Asset division resulting from divorce can be remarkably complex, especially when you and your spouse have substantial assets, own a business or professional practice, or hold wealth in real estate, foreign assets, or collections like art or vintage cars.
Obtaining a favorable division of assets in Toronto requires attention to detail and a willingness to explore all options. Speak with an experienced property division lawyer at The Riley Divorce & Family Law Firm about a strategy to achieve your asset division goals.
The asset division method enshrined in Ontario law anticipates that each spouse should profit equally from the marriage. Each spouse determines their net worth at marriage and on their separation date, with the difference being their net family property. The spouse whose net family property has a higher value splits the difference with their spouse.
The property you owned at the time of marriage is not included in your net family property calculation. However, if your spouse contributed to the property’s increased value, they could have an interest in the appreciation. Inheritances are generally separate but could be part of your net family property if you treated the inheritance as family property or used it as a matrimonial home. Similarly, each spouse’s debts when married are separate responsibilities unless a spouse assumes responsibility for them.
Work with a Toronto lawyer to confirm which assets and liabilities are treated separately and which must be included in the net family property calculation. Professional assistance could ensure you avoid inadvertently making a costly error.
You might be inclined to estimate values for items like vehicles, collectibles, personal property, and even the marital home. In many cases, the cost of professional appraisals is worthwhile, if only for the reassurance they can provide. When you and your spouse dispute the value of a specific property, a professional appraisal can provide the documentation you need to support your numbers.
When you and your spouse have an interest in a business, the opinion of a professional valuation expert is essential. There are multiple legitimate methods of valuing a business, and you and your spouse may come to different values even when you both use experts. Negotiation can close the gap in many cases, but if not, a judge will consider the most appropriate method under the specific circumstances.
A diligent Toronto lawyer has a network of highly qualified and certified appraisers and business valuation experts and could help divide assets during a divorce. Investing in the services of well-qualified valuation professionals often pays for itself when the settlement is finalized.
The law presumes that equal sharing of the financial benefits of marriage is appropriate in almost all cases. However, the Ontario Family Law Act s.5(6) allows a deviation in rare cases. When you believe that an equal distribution of assets would be shockingly unfair in your case, discuss the matter with your Toronto lawyer.
The law allows deviation from a 50/50 split when an equal division would be excessive due to the following circumstances:
A variation from equalization is also possible when the couple has been cohabitating for less than five years, and one spouse’s equalized share would be disproportionately large, given the brevity of the relationship.
Except in cases of brief relationships, courts rarely approve deviations from equalization. However, a well-versed lawyer could make a compelling case for deviation when you can prove your spouse intentionally wasted assets or fraudulently hid liabilities before marriage.
The assets you take from your marriage could determine your lifestyle for years. There are ways to influence the equalization process to ensure your portion is as generous as possible.
The Riley Divorce & Family Law Firm has extensive experience handling property division matters and obtaining a favorable division of assets in Toronto. Call anytime to speak with a knowledgeable professional and to set up an initial consultation.
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