Question 6 (10 marks)

Jun and Nancy were married eight years ago. On the day of marriage, each of them owned the following assets:

• Jun (under his name): a two-bedroom condominium in downtown Toronto valued at $350,000 with a mortgage balance of $230,000; a two-year old car valued at $18,000 with a car loan balance of $9,500 and monthly payment of $650, a stock portfolio inherited from his grandfather valued at $120,000, and personal assets valued at $3,000. His pension plan is valued at $13,000.
• Nancy (in her name): a one-bedroom condominium in Ajax, Ontario, valued at $120,000 with no mortgage, an 11-year old car with negligible market value, and personal assets of $5,000;
• They opened a joint account at the TD bank, where they deposited all their incomepaycheques, investment income, rental income etc.

They did not sign a marriage contract or pre-nup as they call it.

Jun works as a mechanic, making a take-home pay of $60,000 with good benefits and a pension plan. Nancy works as an executive assistant, with a take-home pay of $40,000. Nancy is covered under Juns benefit package, but she has no pension plan. They draw all their expenditures from the joint account. After they were married, they sold their respective condos and bought a new home with the combined proceeds (Jun contributing $110,000 and Nancy $120,000). They are quite frugal, and have been able to save up some money every year. They have been using the savings to contribute first to Nancys RRSP and then to their Tax Free Savings Accounts (TFSAs) Two years ago, Jun bought a lottery ticket and won $35,000, but he hid the money from Nancy, which she found out recently. They separated roughly eight months ago year ago and they will be divorced soon. At the time of separation:

• The house was valued at $550,000 with a mortgage balance of $200,000. T
• Jun has a stock portfolio was valued at $210,000; he also owns a new car bought recently for $30,000 with a car loan of $20,000, and about $42,000 in a secret bank account (his lottery winning with interest;
• Nancy RRSPs of had a total value of $45,000. She also car bought just a week before separation for $20,000.
• They had $4,000 in their joint account.
• Although Juns pension plan had a value of $103,000 on date of separation, he cannot touch the money until he retires.
• During the marriage, they have acquired some family assets such as furniture and paintings that were worth about $25,000 on date of separation.
• Individual personal assets were worth approximately $10,000
• Other than the mortgage and the car loan, they had one joint credit card with a $5,000 balance.
• They each have $11,500 in their TFSAs, invested in equity mutual funds.

Required:

How will their assets to be divided under the Family Law Act? Please show the amount of each asset that each will get and show your calculations. Identify any exclusions. To simplify the question, you may ignore taxes and transaction costs.