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Legal Ease
Legal Ease, Lawyer
Category: Canada Law
Satisfied Customers: 95895
Experience:  Lawyer
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Leaving all personal items aside, if the amount left owing

Customer Question

leaving all personal items aside, if the amount left owing on our mortgage is 237000.00 and we can sell it for 315000.00, our debt is 53000.00 on our vehicle(new) and 24000.00 loan. my pension is worth about 30000.00 and my spouse is worth 360000.00. how does the equalization of net family property work in this scenario. we both agreed on each owning our personal items and splitting of furniture.
JA: Because employment law varies from place to place, can you tell me what state this is in?
Customer: sorry, im in Canada, ontario
JA: Has anything been filed or reported?
Customer: not yet, my spouse is leaving me and I like to know where I stand
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 29 days ago.
Category: Canada Law
Expert:  Legal Ease replied 29 days ago.

Hello! My name is***** you for your question. I'm reviewing it now, and will post back again shortly.

Expert:  Legal Ease replied 29 days ago.

I will explain how to work out the equalization payment but can you first let me know how long you have been married for?

Also, did you acquire the matrimonial home after you got married?

Customer: replied 29 days ago.
we got marride aug 81998
Expert:  Legal Ease replied 29 days ago.

You missed one question.

Also, did you acquire the matrimonial home after you got married?

Customer: replied 29 days ago.
we rented until we bought in 2007
Expert:  Legal Ease replied 29 days ago.

This is how you do the calculation.

You take the value of each asset that is in your own name and take half the value of any jointly held asset.

If the asset is the house you subtract what the disposition costs would be. If it is and RRSP you also reduce the value by what you would have to pay in taxes if you cashed the RRSP out.

Then if any of the assets are from a gift or inheritance you subtract the value of that asset.

You then subtract the debts in your name (again taking half if the debt is joint).

Finally you subtract the value at the date of marriage of any asset brought into the marriage.

Then you do the same calculation for your spouse.

You will get a total for each of you. This is called your Net Family Property.

The spouse with the higher amount pays half the difference between the higher amount and lower amount to the other spouse to equalize the totals. That is the equalization payment.

Does that answer your question?

Please feel free to post back with any follow-up questions you may have. If you don't have any then I hope I have earned a 5 star rating but if you don't feel that I have please don't hesitate to reply back and let me know what more I can do to assist you. Finally, please know that even after you rate me I will be here for you and you can ask follow-up questions if you think of them later on at no further charge of course.

Expert:  Legal Ease replied 28 days ago.

Is there anything more I can help you with at this point in time?

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