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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 10-17-2009, 05:28 PM
Rao Agnihotri Rao Agnihotri is offline
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Default Dvision of assests

I had a savings of about $40000 before the marriage i.e., on the day of the marriage I have this much money in my bank account. After marriage this amount is now $60000. What I wanted to know that when the money gets divided between husband and wife then it is divided 50-50 i.e. both will get $30000. Or the money which you bring in i.e 40000 will be subtracted from the current value and then it will be divided between the two and each will get (60000 - 40000) = $20000.

Can anyone please clarify?
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Old 10-17-2009, 05:50 PM
Mess Mess is offline
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It should be that what gets divided is the savings from during the marriage, in your example it would be 20k split between you.

Keep in mind though that it is all debt and all assets that are compared so it wouldn't be just the savings account by itself if you had credit cards, etc. You would take all of your savings and assets (a valuable antique for example) and all your debt, from the day before the marriage. Subtract the debt from the asset. This is what each spouse brought into the marriage. (For some, it may be that they brought in debt rather than assets).

Then subtract the debt from the asset on the day of the separation. What you have left is how much your net assets have changed. The change is property/asset that was considered aquired during the marriage, and is split equally.
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Old 10-18-2009, 11:01 AM
Rao Agnihotri Rao Agnihotri is offline
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Default Thanks for response - a follow up question

Can you let me know how does the court know what were the assets or in other words what is legally determined as the assets before the marriage. Does court ask to present all the bank statements on the day of the marriage and how much was owed by each person on the day of the marriage. Or the court asks to present the Canada revenue agency statement, like the tax statements.

Do you know on the Canadain law website where there is more details on this.
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Old 10-20-2009, 09:46 AM
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You are required to do a financial disclosure. The disclosure requires that you provide bank statements from the time before your marriage.

Most people obviously don't keep statements that long, but many people divorce and your bank will understand this, they do it all the time, they will provide the statements.

Many of the long delays in getting a settlement come from chasing the other person for things like financial disclosure and proof of income (usually a tax return is fine).

Usually your lawyer will give you a worksheet for your financial disclosure and you just fill in the blanks and provide the statements to back it up. Your lawyer then does a nice printed copy and signs it, certifying that the statements backed up your numbers.

You will speed your process (and thus save money) if you prepare all this ahead of time as much as possible. So obtain statements for bank accounts, life insurance, investment funds, etc from the month before you married, and from the date of separation.

The date of separation, what they call "valuation date" can be muddy, but you can date it from the point where you were no longer sleeping in the same room (in my case I was sleeping in the basement and my ex was sleeping on the third floor) and the two of you had spoken and agreed to separate. If you can back up the date with something in writing, like an email discussing the issue, this helps if there is some disagreement.

Your ex may disagree on the date depending if there were somehow more assets a few months later, like if stock prices suddenly rose or some such. Their lawyer may point this out to them.

When you separate there is a form on the Revenue Canada website that you can download and fill out, this is the best way to establish that you are officially separated at a particular date.
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