help please

DIVIDING THE VALUE OF PROPERTY 1. When it comes to dividing the value of property (both assets and debt) from a marriage, there are some special exceptions most insurance settlements, gifts from a third party, and inheritances are not shared - the owner gets it all and it is not a part of any further calculation). 2. The family home is also an exception: its value is always split (except in short, childless marriages) and neither person necessarily gets possession (see below). 3. The basic idea of division of property is that you will split the value of anything that changed during a legal marriage. The value you had entering the marriage is yours to keep, but changes will be split. For any item that was already owned by one party going into the marriage: your value = your value going into the marriage + change in value during the marriage For example, if you have a car that starts at a worth of $10,000 going into the marriage, you are entitled to $10,000 going out. But if the value of the car drops to $2,000 during the marriage, then the $8,000 is split and your share is -$4,000. You'll thus get $6,000 (10000 - 8000/2). For items bought during the marriage, the value going into the marriage is just zero, simplifying it. For any item bought during the marriage Each person gets half of the value at the time of separation. 2 There are some additional exceptions which we need not worty about here. For any item bought during the marriage: Each person gets half of the value at the time of separation. There are some additional exceptions which we need not worry about here. DIVIDING THE POSSESSION OF PROPERTY 4. Possession of property is handled separately. Just because you get half of the value, you don't necessarily get half of the possession. The basic rule is, if you bought it then you get it (ise, you have title). If it's not dear whose it is, then it is usually sold and the cash split. If the item was gifted to one spouse, then the recipient gets title. Possession of the family home is usually determined by custody of the children. If there are no children, then it goes according to title. THE EQUALIZATION PAYMENT 5. Unfortunately, it could be the case that one person bought everything and gets possession, while the other person is still entitled to half of the value. To fix this, the person who possesses too much value has to make an equalization payment in cash to settle the difference, so that both people walk away with the value that they're due. In other words, you add up all of the value that you're due, then subtract off the current value of everything that you get possession of. Whatever is left will be the equalization payment Use the above and/or the pamphlet "What You Should Know About Family Law In Ontario" at http://www.attomeygeneral jus.gov.on.calenglish/family/familyla.pdf (the section entitled "Dividing Your Property"). Calculate the division of property and equalization payment for this family. (Note: This division of property is about the net worth of property. Spousal and child support payments are about cash flow, and are decided separately.) Item Value in 2011 (or at purchase it bought later) Current Value Change in marriage Your Value Spouse's Value Purchaser/Owner, Date bought You, 2008 Spouse, 2012 Car 40000 20000 Car 12000 10000 Family Home You, 2009 100000 120000 Personal Debt You, 2005 (7000) (2000) (30000) Personal Debt (20000) Jewelry Spouse You (gift to your spouse), 2016 You, 2005 500 500 Pension 1000 40000 Artwork Spouse, 2015 1000 9000 Business 120000 Spouse, 2005 100000 2500 12000 Savings You, 2005 1000 700 Clothes You, 2014-now 2000 900 Clothes Spouse, 2013-now 7000 10000 Investments You, 2005 1000 2000 Investments Joint, 2012 70000 Inheritance 90000 Spouse, 2013 Total: Complete the table above by following the instructions on "DIVIDING THE VALUE OF THE PROPERTY". (In the next lab we will examine possession of the property and the equalization payment.)