James and Elle have just separated. Using the following facts,

(a) Calculate the net family property of each spouse.

(b) Calculate the equalization payment, and indicate who will be making it.

(c) Provide a written explanation for each of your choices.

Jamess financial situation:

At the date of the marriage

• Owned a house worth $400,000, mortgage-free
• Owned a rental property worth $200,000, subject to a $100,000 mortgage
• Had a boat worth $20,000
• Had savings of $10,000

During the marriage

• Received $30,000 as damages from a workplace accident in which he was injured. He used the $30,000 to purchase shares in Apple Inc.

At the date of separation

• Continues to own the same house he owned at marriage. (James and Elle lived in the house during the marriage until separation). The house is now worth $550,000
• Owns the rental property now worth $350,000 and now mortgage-free
• Owns a car worth $40,000
• Owns shares in Apple Inc. now worth $50,000
• Has a joint savings account with Elle with a balance of $30,000

Elles financial situation

At the date of the marriage

• Owned a rare book collection worth $25,000 at the time of the of the marriage, which she had inherited from her mother prior to the marriage
• Had savings of $75,000

During the marriage

• Inherited a cottage property in Ontario from her brother worth $160,000 at the time of the inheritance; the will was silent about any income earned from the cottage
• Inherited a stock portfolio from her brother worth $440,000 at the time of the inheritance; the will said that no income from the property is to be part of an NFP calculation

At the date of separation

• Owns the rare book collection, now worth $50,000
• Owns the cottage now worth $250,000 (James and Elle lived at the cottage every summer until the separation.)
• Owns a car worth $35,000
• Owns the stock portfolio now worth $500,000
• Has a joint savings account with James with a balance of $30,000