Assets are a big area of concern when a couple is thinking about separating.  Some individuals even think that they are automatically entitled to half of the marital assets.

Property and assets are not physically split in Ontario. Rather what happens is that the net value of all property and assets owned by each spouse is calculated in accordance with a specific method set out by the Family Law Act.  Then, typically, a money adjustment, known as an “equalization payment”, is paid by the spouse with the higher net value of property and assets to the spouse with the lower value.  The idea is to “equalize” your spouse’s net worth upon separation so that it is equal to your own.

It is only the increase of the net value of your assets during your marriage that is equalized.  Subject to certain specified exclusions and one exception, the increase is determined by calculating your assets, less liabilities, on the date of separation and subtracting the value of your assets, less liabilities, on the date of marriage.  Look at it as if you were business partners that agreed to share the net proceeds from the sale of your business equally after you each received the amount of money you initially invested in the business upon startup.

Once you and your spouse’s net worth is determined, the spouse with the greater net worth will pay one-half of the difference to the spouse with the lesser net worth so that both spouses are left with the same value of property.

For example, if on the date of separation, after factoring in all the deductions and exclusions allowed for by the Family Law Act, you have a net worth of $100,000.00 and your wife has a net worth of $50,000.00, you will need to pay to your wife or give her assets worth $25,000.00 so that you both end up with a net worth of $75,000.00.

For more information about the separation of marital assets please visit MyOntarioDivorce.com or BermanBarristers.com.

Sincerely,

Robert Berman B.C.L, LL.B
Founder & Family Law Lawyer

It’s no secret that marriage takes work – including patience and a transport-trailer full of understanding. While expectations regarding marriage have skyrocketed, a new report indicates that the divorce rate has dropped in Canada by six percent during the past four years. Here’s what we can learn about marriage from Canadian couples.

A report released in May 2010 by the Canadian Centre for Justice Statistics tracked the divorce rate in Canadian provinces and studied about 66 percent of the population. The report concluded that the divorce rate is in decline, and of those divorces that do take place, only about three percent go to trial. Most are uncontested and end in about two years from the time that one of the partners files the legal papers.

Divorce rates in Canada and in the US

We are used to hearing about the high rates of divorce. Maybe there’s something that Canadians are doing that keeps them together longer.

According to the study, the decline in divorces actually started in the 1990s. The peak for divorce in Canada was in 1987 at about 362 cases in a population of 100,000. In 2005, the divorce rate was 221 cases in a population of 100,000. The average marriage that ended in divorce in 2005 lasted 14.5 years, or 1.7 years longer than a marriage in the 1990s. The bottom line? Currently about one-third of all Canadian marriages end in divorce.

As for divorce rates in the US, the most recent statistics put it at less than half, but still a higher rate than the Canadians, at about 44 percent.

When questioned about divorce, or rather trying to avoid divorce, couples with children reported that they were willing to try all avenues of support before divorce. It is also a fact that there are many more support systems in place for couples who are struggling with their marriage than in the past.

Children of divorce more open to talking about it

With divorce rates at their peak in the 1980s, children of divorce became more accepted and were able to be more open with their feelings than previous generations. This trend has continued and, when asked about marriage and divorce, children of divorced parents have some surprisingly strong opinions. Rather than a lax attitude toward divorce, many disapprove of divorce and a full 88 percent of teens whose parents divorced expect to stay married to the same partner for life.

When it comes to relating to their parents, children also tend to relate to the parent who was blindsided by the divorce.  After all, it’s both the parent who is left and the children, who begin working through the process at the same time.

Are Canadians doing anything different when it comes to marriage?

While the lower divorce rate in Canada seems very positive on paper, the devil may be lurking in the details.

The other side of the Canadian study is that marriage itself is also on the decline. Numbers from the 2006 Canadian census indicated that 69 percent of families were comprised of married couples – that’s down from 80 percent in the 1980s. This is also the X-factor here. The break-up of cohabitating couples is not captured in the recent round of census information, so it is possible that the rate of separation may actually be high among unmarried couples.

This trend will need to be further examined as common law, or cohabitating couples, become more the norm in society.

Fight for your marriage

Regardless of the trends, divorce can be one of the most significant traumas in life and it can become even more complex when children are involved. Often couples go straight to the lawyers, then to the courts, but one of the crucial parts of the divorce process is counseling. There are support groups, therapists and outreach programs to help with the healing process. Do what you can to sincerely work on your marriage before seeking divorce as the only alternative.

Sincerely,

Robert Berman B.C.L, LL.B
Founder & Family Law Lawyer

Source

Separation and divorce are difficult for all parties involved and if you are thinking of initiating that discussion, it can be even more stressful. Chances are if you have reached this point, communications are already strained and your partner may not be open to such a discussion.

The best approach is an informed approach. Research your options. Consult with professionals such as a family lawyer first. Many family law lawyers operate traditional practices where you go to the office, pay for a consultation and retain their services. As an economical alternative, consider seeking advice from a firm that offers lawyer assisted divorce coaching to develop a plan that will protect your interests and approach the subject with your partner in a non-threatening manner.

Just because you are considering a separation or divorce, you don’t have to retain a lawyer that is eager to pursue legal action. Often the only people that benefit from legal aggression are the lawyers. Firms that offer divorce coaching can answer your questions and advise you on how you can navigate this very difficult process without retaining a traditional lawyer. They will also be ready to represent you if the issues cannot be resolved without using the court.

With the right advice, you will be more prepared to approach your spouse with more confidence and have strategies to focus on reaching an amicable agreement. The result could be a mutually beneficial separation or uncontested divorce agreement that saves you, your spouse, your children and your wallet the destruction that accompanies a nasty divorce.

If a resolution cannot be met, you have done your research and you have established a relationship with strong legal counsel that can protect your interests.

For more information about how to approach your spouse about a separation or divorce please visit www.myontariodivorce.com or www.bermanbarristers.com

Sincerely,

Robert Berman B.C.L, LL.B
Founder & Family Law Lawyer

If you are thinking of getting married, you may or may not have started to think about a pre-nuptial agreement. Whether you currently have something to protect or not, a pre-nuptial agreement is always a good idea.

A pre-nuptial agreement enables couples to enter a marriage with a clear understanding of the expectations during the marriage and in the event the marriage ends. It protects both spouses and should be developed together.

Inviting your spouse to participate in the development of an agreement will help them understand your position and you theirs. Consider a situation where one or both spouses have children from past unions who want to protect assets for their children, or a business owner who has responsibilities to employees and investors.

A pre-nuptial agreement can protect those interests. In the long run, if the union ends, you can avoid ill will and emotional disputes over property because your prenuptial agreement will have set out how those matters will be divided.

You should consult a lawyer to make sure that you address all the issues that need to be included in your agreement. You can also use internet services where you can ask a family law lawyer a legal question online. You can also create your pre-nuptial agreement online or with the assistance of a family law lawyer. If you create your pre-nuptial agreement online, make sure you each get independent legal advice before you sign it.

For more information about pre-nuptial agreements please visit www.myontariodivorce.com or www.bermanbarristers.com.

Sincerely,

Robert Berman B.C.L, LL.B
Founder & Family Law Lawyer