Pre-marital asset – included in owner’s net worth calculation for value as of marriage date.
If still owned at end of marriage – included in owner’s net worth calculation for value as of separation date
Equalization divides the spouses’ combined net worth increase/decrease in two so that each leaves the marriage with the same net worth change over the course of the marriage.
For example, the increase in a pension over the course of a marriage is divided because it is assumed that the spouse earning the pension had the support of the other spouse in going to work every day, and the intention, had the couple stayed married, was that it would have been their mutual retirement income.
There are some exceptions, most notably occurring if debt was accrued and the overall net worth decreased, inheritances, and the handling of the matrimonial home.
Therefore, the increase or decrease in value of an asset over the course of the marriage is what is divided.
This is the default position of a court. But then the grey area of negotiation and persuasion comes in. If you can convince a judge that you had nothing to do with an asset that lost value, and it has clearly always been under the ownership and maintenance of your ex, then you might be able to argue that its depreciation should not be included. If an asset gained value and you assisted with the maintenance and it was considered family property that everybody used, then you could argue that its increase should be divided as this was partly due to your efforts.
To Suze135 – can you prove that you had anything to do with this waterfront lot? Did you get any use out of it, ie go there camping as a family? Were you participating in the savings process to someday build a family cottage on it? Was the plan to someday sell it and fund family purchases or retirements? What can you use to demonstrate that it was ever considered family property instead of just your ex’s property? Proof that you paid the property taxes yourself could be a key element.
To SomeGuy – that sucks! But the process isn’t finished yet? Do you have any documentation to prove her ‘mine all mine’ approach to the asset? If she was demonstrably unwilling to share it with you in any form, then perhaps you can successfully argue that the loss also should not be shared.
More accountantly inclined people may correct me, but overall, some things are black and white, and everything else depends on how much documentation you have and how persuasive your lawyer is. And if the value of the asset/loss is worth spending the money to fight over.
