How is property divided on marriage breakdown?
When a marriage breaks down, the property must be divided between the spouses. The family law act requires that each spouse prepare a list of all assets and liabilities. The act provides that the value of all property gathered during the marriage partnership is to be shared equally between the spouses on marriage breakdown. Often the most valuable assets are the matrimonial home and any pensions. When the value of all your assets and liabilities and all your spouse’s assets and liabilities have been determined, a spouse then subtracts the value of the property that he or she brought into the marriage to determine the “equalization amount”, the value that remains. The spouses’ “equalization amounts” are compared to determine a fair division of the assets of the marriage. Normally the main assets are the house and the pension. An improper valuation of the pension can end up changing the “equalization amount” and changing the division of assets by thousands of dollars.
