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Division of family assets. Cars and parts enthusiast

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  • #31
    To the OP,

    I think you have to think of it this way. What you brought into the marriage (except a matrimonial house), you keep. What you and your wife earned/acquired during the marriage, you split(except for inheritence). If your antique car you acquired before the wedding gains in value, you split the appreciation. If it loses value, you split the loss. If her stocks that she bought before the wedding gain in value, you split the gain. Everything needs to be valued and added to the spreadsheet to do a properly asset split.

    If you acquired tools, you split them, or you trade off the value of them against the value of something she wants.

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    • #32
      Originally posted by dinkyface View Post
      It's bought/maintained with family money -> goes on the pile to be split (along with her jewelry). Current value maybe a bit more than what you paid for it, say $5000?



      You keep stressing it is from YOUR account ... but if that account contains your earned income, then it is family property, along with anything you buy with that money. So I'd say, the motorhome is part of the pile to split (along with her jewelry). Current value $1000-$2000 (depending on whether or not you did any major work on it).



      It is likely worth 25K now, not 35K (assuming it is at least 3 yrs old??). Goes on the pile to be split (along with her jewelry).

      Hence, as Rioe said "All the cars bought after marriage will be divided."
      I doubt the car is worth $15000 now.

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      • #33
        Originally posted by billm View Post
        Hmmm,

        I'm surprised by this thread.

        My understanding is that you split the value of everything 50/50 of the net worth increase during marriage of everything regardless if it was acquired during or before the marriage. Exceptions are inheritance, which is excluded if you kept is separate, and also the matrimonial home equity is split equally with no consideration of who owned it before marriage.

        So, forgetting about the inheritance and the matrimonial home, you determine your individual net worth at the date of marriage, and the combined net worth at the end of the marriage (ie both of you) and you walk away with your original net worth plus have the combined increase of net worth.

        For example at date of marriage you had 100K, she had 200K. At the end of the marriage, your COMBINED net worth is 550K (an increase in 250K while married),

        So you walk away with 100K + 250K/2 = 225K
        She walks away with 200K + 250K/2 = 325K

        The concept of 'family' vs 'personal' money is not relevant.
        The concept of exclusive hobby vs family participation is not relevant.
        Retirement accounts are no different - they are simply assets that need to be divided.

        So you have to put a price on everything you owned at time of marriage, and at the end of marriage to determine the net worth.

        Now, who keeps what, is a different matter. Obviously you keep the car stuff, but she gets to share in the increase in value of it during marriage.

        It should be a simple spread sheet evaluating everything, assigning who keeps what or what is sold, which determines a cash buyout to make the final net worth as stated above.

        Also for pension, those are no different than cars and bank accounts etc - they are evaluated and assigned value and shared equally (the increase during marriage shared).
        This is where I must be confused- all I have read is "family assets" are to be divided equally. If something was never used as a "family asset" it would be excluded. That's why I ask these questions!!!! To find out!

        "Exclusive hobby vs family money" is actually in the news right now, the high profile Aquilini divorce. A few friends have been showing me in the paper.

        Pensions, rrsps and family home I think is blatantly straightforward.

        A coworker said he tried to get his ex wife's inheritance split, the lawyer told him no. His ex wife wanted his tools and parts from the garage, the lawyer told her no. The inheritance wasn't meant for him, and the hobby stuff was never meant for or used by her. It was a mediator.

        Maybe he got away with his hobby stuff because of a slack mediator? No idea.

        Comment


        • #34
          The basic principles of the Family Relations Act
          The law about dividing family assets is contained in the Family Relations Act. In general, each spouse is entitled to a one-half interest in all property that is a “family asset”. A family asset is defined as any property “ordinarily used for a family purpose”. The importance of this definition is that property becomes a “family asset” according to how it is used, not according to who owns the asset or whether the asset was bought before marriage or after marriage. If an equal division of family assets would be unfair, a spouse may be entitled to more than half of the assets.
          What is a family asset?
          Typical family assets are the family home and its contents, and the family car. Other family assets might include bank accounts, a boat or recreational vehicle, and investments such as term deposits. If the property was ordinarily used for a family purpose, it will be a family asset.
          Which assets are not family assets?
          Personal property like jewelry and gifts, or property owned and used by only one spouse might not qualify as family assets. Inheritances and court awards generally won’t qualify as family assets, as long the inheritance or court award isn’t used for a family purpose, like paying down the mortgage on the family home or a family vacation. Also, property owned only by one spouse and used only for business purposes often won’t qualify as family assets.
          It is important to know that the court can consider all assets owned by both spouses when dividing the family assets, and may decide that assets which aren’t family assets should be taken into account when dividing the family assets.
          From Dividing Family Assets

          Or, another I read

          For married couples until 2013, the FRA property division provisions take effect when one of four a triggering events has occurred:
          1. A signed separation agreement
          2. A judicial declaration that there is no prospect of reconciliation,
          3. An order of dissolving the marriage or judicial separation, or
          4. An order declaring the marriage null and void.
          Once one of these events has occurred, there is a presumption that all “family assets” are to be divided equally between the parties.
          A “family asset” is defined as one that is owned by one or both spouses and ordinarily used by a spouse (or a minor child of either spouse) for a family purpose.
          Ordinary use means in the course of a customary mode of life of the family rather than a special, occasional or casual use. An occasional or incidental use for a family purpose does not “taint” an asset and turn it into a family asset. However, occasional use coupled with an intention to use the asset for a future family purpose may lead to the finding that the asset is a family asset.
          From BC Divorce Lawyers | Division of Property | Maclean Family Law

          The law is supposed to change March 18th. How will this affect someone like me, my wife moved out Feb 1st, is there a "triggering event" date that will be affected, and how??
          What law will cover me, the "old law" or the new upcoming March 18th law?

          Comment

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