate.
  • Settlements for personal injury or loss.
  • Treaty settlement payments that qualify as individual entitlements under the terms of a specific settlement agreement may be excluded.

If the “Cows and Plows” payment maintains its character as a personal, treaty-based entitlement and is kept separate from family finances, it may be exempt from division.

2. Loss of Exemption through Use

Even if a payment is initially exempt, it can lose that status if it is intermingled with family assets. Examples include:

  • Depositing the funds in a joint account
  • Using the payment for shared expenses like mortgage payments or renovations
  • Contributing to a joint investment or family-owned business

In these cases, the funds may become family property and subject to division.

3. On-Reserve Protections

The Indian Act, specifically Section 89, protects personal property situated on reserve lands from seizure or division under provincial laws. If the “Cows and Plows” payment remains on-reserve, this protection may prevent its division. However, if the funds are transferred off-

reserve, such as to a off-reserve bank account, they may fall under provincial jurisdiction and the FPA could apply.

Impact on Child and Spousal Support

Even if exempt from division, “Cows and Plows” payments may still influence support obligations.

1. Child Support

Under the Federal Child Support Guidelines, support is based on the payor’s annual income. A lump sum payment:

  • May be included as income if it reflects a gain or benefit that improves the individual’s financial circumstances.
  • Could be spread over multiple years for income averaging purposes.
  • Might be excluded if it’s non-recurring and not representative of typical earnings.

Courts will assess whether the lump sum improves a person’s ability to pay. In past cases involving similar claims (e.g., Specific Claims settlements), courts have considered the payment relevant when assessing arrears or undue hardship—even if it was not formally included in Guideline income.

2. Spousal Support

Spousal support depends on both need and ability to pay. A significant lump sum may demonstrate enhanced ability to pay or reduce a recipient’s claim of financial hardship. Courts may factor in the lump sum when making or varying support orders, even if the funds are not technically considered income under tax law or the Guidelines.

Support Enforcement and Seizure of Funds

Under The Enforcement of Maintenance Orders Act, 1997, Section 34 permits seizure of various payments, including pensions and benefits authorized under any program or statute, to enforce support obligations.

If “Cows and Plows” funds are:

  • Held off-reserve
  • Deposited into a bank account
  • Used for personal gain or expenses

they may be subject to garnishment or seizure by Maintenance Enforcement.

Key Takeaways

✔ May Be Exempt from Property Division: If the funds are a personal, treaty-based entitlement and kept separate/on-reserve.

✔ May Become Divisible: If the funds are used for shared expenses or placed in joint accounts.

✔ Relevant for Support: The lump sum may increase the ability to pay child or spousal support.

✔ Subject to Enforcement: Off-reserve funds may be garnished to satisfy maintenance obligations.

What Should You Do?

If you or your former partner received a “Cows and Plows” payment:

  • Document how the funds were received and used
  • Consult with a family lawyer
  • Be prepared to disclose settlement details

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Tags:

Treaty Agricultural Benefits Settlements (“Cows and Plows”) and its Impact on Family Law in Saskatchewan

EN, FR, ES
  • Book Instantly
  • Standard Booking
  • Standard Booking
  • Emergency Request
Book InstantlyStandard BookingStandard BookingEmergency Request
$99
15 min
$99
15 min
$500
45 min
$299
15 min
Consult Format
Telephone
in-person
videocall
Telephone callTelephone callTelephone call
In-person
Videocall		Telephone call
Availability Window1 hr before & 1 hr after (135 min) 1 hr before & 1 hr after (135 min)Set time (45 min)Set time (15 min)
Lawyer Selection
Lawyers are assigned based on availability for instant and emergency requests
Your choiceYour choiceYour choiceNext available
Payment Options
Standard booking receives credit card, e-transfer, paypal, debit, cheque, & cash.
Credit Card
Paypal		Credit Card
E-transfer
Paypal
Debit
Cheque
Cash. 		Credit Card
E-transfer
Paypal
Debit
Cheque
Cash. 		Credit Card
Paypal
Speak to a Lawyer
Minimum notice to book.
Within 1-2 business days*Within 2-3 business days*Within 2-3 business days*Within 24 hours*
Get StartedGet StartedGet StartedGet Started

Based on availability*