How To Figure Out Your Property Claims in Ontario-Part Two!

How to Figure Out Your Property Claims in Ontario-Part Two!

The next critical step in discussing the issue of property claims in your separation or divorce is the calculation of your net family property.

Hi, my name is Thomas O’Malley.  I’m an experienced family lawyer in Durham Region and the GTA.

The calculation of your net family property is critical to determine whether you have to pay an equalization payment to your spouse or whether you will receive an equalization payment from your spouse.

The Ontario Family Law Act defines “net family property” as the following:

the value of all property, except property described in section 4(2) of the Ontario Family Law Act, that a spouse owns on the valuation date, after deducting,

(a) the spouse’s debts and other liabilities, and

(b) the value of property, other than a matrimonial home, that the spouse owned on the date of marriage, after deducting the spouse’s debts and other liabilities, calculated as of the date of marriage.

According to section 4(2) of the Ontario Family Law Act, the value of the following property that a spouse owns on the valuation date is excluded or does not form part of the spouse’s net family property:

1. Property, other than a matrimonial home, that was acquired by gift or inheritance from a third party after the date of marriage.
2. Income from property referred to in paragraph 1, if the person who gave the gift or made the will expressly stated that it is to be excluded from the spouse’s net family property.
3. Damages or a right to damages for personal injuries, nervous shock, mental distress or loss of guidance, care and companionship, or part of a settlement that represents those damages.
4. Proceeds or a right to proceeds of a policy of life insurance, as defined in the Insurance Act, that are payable on the death of the life insured.
5. Property, other than a matrimonial home, into which property referred to in paragraphs 1 to 4 can be traced.
6. Property that the spouses have agreed by a domestic contract is not be included in the spouse’s net family property.

The calculation of a spouse’s net family property really involves a four-step formula:

(1)       calculate the value of a spouse’s property on valuation date (the valuation date is, for most practical purposes, the actual date spouses separated);

(2)       deduct the value of all debts and liabilities of a spouse on valuation date from the value of the spouse’s property;

(3)        deduct the value of all property, other than a matrimonial home, owned by a spouse on the date of marriage after deducting all debts and liabilities owed by a spouse on the date of marriage, from the value of the spouse’s property;

(4)        and exclude the value of all property set out in section 4(2) of the Ontario Family Law Act listed above.

I will you a great example of how to actually calculate your net family property in the next video on this series on property claims in your separation or divorce in Ontario.

Make sure you spend some time with your family lawyer discussing this important issue in your separation or divorce.

If you have any questions about your separation, divorce or family law case and you would like our help, there’s a few ways to contact our office.  You can leave a message on my Facebook law office page, visit my website at www.canadiandivorcelegaladvice.com, or call me directly at 905-434-8837.  We would be happy to speak to you.

Oh, by the way, did you know you can protect your family law rights and get essential information on settling your family law issues with your former spouse with the daily indispensable family law advice and tips at my FREE Facebook group?

Click here to find out more: Durham Region Separation and Divorce Legal Support Group 

You’ll find the group and join.  

Thanks for watching this video.