What to Do When the Net Family Property Doesn't Accurate Represent the Truth
Posted on July 24, 2024
In Ontario, the division of assets for married spouses is governed by the Family Law Act. The goal is to ensure a fair distribution of property acquired during the marriage. The process involves calculating each spouse's Net Family Property (NFP), which is the spouse with the higher NFP typically paying an equalization payment to the other spouse, ensuring both leave the marriage with an equitable share of the assets. To learn more about how to navigate the division of assets as it related to the NFP, book a legal consultation with our trusted family lawyers and civil lawyers at Karrass Law.
What is the Division of Assets and Why It Matters
The Family Law Act guides and governs the division of assets for spouses in Ontario. The act is designed to fairly divide property and other assets or debts acquired over the course of the marriage. Generally, this division of assets is determined by each person's Net Family Property (NFP), which is the total value of assets acquired during the marriage minus any debts and liabilities. Whichever spouse has the higher NFP will typically pay in equalization to the other spouse to allow for an even split of assets acquired during a marriage.
What to Do If Assets Shouldn't Be Split Evenly
While this is how the division of assets is expected to go, many cases or situations can complicate this process. If you're concerned that your NFP or your spouse's NFP is not accurate and it is affecting how much you're being left with at the end of the relationship, it's essential that you seek representation from a family lawyer near you. For complex division of assets, Karrass Law is trusted. Robert Karrass and our team of family lawyers are also practicing civil litigation lawyers, enabling us to better understand the situation from all angles and allowing us to provide you with a strong legal strategy that leaves you with what you're rightfully owed.
Factors That Complicate Division of Assets
If the NFP does not accurately represent yours or your spouse's financial situation, due to one of the following reasons, contact Robert Karrass and our civil litigation lawyers to help you protect your best interests.
- Hidden Assets & Misrepresented Income: One common issue encountered during the calculation of the NFP is hidden assets. One spouse may attempt to hide assets and ultimately reduce their equalization payment. Similarly, one spouse may alter their financial statements to underreport or misrepresent how much money they are actually bringing in, which results in an uneven distribution of assets by skewing the NFP calculations. This can be addressed through forensic accounting and thorough legal investigation with a civil litigation lawyer who also specializes in family law.
- Matrimonial Home: The matrimonial home holds a special status when compared to other assets. The matrimonial home is always included in the equalization process, regardless of which spouse's name is on the title. Deciding who stays in the home can be a complex issue, often requiring expert legal intervention.
- Business Interests: If you or your spouse own a business, valuing the business can be challenging, especially if it is a family business. The ongoing income and future potential of the business must be considered during the division of assets.
- Pensions and Retirement Accounts: These are often substantial assets that need to be carefully evaluated and divided. Different rules may apply depending on the type of pension or retirement account.
- Debts and Liabilities: Not only assets but also debts and liabilities accumulated during the marriage need to be considered. This includes mortgages, credit card debts, and other loans.
Legal Representation for Division of Assets with Karrass Law
If you are calculating and facing complexities like hidden assets or a family business, contact Karrass Law. Our family lawyers are also civil litigation lawyers, which gives you the insight and expertise of two specialties in one experienced lawyer. To ensure you get what you're rightfully owed in the event of a separation or divorce, contact our experts at Karrass Law.