Division of property, or as it is technically known , ‘equalization of net family property’, is the principle by which the net assets of a married couple accumulated during the marriage, are tallied, and equally divided.
Basic Workings of the Property Division Mechanism
Generally speaking it is the difference between the value of each parties’ assets which is divided. For example, if the wife’s total net assets, accumulated during the marriage, total $500,000.00, and the husband’s total net assets accumulated during the marriage total $300,000.00, there is a difference of $200,000.00. Thus, in my example, the wife would have to pay the husband $100,000.00 equalization of net family property payment, which equates to half of the difference between the parties’ respective net family property. In this example, the wife and the husband would each walk away with assets totalling $400,000.00 (ie. equalization of net family property).
Excluded from the equalization of net family property are all of the assets the parties acquired prior to the date of marriage, and gifts received by third parties which are traceable to an existing asset.
Though the legislators’ objective was to achieve a fair division of property upon parties’ separation, many rules which relate to division of property appear unfair, and arbitrary.
Thus, a party who is contemplating a divorce or separation which may entail the division of property would be well advised to seek the advice of experienced family law counsel prior to proceeding.
To learn more, contact me at 613.841.9099 ext. 1 and schedule a free, confidential, consultation.