Equalization of Net Family Property
A marriage is regarded as an economic partnership and when it ends, the parties are entitled to share equally in the benefits acquired during the course of the marriage. We calculate the growth of each spouse’s net worth from the date of marriage to the date that they separate (i.e. the “Valuation Date”) to determine each party’s net family property value.
We determine what you acquired during the marriage, after deducting what you owe, subtracting what you brought into the marriage, and excluding certain things received during the marriage such as gifts and inheritances, etc. The spouse with the greater net family property pays the spouse with the lesser net family property an ‘equalization payment’ that is one half the difference between their net family property.
The automatic right to an equalization payment only applies to married spouses and not to persons in common law relationships.
Inquire within so we may assist you in determining whether you owe your spouse an equalization payment.