The Division Of Property

To begin, both parties prepare financial statements where they list the value of their assets and their debts at a valuation date. The valuation date is the date by which there was no reasonable prospect of reconciliation. If there is not an agreement about the actual date, a lawyer can help you determine the proper valuation date. You need to look at your bank statements, your RSP statements, credit card statements, lines of credit statements as of the valuation. People are also entitled to value their assets and debts that they brought into the marriage.

Once you have gathered all the numbers, it is a simple mathematical equation: (your assets at the valuation date + any debts that you had at the date of marriage) – (debts that you had at the valuation date + assets that you had at the date of marriage). The resulting amount is your net family property (NFP). That’s legalese for your net worth. It is the difference between your NFP and that of your spouse that is divided. For example, a wife has a NFP of $500,000 and a husband has $600,000. The husband has $100,000 more than the wife so that amount is divided in half. He owes her $50,000 to equalize the property and debts that they accumulated.

Where a lot of people can save on legal bills is do the leg work, contact the bank, and get those bank statements as of the valuation date. Some assets need special evaluations such as certain pensions or interests in a business or shares in a privately held corporation. Your lawyer can help explain the necessity of a valuation and refer you to someone who can complete it for you.

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If you, or someone you care about, is dealing with a family law issue in York Region, Durham Region or Toronto, contact Andrew Feldstein & Associates for a consultation.