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Divorce & Family Law This forum is for discussing any of the legal issues involved in your divorce.

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  #1  
Old 02-01-2014, 07:36 PM
North of 40 North of 40 is offline
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Default Equalization Payment Question

Evening everyone.

As I kind of muddle may way through this. I've become
Pretty knowledgeable on motions, case conferences etc.
Yikes ...not a good thing. I quickly learned not to take threatening lawyers letters to seriously. Lol.

But I have to keep plugging..

My question...does any one have any knowledge on Equalization
Payment?

So essentially, we've gotten all our assets and liabilities figured out.
However, after all the calculations my wife's lawyer says I owe
Another 100k in equalization.

I asked my hopefully Stbx to explain it to me but she doesn't understand it and is just going on what her lawyer says.

Can someone , Mess ?? Maybe?? Or anyone knowledgeable in this Area explain this to me?


Thanks,

Take care,
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  #2  
Old 02-01-2014, 07:39 PM
Berner_Faith Berner_Faith is offline
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Numbers would be helpful...no one can tell you what the equalization payment will/should be without some numbers.
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Old 02-01-2014, 08:02 PM
Mess Mess is offline
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I'm not exactly clear on your question, so here are the basics.
  1. Do not list the matrimonial home if owned coming into the marriage; this is dealt with separately.
  2. For each party do the following separately....
  3. Add: all assets brought into the marriage.
  4. Less: all debt brought into the marriage.
  5. If there is a net debt brought in, and this is paid off during the marriage, then this is considered a gain during the marriage. This might commonly be OSAP loans.

  1. Separately, excluding any inheritance, insurance claim that has NOT been co-mingled with family assets....
  2. Add: all personal assets, including valuated pension; RRSP should be net of tax.
  3. Add: debt brought into the marriage that has been paid off, as mentioned above.
  4. Add: 50% of net asset of marital home (assessed value, less any outstanding mortgage or tax debt)
  5. Add: 50% of any joint property; include estimated value of furnishings and appliances.
  6. Less: Personal debt.
  7. Less: 50% of joint debt.
Subtract the total brought into the marriage from the total at the end of the marriage. Do this for both parties. This is called your NFP. For the purposes of the Ontario Family Law Act, you cannot have an NFP less than zero. In other words, if all you have is debt, you do not split the debt.

The total of both parties is then split in half. This is the amount each should leave the marriage with. One party will pay the other an amount to equalize their NFP.

That is the basic explanation. Some items may be arguable or difficult to value. It is helpful if parties can come to an agreement and not waste thousands of dollars arguing over the value of the dining room table, or if the snowmobile was property of one party or a family item.
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Old 02-01-2014, 08:03 PM
North of 40 North of 40 is offline
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Ok. These will be rough numbers
15 year marriage

My pension is split (spouse didnt have a pension )
Government pension

Mat home worth 650. Remaining 400
So ... 125 k each

Another property. Essentially after mortgage and pre
Marriage value is deducted ex will get another
30k

Hope this helps.
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Old 02-02-2014, 11:13 PM
AnarX AnarX is offline
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The length of the marriage is irrelevent. How much is the valuing your pension?

125K + 30K = 155K
So, maybe the difference is from your pension value. Just a thought.
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Old 02-03-2014, 06:39 AM
North of 40 North of 40 is offline
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Morning..


That's kind of the way I'm thinking it.

There are a few other things, like a minor osap from back in the day etc. but nothing to get to that number.

Mind, I'm just having my pension valued, so she wouldn't know the exact number.
My ex is just working with a hypothesis.

We already had a mediated agreement in place, signed witnessed, done by a lawyer etc. This was never mentioned (the extra 100k). (Shot down by ex's lawyer)

When I asked why the mediator didn't mention it,who seemed quite bright, I was told, she didn't know about it. This didn't make any sense. I was thinking, a lawyer who made this mistake,would eventually find themselves in trouble legally themselves.

I've asked my lawyer for clarification when I heard it, but of course no one works on the wknd. Hopefully, I'll find out today.
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Old 02-03-2014, 09:33 PM
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Rioe Rioe is offline
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If you already had a mediated agreement signed and done, why is your ex reopening it? They should be providing clear calculations that demonstrate where their 100k number comes from. There may well have been an asset that was forgotten and not mentioned to the mediator at the original sessions, but if they are trying to reopen the agreement because of it, they should be providing clear documentation to support the request.
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Old 02-04-2014, 09:26 AM
North of 40 North of 40 is offline
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As I said earlier, it was signed, witnessed etc etc.

Moreover, it was a 'Open Mediated', Thus, could be used in court. Not that it really matters.

My ex wife's lawyer informed me/ my lawyer, it is was not fair, as she had not sought 'independent legal advice' prior to signing.

In the end...I'm presuming we'll have the identical deal with thousands in legal costs added.

Re; the 100k, ex spouse's lawyer bandies numbers around endlessly.

I'd throw the lawyer's name out but I'm not sure I'm allowed to. If you google her name she doesn't have a good rep other than dragging cases out endlessly.

Family Law at best is shakey.
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Old 02-04-2014, 09:40 AM
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I would immediately have your lawyer request your ex pay security for costs to the court. Not sure how that is done in your province but your lawyer would know. It's like saying "ok you want to rehash an already agreed-upon separation agreement." "we'll play that game but you have to be prepared to pay when it is proven that she did, indeed, have ILA at the time the agreement was made."

That might clip her wings a tad and make the other side sit up and take note. Further you could possibly request a case management judge assigned for the whole matter. The other side won't like that I'm sure.
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Old 02-04-2014, 09:47 AM
AnarX AnarX is offline
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Quote:
Originally Posted by North of 40 View Post
My ex wife's lawyer informed me/ my lawyer, it is was not fair, as she had not sought 'independent legal advice' prior to signing.
Without knowing any more, I would still hold your ground. If she did not seek ILA, that is her problem and she has to prove it needs to be changed --- not you.

If the previous figures were agreed in open mediation, I recommend that you counter your wife's lawyers communication with the following simple question: "Why are your calculations in 2014 DIFFERENT from that previously calculated/agreed in mediation?"

This may not be apparent but there CAN NEVER be a logically defensible difference UNLESS one of them (and possibly both) was done wrong. Since it was in open mediation, you have every right to instruct your ex's lawyer to consult with the previous mediator and answer the above question.

If her lawyer does not answer your question within a week, send a 2nd letter repeating your question and insisting that you still have not received an answer.

My point is this: You want to re-direct the focus of the debate towards something you can handle. The lack of ILA is going to be a never-ending LEGAL discussion and that is a waste of everybody's time --- despite it being the bread and butter of the lawyers.
HOWEVER, calculating numbers is black and white when it is done together. Lawyers can not argue over numbers the way they can argue over the other nonsense that comprises their profession.

Last edited by AnarX; 02-04-2014 at 09:50 AM.
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