Question

Julia and Noah were married for 13years. They have now separated.

On valuation day, Julia the following assets-the matrimonial home held jointly with Noah worth $800,000, with a mortgage held jointly with Noah of $400,000 ,investments worth $36,000 in her name alone, and RRSP $50,000 in her name alone. The antiques crystal bowls she bought before she was married,are now worth $4,000.

At the date of marriage she had a savings account of $16,000 and a credit card debt of $6,000. She also bought antiques crystal bowls worth $2,000.

On valuation day, Noah owned the following assets-the matrimonial home held jointly with Julia worth $800,000 with a mortgage held jointly with Julia of $400,000,a stock portfolio worth $40,000 in his name alone, RRSP $80,000 in his name alone and antiques he had inherited from his grandfather uncle during the marriage now worth $20,000.

At the date of marriage he had savings of $18,000 and student debt of $12,000.

Calculate the following:

a. Each person’s net worth on valuation day.

b. Each person’s net family property on valuation day.

c. Calculate the equalization payment.

d. Calculate each person new net worth after the equalisation payment.

Answer 1

Slution :-

NOTE- Complete answer has been given as per "FAMILY LAW ACT".

a)

1	Calculation of Net Worth
	Particular		Julia	Noah
	House		400000	400000
	Investment		36000
	Stock Portfolio			40000
	RRSP		50000	80000
	Antiques		4000	20000
		TOTAL (A)	490000	540000
	Mortage		200000	200000
		TOTAL (B)	200000	200000
	Net Worth	(A-B)	290000	340000

b)

2	Calculation of net family property
	Particular		Julia	Noah
	Net Worth on valuation date		290000	340000
	Separate Property
	Less - Passive appreciation		2000
	Less - Pre-marital asset
		Saving Account	16000	18000
		Credit Card Debt	-6000	-12000
	Net Family property		278000	334000

c)

3	Calculation of Equilisation payment
	Particular			Amount
	Noah's net family property			334000
	Julia's net family property			278000
	Higher NFP - Lower NFP		(334000-278000)	56000
	Equaly divided		56000/2	28000
	Equilatisation payment from Noah to Julia			28000

d)

4	Calculation of Net worth after equilaisation payment
	Particular		Julia	Noah
	Net worth on valuation date		290000	340000
	Equilisation payment		28000	-28000
	Net worth after equilisation payment		318000	312000