Statement of income, assests and liabilities

[frustratedwithex]

If there were a number of joint bank accounts as well as a Line of credit for the duration of the marital relationship, 21 years, and they were all closed 2 months prior to asking for the divorce, and separation, are they still considered marital assets.

If the Line of credit was closed 2 months prior, is it still a marital debt?

 

[Mess]

The question can't really be answered they way you are asking it. The line of credit was closed, so that debt was presumably paid off, where did the money come from? The debt didn't just disappear into thin air. Presumably that money came from some other account.

What you are looking for in any case is the NET worth at the disolution of the marriage. My understanding is that the laws in Alberta are different than Ontario but the idea of the NET worth is the same. If you had 5 joint savings/chequing/investment accounts, and 5 joint LOC/credit cards, you will have a net asset (or debt). Close them all and you still have the same net amount left over.

The joint accounts being closed just before separation is a wise move, just be prepared to show where the money went and account for it. If the joint savings was closed and the money spent on drugs and hookers just 2 months prior to separation, be prepared for this to be brought up in court and have the possibility the judge will find that the money should be considered a marital asset even though it was already spent.

 

[frustratedwithex]

It was the STBX that closed all the accounts prior to asking for a divorce.

I have been served with a Statement of Claim and in his formal offer for property division he is listing the LOC as a liability. There is a footnote explaining that this was outstanding at the DOS, and that he paid the whole outstanding account post separation.

I have statements that show that he closed all the other accounts and transferred the money to newly set up accounts in his name, (these are the accounts listed in his name in the property division), but I don't have any paper work on the LOC. I am trying to get this information from the bank, but they can't find a LOC with my name on it. Maybe this is a good thing!!

 

[frustratedwithex]

I just had a phone call with the bank, and the only LOC that they can find with my name on it, listed jointly with STBX, was closed in 2005.

The LOC account STBX has listed in his financial discloser, is in his name alone.

I don't know where this leaves me. I don't know if it means anything, other than he is claiming the LOC as a marital debt of $5k, that he paid off after DOS.

Should it be something I ask for more information about?