What is the value of the marital property? a) $345,400 b) $340,400 c) $388,400 d) $383,400 2. Based on Bob's offer, how much of the marital property would Cindy receive? a) 41% b) 50% c) 44% d) 54% 3 5. Let's say the judge wishes to create a 50/50 split of Bob and Cindy's assets. Based on Bob's proposed split of the assets, who would have to pay an equalization payment and how much would it be? a) Bob would pay Cindy $61,600. b) No equalization payment would be necessary to create a 50/50 split. c) Bob would pay Cindy $9,300. d) Bob would pay Cindy $30,800. What amount is used for the value of the art collection in the equalization process? a) So b) $43,000 c) $21,500 d) None of the above Which of the following about the marital debt is true? a) Both C and D b) Bob has no liability for the American Express card because he didn't know about it and didn't make the charges himself. c) Bob and Cindy are equally responsible for all of the debt. d) The judge could decide to punish Cindy for hiding joint debt by transferring all debt liability to her in the separation agreement. Based on Bob's offer, what will be Cindy's main source of net worth? a) Excluded property b) The marital home c) The rental home d) Her RRSPS Based on the case facts, who should be required to take out life insurance? a) Cindy b) Bob c) Both Cindy and Bob d) None of the above 34. 6. 7 Bob (age 33) and Cindy (age 32) have been married for 12 years and are getting divorced. They have two children, Nicole (age 9) and Chad (age 5). Bob started his own business three years ago and he thinks the tax-adjusted value is $201.000. He argues that the business is new and its value cannot be counted on, so it should not be divided. Bob's annual salary is $87,000. His expenses are $2,050 per month. This does not include any credit card or support payments. Cindy is going back to school to become a nurse. She will finish her degree in three years, and then she will earn approximately $35,000 per year. She will earn no income while in school. Cindy's expenses are $4,828 per month. This includes her tuition expenses, which average $350 per month. Bob is offering to help Cindy through school by paying spousal support of $2,000 per month for one year, then $1,500 per month for two additional years. The support will be indexed annually. The children will live with Cindy. According to the Federal Child Support Guidelines, Bob's payments will be $1,245 per month to support the two children until they finish school or reach the age of majority. This number will drop to $774 per month (adjusted for the 3% growth rate) after the oldest child leaves home or school. They live in a province where the age of majority is 19 years. The family residence is valued at $220,000 with a mortgage of $130,000 at 7.5% interest for 15 years. Cindy would like to remain in the home with the children. They also have a rental house worth $160,000 with a mortgage of $100,000. They receive $1,200 per month in rental income, and the monthly expenses are approximately $1,200 per month. Cindy's has two RRSPs with a tax-adjusted value of $17,000. She also inherited a family art collection about a year ago. The collection is valued at $43,000. Bob and Cindy have a joint Visa credit card that they both use with a balance of approximately $22,600. Without Bob's knowledge, Cindy also opened another joint American Express credit card with a balance of approximately $5,000. Bob has made the following proposal: Cindy will take the house, the rental, the RRSPs, her art collection, and the debt. Bob will keep only his business. Bob feels that since his business is so new and cannot be counted on, he is making a very generous proposal. Assume they will each retire at age 6s--the age at which they will qualify for full OAS benefits- and that Bob will be splitting his CPP with Cindy Bob (age 33) and Cindy (age 32) have been married for 12 years and are getting divorced. They have two children, Nicole (age 9) and Chad (age 5). Bob started his own business three years ago and he thinks the tax-adjusted value is $201,000. He argues that the business is new and its value cannot be counted on, so it should not be divided. Bob's annual salary is $87,000. His expenses are $2,050 per month. This does not include any credit card or support payments. Cindy is going back to school to become a nurse. She will finish her degree in three years, and then she will earn approximately $35,000 per year. She will earn no income while in school. Cindy's expenses are $4,828 per month. This includes her tuition expenses, which average $350 per month. Bob is offering to help Cindy through school by paying spousal support of $2,000 per month for one year, then $1,500 per month for two additional years. The support will be indexed annually. The children will live with Cindy. According to the Federal Child Support Guidelines, Bob's payments will be $1,245 per month to support the two children until they finish school or reach the age of majority. This number will drop to $774 per month (adjusted for the 3% growth rate) after the oldest child leaves home or school. They live in a province where the age of majority is 19 years. The family residence is valued at $220,000 with a mortgage of $130,000 at 7.5% interest for 15 years. Cindy would like to remain in the home with the children. They also have a rental house worth $160,000 with a mortgage of $100,000. They receive $1,200 per month in rental income, and the monthly expenses are approximately $1,200 per month. Cindy's has two RRSPs with a tax-adjusted value of $17,000. She also inherited a family art collection about a year ago. The collection is valued at $43,000 Bob and Cindy have a joint Visa credit card that they both use with a balance of approximately $22,600. Without Bob's knowledge, Cindy also opened another joint American Express credit card with a balance of approximately $5,000. Bob has made the following proposal: Cindy will take the house, the rental, the RRSPs, her art collection, and the debt. Bob will keep only his business. Bob feels that since his business is 50 new and cannot be counted on, he is making a very generous proposal. Assume they will each retire at age 65-the age at which they will qualify for full OAS benefits- and that Bob will be splitting his CPP with Cindy. What is the value of the marital property? a) $345,400 b) $340,400 c) $388,400 d) $383,400 2. Based on Bob's offer, how much of the marital property would Cindy receive? a) 41% b) 50% c) 44% d) 54% 3 5. Let's say the judge wishes to create a 50/50 split of Bob and Cindy's assets. Based on Bob's proposed split of the assets, who would have to pay an equalization payment and how much would it be? a) Bob would pay Cindy $61,600. b) No equalization payment would be necessary to create a 50/50 split. c) Bob would pay Cindy $9,300. d) Bob would pay Cindy $30,800. What amount is used for the value of the art collection in the equalization process? a) So b) $43,000 c) $21,500 d) None of the above Which of the following about the marital debt is true? a) Both C and D b) Bob has no liability for the American Express card because he didn't know about it and didn't make the charges himself. c) Bob and Cindy are equally responsible for all of the debt. d) The judge could decide to punish Cindy for hiding joint debt by transferring all debt liability to her in the separation agreement. Based on Bob's offer, what will be Cindy's main source of net worth? a) Excluded property b) The marital home c) The rental home d) Her RRSPS Based on the case facts, who should be required to take out life insurance? a) Cindy b) Bob c) Both Cindy and Bob d) None of the above 34. 6. 7 Bob (age 33) and Cindy (age 32) have been married for 12 years and are getting divorced. They have two children, Nicole (age 9) and Chad (age 5). Bob started his own business three years ago and he thinks the tax-adjusted value is $201.000. He argues that the business is new and its value cannot be counted on, so it should not be divided. Bob's annual salary is $87,000. His expenses are $2,050 per month. This does not include any credit card or support payments. Cindy is going back to school to become a nurse. She will finish her degree in three years, and then she will earn approximately $35,000 per year. She will earn no income while in school. Cindy's expenses are $4,828 per month. This includes her tuition expenses, which average $350 per month. Bob is offering to help Cindy through school by paying spousal support of $2,000 per month for one year, then $1,500 per month for two additional years. The support will be indexed annually. The children will live with Cindy. According to the Federal Child Support Guidelines, Bob's payments will be $1,245 per month to support the two children until they finish school or reach the age of majority. This number will drop to $774 per month (adjusted for the 3% growth rate) after the oldest child leaves home or school. They live in a province where the age of majority is 19 years. The family residence is valued at $220,000 with a mortgage of $130,000 at 7.5% interest for 15 years. Cindy would like to remain in the home with the children. They also have a rental house worth $160,000 with a mortgage of $100,000. They receive $1,200 per month in rental income, and the monthly expenses are approximately $1,200 per month. Cindy's has two RRSPs with a tax-adjusted value of $17,000. She also inherited a family art collection about a year ago. The collection is valued at $43,000. Bob and Cindy have a joint Visa credit card that they both use with a balance of approximately $22,600. Without Bob's knowledge, Cindy also opened another joint American Express credit card with a balance of approximately $5,000. Bob has made the following proposal: Cindy will take the house, the rental, the RRSPs, her art collection, and the debt. Bob will keep only his business. Bob feels that since his business is so new and cannot be counted on, he is making a very generous proposal. Assume they will each retire at age 6s--the age at which they will qualify for full OAS benefits- and that Bob will be splitting his CPP with Cindy Bob (age 33) and Cindy (age 32) have been married for 12 years and are getting divorced. They have two children, Nicole (age 9) and Chad (age 5). Bob started his own business three years ago and he thinks the tax-adjusted value is $201,000. He argues that the business is new and its value cannot be counted on, so it should not be divided. Bob's annual salary is $87,000. His expenses are $2,050 per month. This does not include any credit card or support payments. Cindy is going back to school to become a nurse. She will finish her degree in three years, and then she will earn approximately $35,000 per year. She will earn no income while in school. Cindy's expenses are $4,828 per month. This includes her tuition expenses, which average $350 per month. Bob is offering to help Cindy through school by paying spousal support of $2,000 per month for one year, then $1,500 per month for two additional years. The support will be indexed annually. The children will live with Cindy. According to the Federal Child Support Guidelines, Bob's payments will be $1,245 per month to support the two children until they finish school or reach the age of majority. This number will drop to $774 per month (adjusted for the 3% growth rate) after the oldest child leaves home or school. They live in a province where the age of majority is 19 years. The family residence is valued at $220,000 with a mortgage of $130,000 at 7.5% interest for 15 years. Cindy would like to remain in the home with the children. They also have a rental house worth $160,000 with a mortgage of $100,000. They receive $1,200 per month in rental income, and the monthly expenses are approximately $1,200 per month. Cindy's has two RRSPs with a tax-adjusted value of $17,000. She also inherited a family art collection about a year ago. The collection is valued at $43,000 Bob and Cindy have a joint Visa credit card that they both use with a balance of approximately $22,600. Without Bob's knowledge, Cindy also opened another joint American Express credit card with a balance of approximately $5,000. Bob has made the following proposal: Cindy will take the house, the rental, the RRSPs, her art collection, and the debt. Bob will keep only his business. Bob feels that since his business is 50 new and cannot be counted on, he is making a very generous proposal. Assume they will each retire at age 65-the age at which they will qualify for full OAS benefits- and that Bob will be splitting his CPP with Cindy