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

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  #1  
Old 01-28-2014, 02:19 AM
rainman rainman is offline
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Default Pension when calculating equalization

Along with all the assets my ex was left with, which have been valued for the purposes of calculating equalization, can I also include the value of my pension which I have already agreed to split 50/50? My company has given me a value based on her proportionate share and it's fairly significant. So do I add the value of her share of my pension to her numbers in calculating equalization?

Thanks
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Old 01-28-2014, 07:43 AM
Mess Mess is offline
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Yes.

List your pension as "10,000 (50% of 20,000)."

Your ex should list the same amount. If they don't, you should dispute this. Generally, her lawyer should make a correction if you send a letter.
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Old 01-28-2014, 09:14 AM
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Rioe Rioe is offline
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You say in your other thread that your ex got $20k of assets and you got $22k of debt! Why would you be sharing your pension at all? If it's significant, share it in such a proportion that your equalization works out better. Give her 50% less $21k.
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Old 01-28-2014, 09:29 AM
Mess Mess is offline
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No offence, but I have to say this: In a year you will be one of the posters who keep saying how you were hosed by family law.

If you want to have an unequal equalization in order to "end all this" just keep in mind it is your choice.

From the sounds of things, you walked off with the debt, left the assets (bank account?) and now are going through the legal process to sort things out.

How much is the pension? Without that information we cannot give you any reasonable information. Let's say it now totals $200,000......

The total NFP would be:

$200,000 (pension)
Add: $20,000 (other assets)
Less: $21,000 (debt)
Total NFP: $199,000

This should be split 50/50

The situation at present is that:
You: $200,000 (pension)
Less: $21,000 (debt)
Net: $179,000

Her: $20,000 (asset)

You should each end up with $99,500, thus you pay her $78,500.

This is assuming there are no other assets.
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Old 01-28-2014, 08:51 PM
mememe mememe is offline
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I am curious about how to record the pension value on your NFP.

In my case the full evaluation of my pension is on my side of the NFP as is my pension "salary" for the year. The pension value doesn't exist as cash in my hand. The pension "salary" (real) comes from this "pension valuation" (non-existent) . how is this reported?
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Old 01-28-2014, 10:20 PM
Mess Mess is offline
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Here is thorough explantion of the process:
BCH Actuarial Services Inc. Separation/Divorce – The New Law in Ontario

In short, on your NFP you list the full value of the pension which you receive from the valuator. You should also receive an estmation of the income tax payable. You list the liability after the pension value.

You then calculate the equalization payment based on all assets/liabilities. You may then request the appropriate amount of the pension be paid out.
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Old 01-30-2014, 12:01 AM
rainman rainman is offline
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Default Is this correct?

My share of pension -26000
Debt left to me upon separation -- 22000

Ex's Share of pension -26000
Other assets include - 20000
Ex was left with NO debts.


NFP for me is- 4000
NFP for her is - 46000

So do I subtract the $4000 from her $46000 to come up with $42000 and then we divide the $42000 in half ($21000) and this represents the amount my ex owes me?

Also, if ex has no ability to pay me the $21000, how do I use this amount owed to me when we are negotiating spousal support calculations?
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Old 01-30-2014, 07:57 AM
Berner_Faith Berner_Faith is offline
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The ex wouldn't have to pay you. You would pay her less of your pension.

You:
Pension- $52000
Debt- $22000
Net- $30000

Her:
Assets: $20000
Net: $20000

You have a $10,000 difference, you would owe her $5000 to make it $25000 each.
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