How To Figure Your Property Claims in Your Separation or Divorce in Ontario! Part Three

How to Figure Your Property Claims in Your Separation or Divorce in Ontario! Part Three

In a previous video, we discussed the calculation of your net family property to figure out your property claim in your separation or divorce.

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

I discussed a four-step formula to figure out your net family property.  Your net family property is the net value of your assets and property after you have deducted your debts and liabilities.

An example of how to calculate your net family property will give you a much better idea about this important concept in Ontario family law.

The first step is to calculate the value of a spouse’s property on valuation date.   In this example, John is a joint owner of the matrimonial home with his wife on the date that John and his wife separated (the valuation date is usually the date of separation). 

The matrimonial home has a value of $150,000.  His interest in the home is $75,000 since he is a joint owner of the home.  The matrimonial home was bought after John and his wife married.  John has a pension valued at $60,000.  He has one RRSP worth $15,000 and another RRSP worth $20,000.  John’s total assets on the date of separation are $170,000. 

The second step involves calculating the value of all debts and liabilities of a spouse on the valuation date which is the date of separation in this example.  John has a number of debts on the date of separation.  The mortgage on the house is $110,000.  This is a joint debt since both John and his wife are on the mortgage. 

Therefore, John’s portion of the mortgage debt is $55,000.  He has a car loan of $15,000.  He also has total credit card debt of $6,500.   He has another loan of $10,000.  John’s total debt on the date of separation is $86,500.

The third step involves calculating the value of a spouse’s property, other than a matrimonial home, owned by a spouse on the date of marriage after deducting all debts and liabilities owned by a spouse on the date of marriage, from the value of the spouse’s property.  John had assets of $12,000 at the date of marriage.  He also had debts of $4,000 on the date of marriage. 

Therefore, the value of John’s property on the date of marriage after deducting his debts on the date of marriage is $8,000.

The fourth step involves excluding the value of all property set out in section 4(2) of the Ontario Family Law Act, such as gifts or inheritances given to a spouse after the date of marriage.  In this example, John received an inheritance from his uncle in the amount of $25,000.  This inheritance of $25,000 from his uncle is excluded from the calculation of John’s net family property.  

How do we exactly calculate John’s net family property?  First, John’s total assets on the valuation date are worth $170,000. 

Next, you have to deduct the value of John’s total debts and liabilities on the valuation date.  His total debts on the valuation date is $86,500.  Therefore, deduct $86,500 from $170,000, the value of his total assets on valuation date which equals $83,500. 

Then you have to deduct the value of John’s property on the date of marriage after deducting his debts on the date of marriage from $83,500.  Therefore, deduct $8,000 from $83,500 which equals $75,500.   

John’s inheritance of $25,000 is excluded from the calculation of his net family property.  Therefore, this figure is not included in the net family property calculation.

John’s net family property, therefore, is $75,500.

I will discuss the next stage in figuring out the property claims in your separation or divorce in Ontario in the next video.

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  

Thanks for watching this video.