Why what you brought into the marriage matters - BlogBite (23)

Here is a hypothetical scenario:

• You are married and now separated,
• you are completing a Financial Statement,
• you need to make a list of what you owned and what you owed on the date of marriage,
• you are not quite sure why:
• and you are too embarrassed to ask your lawyer for another explanation; or
• you are representing yourself, you do not understand the reason but you have seen the Financial Statement form and you know you have to do that.

Ontario's Family Law Act provides a formula for dealing with assets and debts when married spouses separate. Some people refer to this as "property division" - in fact, the process based on the formula, is called "equalization".

In Ontario, in the calculation of their "net worth" for family law purposes, called Net Family Property, deceive credit for the value of their assets at marriage minus their debts. 

That is why you are preparing that list.....

UPDATE - January, 2018

We are pleased to let you know that our Etsy shop is now OPEN!

Visit it here: SELFREP SUPPORT

In the shop, we make available to you Manuals (E-books) on various topics, to assist you in representing yourself before Ontario's family law Courts.

So far, we have Manuals on:

• preparing an effective Financial Statement (both long-form and short-form); 
• preparing an effective Affidavit; and
• the basics of service and filing...

MORE MANUALS TO COME! 

"Why does it matter what I had when we married?" - BlogBite

BlogBite (12)

Question: "I was married and I am now separated. Someone told me that it is important for me to show what I had when I married my wife. Why does this matter?"

Answer: Ontario's Family Law Act provides a mechanism for the sharing, on separation, of the spouses' assets and debts, by value. The Act contemplates the sharing by the spouses of the increase in their net worths (based on a formula) between the date of marriage and the date of separation. In other words, a separated spouse gets credit for the value of their assets (less liabilities) at marriage. This is why it's important for you to establish that value.

Do you have any further questions? Give us a call....

Spousal RRSPs - mine or hers? - BlogBite

BlogBite (3)

Question: during the marriage, I contributed to my Wife's RRSP - on separation, is it mine or hers?

Answer: It's hers. That being said, if you were married, on separation you will receive one-half of the notional value of the RRSP through the equalization mechanism (the division of assets in Ontario). The RRSP will be one of the assets listed as part of her net family property and will be equalized with you.

Do you still have questions? Please call us for a free 30 minute consultation.

Pensions in Family Law

Pensions are relevant in family law for a number of reasons. These include the issues of income and equalization.

On the income front, a pension in pay is likely an income source for the purposes of calculating support obligations. In other words, individuals receiving a pension may still be obligated to make support payments. Retirement does not signal an automatic end to support payments.

Pensions are also assets which are subject to equalization under the Family Law Act. They have a value for the purposes of one's net family property and we use actuaries (pension valuators) to establish that value. Just like with respect to all other assets subject to equalization, a pension valuator establishes any value the pension had at the date of marriage (for which you get credit), as well as the value of the pension at the valuation date.

In some family law cases, a pension can be both an income source and an asset subject to equalization, which gives rise to the issue of "double dipping". You are encouraged to seek advice on this very interesting but somewhat tricky area of family law.