Things you must know about property division

Divorce is really a tough thing. It can turn things upside down for the couple. From child custody to business, everything is just shattered. Let’s discuss property here.

Property division too takes a major U-turn when it comes to property division. This blog further on explains some of the important things you must know about property division. Hence, if you are about to go through an unfortunate divorce, and worried about your property, reading this blog will definitely help you out.

How is the property divided after divorce?

Everything About Property Division - Family Lawyer TorontoWhenever there is a divorce, the court considers the contribution of each person when it comes to property division.

Now, what does that mean? The property that you bought during the marriage is all yours to keep after your marriage ends. Any deflection in value (an increase of course) has to be shared within the couple.

In Canada, the decision of the property division is purely based on the equalization of the property. It ensures that the fair division of property takes place, and no party goes through any sort of injustice.

Equalization of the property equals the increased property of both spouses and hence keeping each of them away from any sort of unfair division.

Exceptions to the equalization rule

Now, are there any exceptions to the equalization rule? Yes, there are. What are they? Do read them out below.

1) The property other than the matrimonial home which is gifted from someone other than your spouse is excluded from the calculations of the property equalization.

2) The property which is acquired by inheritance other than the matrimonial home is excluded from the property equalization calculations too.

3) The life insurance policy that is payable after the death of the insured won’t be impacted under the equalization rule.

4) Any sort of damages under the personal injury claim is excluded from the equalization rule too.

5) Canada pension law eliminates the unadjustable pensionable income from the equalization rule too.

Equalization property rule calculations

Now, let’s understand the calculation process of the equalization property.

1) To begin the process, the property value of each spouse is calculated. It includes all assets of the property. Yes, the matrimonial house won’t be considered here, but other than that every asset of the property will be taken into consideration.

2) Now comes, the debt calculation. The debts will be subtracted from the assets. The debt value more than the asset would nullify the valuation for the subsequent calculation.

3) Now, the value of the assets at the date of marriage will be calculated. Again, the matrimonial home will be excluded here. In case, the debts are more than assets, the value will be considered negative for the next calculation.

4) Now, the date of marriage assets will be subtracted from the valuation date assets. Here, the NFP will be calculated.

5) Now, the lower NFP will be subtracted from the higher one. The difference will be divided between both parties. This is an equalization payment, which implies that the spouse with a higher NFP will be paying the amount to the spouse with a lower NFP.

We hope that you are now clear with the property division. Yes, property division is a complicated process, but the equalization property rule ensures that the property division is completely fair.

If you desire to get more information or if you are looking for any sort of legal assistance regarding the property division, you can count on Jane Mukongolo, the best divorce lawyer in Toronto. Our expertise and experience help us immensely in terms of keeping you away from all sorts of injustices.

To connect with our experts and get help from the best family lawyer in Toronto, do contact us at (647) 660-9832.