Aisha and Abraham have been married for 15 years. They have just separated. Using the following facts,
Question:
Aisha and Abraham have been married for 15 years. They have just separated. Using the following facts,
a. Calculate the net family property of each spouse.
b. Calculate the equalization payment and who will be making it.
Abraham’s financial situation:
At the date of marriage
• No assets
• Had a student loan worth $100,000.00
During the marriage
• Lived in the matrimonial home
• Inherited IBM stock from his sister worth $100,000.00
• In her will, his sister left instructions that the income from the IBM stock was not to be inherited
• He also inherited a cottage from his sister, valued at $175,000.00. The will indicated that he was not to share any income that the cottage generated. He and his wife resided in the cottage every summer until they separated
Valuation Date
• The IBM stock is worth $180,000.00
• The stock has produced dividends of $25,000.00
• The cottage is worth $250,000.00
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson