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Equalization | CLEO (Community Legal Education Ontario / Éducation juridique communautaire Ontario)
Special rule for matrimonial homes:
When calculating a spouse's NetFamilyProperty, the value of his or her property on the date of marriage does not include any home that is a matrimonial home on the date of separation. This means if the same spouse still owns the home on the date of separation, his or her NFP will include the home's entire value, not just its change in value during the marriage. This can have a big effect on how much the equalization payment will be, or who must pay it.
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Regarding the above, does this mean that when calculating equalization, the matrimonial home is not factored into the assets/liabilities for either spouse on the date of marriage? The total value of the home is imputed for whomever owns the home on the date of separation (if a valuation was done soon after separation)?
Here's my struggle: common law couple X and Y live in a home for 10 years. 1990-2000. Home is in X's name, both X and Y make monthly payments towards mortgage. In 2000 they get married and X puts 60k to pay down mortgage; the value of home is 300k and mortgage left is 100k. Seems to me that equity should be $200k on X's side on date of marriage.
Fast forward 5 years, the title of the home is transfered from X to Y. Fast forward another 5 years, X and Y divorce/separate, the value of the home is $600k.
So according to the above link, none of the figures I mentioned on the date of marriage are relevant to the assets/liabilities calculation on the date of marriage, and in this case Y will get imputed $600k into their assets side of the equalization calculation.
Is this accurate?
Special rule for matrimonial homes:
When calculating a spouse's NetFamilyProperty, the value of his or her property on the date of marriage does not include any home that is a matrimonial home on the date of separation. This means if the same spouse still owns the home on the date of separation, his or her NFP will include the home's entire value, not just its change in value during the marriage. This can have a big effect on how much the equalization payment will be, or who must pay it.
--------------
Regarding the above, does this mean that when calculating equalization, the matrimonial home is not factored into the assets/liabilities for either spouse on the date of marriage? The total value of the home is imputed for whomever owns the home on the date of separation (if a valuation was done soon after separation)?
Here's my struggle: common law couple X and Y live in a home for 10 years. 1990-2000. Home is in X's name, both X and Y make monthly payments towards mortgage. In 2000 they get married and X puts 60k to pay down mortgage; the value of home is 300k and mortgage left is 100k. Seems to me that equity should be $200k on X's side on date of marriage.
Fast forward 5 years, the title of the home is transfered from X to Y. Fast forward another 5 years, X and Y divorce/separate, the value of the home is $600k.
So according to the above link, none of the figures I mentioned on the date of marriage are relevant to the assets/liabilities calculation on the date of marriage, and in this case Y will get imputed $600k into their assets side of the equalization calculation.
Is this accurate?
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