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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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Old 01-01-2009, 02:54 AM
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Default Net family property and the equalization payment

In another thread I offered a spreadsheet that will hopefully give folks some insight as to the mechanics of the calculations that are involved in the equalization payment for property division purposes.

So, here it is!

Please be warned that the spreadsheet is not dressed up and you will get more out of it by studying the methodology and if you know Excel, but it does give a pretty good example of how one can calculate:

-Net Family Property
-the Equalization Payment, and
-the adjustments used to arrive at the final payment made to settle property division...

...for a married person with a matrimonial home. Bonus points if you make the necessary adjustments to account for common law, or other, situations!

I'm fearful that it will provoke more questions than it answers, but hopefully it helps some folks figure out the calculation.

Please feel free to post questions/comments - I think
Attached Files
File Type: zip Sample NPV calculation for equalization payment.zip (7.6 KB, 646 views)

Last edited by dadtotheend; 01-01-2009 at 03:38 AM.
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Old 01-01-2009, 07:44 AM
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Default mortgage principal

I see on this form house expenses being split. I have lived in the matrimonial house since she moved out in Feb/07. I have paid all household expenses since then.Should I be claiming half of all payments ?
I would owe her rent for her half but expenses would be much higher than the rent.Any suggestions
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Old 01-01-2009, 10:08 AM
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I want to make it clear that I am not a lawyer and am not qualified to give legal advice. I just have a good understanding of the mechanics of the equalization calculation.

An attempt to answer this question was made in your thread called "Matrimonial home".

That said, I think...

If today's value of the house is used and the person who stayed in the house paid the expenses after the other spouse moved out, then the person who paid the expenses can claim half of the mortgage principal, property taxes, insurance and improvements (but not other expenses) that the other spouse is responsible for but didn't pay between move out date and settlement date.

If the separation date value of the house is used, then this adjustment isn't made.

Of course, this just creates an opportunity for argument as each spouse can seek to rely on the valuation date that will be most advantageous to him/her. It would be interesting to hear from anyone who had that happen to them.

Last edited by dadtotheend; 01-01-2009 at 10:27 AM.
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Old 01-01-2009, 10:16 AM
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as you can see I am no lawyer either...I find so much info online but it is ahard to make sense of it all. It is simple math but as soon as emotions and egos get involved ....It gets complicated. My ex is on her third lawyer and I do not know why? I have a feeling the lawyer's have told her her chances of a judge agreeing with her and she fired them for that reason.
Does a lawyer have a duty to tell a client the odds of the outcome if it was to go to court?
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Old 01-01-2009, 10:29 AM
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Originally Posted by vstar33 View Post
My ex is on her third lawyer and I do not know why? I have a feeling the lawyer's have told her her chances of a judge agreeing with her and she fired them for that reason.
Does a lawyer have a duty to tell a client the odds of the outcome if it was to go to court?
Please start another thread for that question.
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Old 01-01-2009, 11:24 PM
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OK so I bought the house the year before I got married. Nine months after the wedding my wife moved out and I have been living in the house. We have not yet gone to court. Is she entitled to half the value of the house because she has never made a payment or contribution towards it at any time. If that is the case I will move out and let the bank take it over.
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Old 01-01-2009, 11:53 PM
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She is entitled to half the equity in the house, regardless of how much equity was there when she moved in. If you were common-law then you would deduct the equity you had when she moved in from the equity when she moved out and that difference would be split. Effectively, the day you married her, you gave her half the equity.

You could try for a claim for unequal division of family property based on it being such a short marriage and her non-contribution, but my understanding is that it a difficult claim to make and you would have quite a burden. For her non-contribution to be compelling, it can't just be that she didn't make a payment, it has to also be along the lines of her doing absolutely nothing and sitting on her hump while you busted your a** - difficult to prove.

It sounds like there can't be much equity in the house if are willing to walk away from it just so she can't get at it. You're leaving your half of the equity on the table and ruining your credit rating in the process by defaulting on the mortgage.

Last edited by dadtotheend; 01-01-2009 at 11:56 PM.
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Old 01-02-2009, 12:08 AM
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There is what she can get via the law, and then there is what she might agree to. If overall there is equity in the house from the time before she moved in, and given the extremely short marriage, she may agree that morally she is not entitled to that equity and allow you to keep it. If it seems fair to most people, there is no reason not to present that to her without feeling like you are trying to get away with something. I am all for 50/50 split in most cases, but in this case it from what I know it seems unfair and it would be dishonourable for her to ask for half of what you brought into your short marriage.
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Old 01-02-2009, 10:20 AM
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There is what she can get via the law, and then there is what she might agree to. If overall there is equity in the house from the time before she moved in, and given the extremely short marriage, she may agree that morally she is not entitled to that equity and allow you to keep it.
That's a great point.

It does presume a degree of amicability (is that a word?). I detect hard feelings here, so that outcome may have to be sought with great sensitivity.
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Old 01-02-2009, 03:10 PM
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ok so she is only entiktled ot the equiry in the home not half the appraised value? Cause there is very little equity
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