How the Courts Decide on Asset Allocations During a Divorce

If you and your spouse can’t mutually agree on division of property, the judge will consider a number of factors to determine a fair division of property. Although each province may have their own factors, the judges are also given freedom to consider anything that seems reasonable to the situation. Because the judge is given the power to make his own determinations in asset division this is why it’s crucial that you have a Divorce Lawyer Toronto work with you in deciding how to best approach these issues. Your Toronto Divorce lawyer will work in your interest so it’s crucial that the correct information is offered to for him/her. The most important issues involving a divorce are asset division and custody of the children involved, and the judge will attempt to make the best arrangement for this situation, while your divorce lawyer’s goal is to make sure you get the proper allocation of assets and visitation or custody of the children involved.

When you and your spouse own an equal amount of assets and have similar earning capabilities, it’s easier to split the assets and decide if alimony payments are needed. However, if one of you could come away from the marriage much worse off then the other the judge tries to even things out. One of the biggest factors the judge uses to in how to even things out is the length of marriage, the longer the marriage the greater the argument for equal division of assets, which will leave the lower earning spouse in greater parity. In a shorter marriage the higher earner will probably have to give away less of a share.

Asset divisions are similar to decisions on spousal support; because it’s a similar issue both relating to how assets should be distributed so both can live in the same manner after the divorce. The judge takes into account both spouses health, job histories, age, if they need retraining to perform their job and their potential earning capacity.

The courts will also consider any significant separate assets such as an inheritance, stock options etc… The judge will also look to see if a spouse has purposely sold assets off at a discount or squandered any money, and they will take this into account to even out the asset division process.

Other factors the judge could consider are

• How much time the children will spend with each parent and the needs of the children
• Contributions that a spouse made in the other’s training, education or career advancements. For example if one spouse paid the tuition for the other to attend training or schooling.
• If one spouse gave up their career to be at home with the children
• The future potential of property values
• How liquid the assets are
• Tax consequences involved in the asset distribution process
• The debts of each spouse
• Is there a business involved, and how will the business be divided, should the other person be bought out

All these are complicated issues that require the resolve of an experienced Toronto Divorce Lawyer who understands the rules involved in all forms of asset division. It’s also a good idea to look at these factors on your own and discussing with your divorce lawyer how to best proceed, and not to hide any material or assets from your divorce lawyer which you think your spouse may not be aware of.