Bruno and Elzbieta have just separated. Using the following facts,

(a) Calculate the net family property of each spouse.

(b) Calculate the equalization payment, and indicate who will be making it.

(c) Provide a written explanation for each of your choices.

Bruno’s financial situation:

At the date of the marriage

• Owned a house worth $400,000, mortgage-free
• Owned a rental property worth $200,000, subject to a $100,000 mortgage
• Had a boat worth $20,000
• Had savings of $10,000

During the marriage

• Received $30,000 as damages from a workplace accident in which he was injured. He used the $30,000 to purchase shares in Apple Inc.

 

At the date of separation

• Continues to own the same house he owned at marriage. (Bruno and Elzbieta lived in the house during the marriage until separation). The house is now worth $550,000
• Owns the rental property now worth $350,000 and now mortgage-free
• Owns a car worth $40,000
• Owns shares in Apple Inc. now worth $50,000
• Has joint savings account with Elzbieta with a balance of $30,000

Elzbieta’s financial situation

 

At the date of the marriage

• Owned a rare book collection worth $25,000 at the time of the marriage, which she had inherited from her mother prior to the marriage
• Had savings of $75,000

During the marriage

• Inherited a cottage property in Ontario from her brother worth $160,000 at the time of the inheritance; the will was silent about any income earned from the cottage
• Inherited a stock portfolio from her brother worth $440,000 at the time of the inheritance; the will said that no income from the property is to be part of an NFP calculation

At the date of separation

• Owns the rare book collection, now worth $50,000
• Owns the cottage now worth $250,000 (Bruno and Elzbieta lived at the cottage every summer until the separation.)
• Owns a car worth $35,000
• Owns the stock portfolio now worth $500,000
• Has joint savings account with Bruno with a balance of $30,000

Show all of your steps and calculations. You must also provide explanations for decisions you make in the process of your calculations. Your answer should be in paragraph form (not in bullet form). You should refer to legislation in support of your choices, where appropriate.

Answer rating: 100% (QA)

Bruno Vs Elzbieta Separation and Equalization payment calculations BRUNO ELZBIETA At marriage Ow... View the full answer