Under Ontario law, when a marriage ends, each spouse should start their new life with an equal share of the property acquired during their union. Locating, valuing, and negotiating an equitable distribution in Toronto high-asset divorces requires a sophisticated understanding of business and tax issues, sharp legal skills, and a focus on the long game.
A tenacious high net-worth divorce lawyer from The Riley Divorce & Family Law Firm could help you throughout this process. The firm’s lawyers have the expertise and experience to ensure a fair division of family property. They are cognizant of confidentiality concerns and potential reputational damage and will work diligently to minimize these impacts while protecting your property rights.
Any Ontario residences used by your family at the time you and your spouse separate are considered matrimonial homes. You both have equal rights of possession in each matrimonial home, even if it was solely owned by one spouse prior to marriage. Using it as a family dwelling or vacation home converts it into a matrimonial home.
Sometimes one of the homes is the location of a business or is located on a working farm. In that case, the right to possession applies only to the dwelling and not to the commercial enterprise. According to the Ontario Family Law Act s.11, courts will make every attempt to preserve the business or farm and will not order it to be sold unless there is no other feasible method of achieving a just result.
Most issues regarding matrimonial homes are most efficiently settled by one spouse buying out the other’s interest. However, if the spouse surrendering their possessory interest is cash-poor, creative solutions may be necessary. A skilled Toronto lawyer is adept at working within legal parameters to resolve these issues and ensure that an equitable distribution is achieved in high-asset divorces.
The Ontario Family Law Act s.5 requires equalization of each spouse’s net family property when a couple divorces. Calculating the net family property requires establishing the value of all your assets as of the date of separation. You then subtract your net worth at the time you married from your net worth on your separation date to obtain your net family property. Whoever saw the most economic gain during the marriage must pay half the difference to the other spouse.
Every detail can make thousands of dollars of difference when the couple has significant assets. For example, the separation date is the valuation date for the marital property. However, separation often happens gradually over time, especially when a couple has more than one residence. Because the separation date can significantly impact the value of assets—real estate values, currency exchange rates, stock market performance, and interest rates all can influence the valuation—it is often a matter of intense negotiations.
Similarly, there may be disagreement about how to value specific assets or whether an appraised value is accurate. There could be tax implications. The Toronto lawyers at The Riley Divorce & Family Law Firm could anticipate these issues that may be present in high-asset divorces and call on their extensive network of valuation and tax experts to assist when necessary to ensure that the distribution of funds is fair and equitable.
A negotiated settlement is beneficial for anyone getting a divorce, but it is especially so when a couple has considerable resources. Negotiating the outcome ensures privacy and allows you to retain control over the settlement rather than accepting a judge’s decision in public proceedings.
Couples who are committed to working together to resolve their issues and keeping the matter out of court could seek a collaborative divorce. In a collaborative divorce, each spouse is represented by a lawyer, but the couple shares the services of other experts. When property division is an issue in contention, these experts might include tax professionals, financial planners, appraisers, and forensic accountants. You and your lawyers must sign a contract agreeing not to litigate the issues, and if one of you reneges and chooses to go to court, they must hire another lawyer.
Mediation is another option that works well for many Toronto couples going through a high-asset divorce to achieve equitable distribution. Like the collaborative process, mediation is confidential, and the couple decides when they have reached a reasonable resolution. Like collaborative divorce, a successful mediation results in a written agreement that is submitted to the court and incorporated into an enforceable order.
When you and your spouse have considerable assets and your marriage ends, the stakes can be enormous. Collecting the necessary information for an appropriate equalization is time-consuming and complicated, and errors or oversights could be costly.
Work with the well-versed lawyers at The Riley Divorce & Family Law Firm to understand you options for an equitable distribution in Toronto high-asset divorces. They have years of experience representing people of substantial means in marriage dissolution actions, and they are eager to put their expertise at your disposal. Reach out anytime to get started—they are always available to speak with you.
Now you can have your Consultation with Paul Riley any time from the comfort of your own home. With video calls from Zoom, your Team at The Riley Divorce & Family Law Firm can meet with you virtually, and learn about your case. All you need is a smartphone, tablet, laptop, or desktop with a built-in camera and microphone.
Paul Riley Law Office
