Division of Assets

When separating the legal identity of a relationship informs a party’s rights over how assets are divided. 

Did you know? In Ontario the Family Law Act, provides for the equal division of financial gains made during a marriage, only to legally recognized married partners. Whereas common-law partnerships are limited to the assets that they brought into the relationship or directly acquired during it. 

Christine recognizes partners going through separation could be experiencing different stages of grief entangled in the financial division of assets. Division of Assets are challenging beyond their financial worth because these assets can hold significant sentimental value, making negotiation more sensitive and prone to disagreement. Sometimes a ‘thing’ is more than an object because of the story attached to it. These negotiations can be emotional charged but do not need to be toxic. 

In Mediation, clients can safely talk about the assets that hold meaning, to improve shared understanding, and to motivate collaborative negotiation to create win-win dynamics. These conversations can create opportunity for closure, and the financial surety needed to build your next chapter.

How are Division of Assets resolved?

Christine’s mediation process supports her client’s documentation of the following:

1. Sworn Financial Statements 
   • Each party will author a Financial Statement (form 13.1) detailing their individual net worth. 
   • The documents when consolidated in the Net Family Property Statement (13.b), to identify the total net worth of both parties as of the date of separation.
2.  An Equalization Payment agreement
   • The legal guidance is that married couples share the value of the property and financial enrichment /debt over the course of a marriage. 
     • When parties separate, the party who has accumulated more enrichment/debt over the course of marriage must share the difference of half the value. The intent is to make both parties equal in asset value after separation.
   • The Equalization payment amount, including who is payor and payee, and how payment is to be satisfied. 

*Asset considerations include but are not limited to: matrimonial home(s), assets, debts, pensions and exclusions

What’s in your agreement?

The Memorandum of Understanding agreement will include:

• Each party’s net worth, 
• The combined net worth, and 
• The agreed upon equalization payment. 
• The agreement will also include terms and conditions for satisfying the payment between parties. 

In turn the Memorandum of Understanding will be provided to the party’s lawyers to formalize into a Separation agreement for submission of a Divorce Order.

Together we create transparency of your financial blueprint to inform how you can move forward.