Gary and Irene separated February 15, 2021.   Gary has come to you for assistance in determining how their assets and debts will be divided.

Gary and Irene have decided to sell the matrimonial home and will split the proceeds from the sale equally.  Gary asks you to determine the penalty for breaking the mortgage before the end of the term.  He has provided the following details from the mortgage documents:

• Interest rate:  2.5% per year.
• Penalty if mortgage is paid off before the end of the term:  interest amount for the next six months.

Information from April 1, 2021 mortgage statement:  

• Current mortgage balance is $517,456.78.
• 276 months remaining.
• Monthly payment:  $2,463.81.

The following is a list of their other assets and debts:

Asset / Debt	Value at date of marriage June 5, 2004	Value at date of separation
Joint bank account	Each put $2,000 in their joint bank account	$11,000
Gary’s Car	Purchased during marriage	$8,000
Irene’s Car	Purchased during marriage	$15,000
Gary’s Non-registered Investment Account	See Note 1 below	$245,000
Gary’s RRSP	$5,000	$125,000
Gary’s TFSA	First contribution in 2011	$60,000
Irene’s RRSP	$30,000	$200,000
Irene’s TFSA	First contribution in 2013	$40,000
Gary’s credit card balance	Credit card received 8 years ago	$(12,000)
Irene’s Car Loan	Purchased during marriage	$(9,000)

Note 1:  Five years ago, Gary inherited $225,000 from his Mom when she died.   Gary used $15,000 to lower their credit card balances and $40,000 was used to take the family on an extended vacation.  

Gary opened a Non-registered Investment Account and moved the remaining funds of $170,000 to this account.  Gary has not added any other funds to the Non-registered Investment Account and has sole direction over the investment decisions and withdrawal amounts for this account.  

Required

1. Estimate the penalty for breaking the mortgage using the April 1, 2021 statement details and mortgage document information provided. 
2. Calculate how much Gary and Irene will each get using property division under Ontario law.