Many Canadians hold assets in foreign jurisdictions. When you divorce, those assets may impact the equalization process. The lawyers at...
Many Canadians hold assets in foreign jurisdictions. When you divorce, those assets may impact the equalization process. The lawyers at The Riley Divorce and Family Law Firm understand how to handle international property in a divorce. They could ensure that the property settlement correctly accounts for the assets.
Divorcing spouses in Ontario must equalize the financial benefits they derive from the marriage. You must each determine your net family property (NFP), which is the difference in your net worth between the date of marriage and the date of separation. The spouse with the higher NFP typically splits the difference with the other spouse through cash or the transfer of property.
The Ontario Family Law Act s.8 requires you to disclose to each other and file with the court a sworn statement listing all of your assets and debts. This statement must include any assets located outside of Canada, including:
Although Canadian courts do not have jurisdiction to order the sale or transfer of assets located in other countries, they could compel the disclosure of these assets.
Failing to fully disclose foreign assets could lead to a reopening of a divorce settlement and severe sanctions. If you believe your spouse is hiding foreign assets, immediately contact a lawyer with experience in high-net-worth international divorce cases.
Agreeing on a value for a foreign asset can be challenging. Currency fluctuations, world events, and varying accounting practices can influence the assigned value.
It is imperative to work with a divorce lawyer with a sophisticated grasp of finance and an extensive network of experts who could assist with international property appraisals and valuations.
The value of your marital assets acquired during the marriage, excluding gifts and inheritances, forms the basis for the equalization payment. Property you brought to the marriage is usually separate, but its appreciation during the marriage may be subject to equalization.
Although a Canadian court has no jurisdiction over foreign property, a judge in Ontario could establish the value of the equalization payment. You and your spouse can agree to transfer or sell marital property located in a foreign country to achieve equalization. If you cannot agree, the spouse who owes the equalization payment must use Canadian assets to fund it.
Equalization can be complicated when your marital property includes foreign assets. A lawyer with experience handling divorces involving offshore assets could help you derive creative solutions to achieve equalization.
Your offshore property could complicate your divorce. To protect your rights, work with a lawyer who understands how to handle international property in a divorce.
The lawyers at The Riley Divorce and Family Law Firm have the experience you need. Someone from our team is always available to take your call, so contact us today.
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