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  • Equalization Payment Question.

    Hi There,

    Can someone do the math for me....


    My ex came into the relationship with a Net Family property of -40k (ie 40k debt).
    When we separated, she had a NFP of -15K (ie 15k debt).

    I came into the relationship with a NFP of about 5K, and I left with about 15K.


    Would there usually be an Equalization payment in this scenario?

    I appreciate your help!

  • #2
    Net Family Property

    Lukas,

    I may stand corrected, but, assuming that you are married, I believe that your ex's NFP would be calculated as 0, I believe the change in your NFP would be calculated thusly, NFP (date of valuation, separation) - NFP(at date of marriage), in your case 15-5= 10. This difference would be duivided by 2, with a result of you owing your ex = 5K. I hope this helps. I believe the court sees a negative NFP as a zero. Her NFP I believe would be calculated as 0-0= 0.

    When we separated, she had a NFP of -15K (ie 15k debt)
    .

    This is the only part that may alter the situation Lukas, if the debt was jointly shared, then 50% of the debt should be put on both of your NFP's, however it seems it is her debt and she has assumed it, therefore it stays on her NFP, with my previous calculation probably a correct one.

    Good Luck Lukas

    Comment


    • #3
      Any idea who I could contact to verify this?

      It seems unfair to me. She's walking away with 25K LESS debt.... and I'm only walking away with 10K MORE assets...

      After reading alot of these forums, it seems to me that marriage/divorce is Very Very expensive for the higher income individual.

      I was only married for 2 years -- I am young and made a big mistake. Now I might owe a fair amount of money, as well as spousal support.... I guess one way to look at it is that its a valuable lesson learned

      Comment


      • #4
        Lukas

        Did you help pay down her debt Lukas?

        Was the debt joint ( did you absorb the debt as well) or was the debt solely hers? Did you help her pay the debt down?

        Is your ex working and if she is , is there a significant difference in your wages?

        Don't forget Lukas when you calculate your NFP, include everything, debts change in pension, furniture, automobiles.

        Are the figures the same?

        Mcbroke.

        Comment

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