Question
Show all of your steps and calculations.You must provide explanations for the decisions you make.You should refer to the legislation in support of your choices,
Show all of your steps and calculations.You must provide explanations for the decisions you make.You should refer to the legislation in support of your choices, where appropriate. (10 marks)
Question
Aisha and Abraham have been married for 15 years.They have just separated.Using the following facts,
a.Calculate the net family property of each spouse.
b.Calculate the equalization payment and who will be making it.
Abraham's financial situation:
At the date of marriage
No assets
Had a student loan worth $100,000.00
During the marriage
Lived in the matrimonial home
Inherited IBM stock from his sister worth $100,000.00
In her will, his sister left instructions that the income from the IBM stock was not to be inherited
He also inherited a cottage from his sister, valued at $175,000.00.The will indicated that he was not to share any income that the cottage generated.He and his wife resided in the cottage every summer until they separated
Valuation Date
The IBM stock is worth $180,000.00
The stock has produced dividends of $25,000.00
The cottage is worth $250,000.00
Aisha's Financial Situation
At the date of marriage
Owns a house worth $290,000.00.There is no mortgage on the house
Owns a car worth $8,000.00
Owns bonds worth $15,000.00
She does not have any debt
During the marriage
She and Abraham live in the house until they separate
She wins a lottery worth $250,000.00, which she deposits into a new savings account
She inherits a rental property worth $310,000.00 from her mother.The will is silent on the income the rental property generates.
Valuation date
She still lives in the house, which is now valued at $500,000.00
She continues to have the funds from her lottery winnings in a separate bank account.The bank account has appreciated in value to $290,000.00
She continues to own the rental property which is now worth $420,000.00
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