Divorce: how to divide the debt?
Here are some general facts that you know about preparing for separating property during divorce. It is important to know that these rules only apply to legally married couples, not those who live in common law. Shared goods
In general, having property acquired during marriage (buildings, furniture, vehicles, etc.) will be shared equally, taking into account their net worth unless the agreement included in your spouses is different.
Property acquired individually before or during your marriage will be treated differently, depending on the arrangement and policies in your province. The same applies to debts contracted jointly or individually during marriage. It is therefore necessary to inform you about the details of the law on separation of property in your place of residence.
Valuation of property and debt
In order to share divorce, you first need to have a value property. For example, the apartment will be appreciated by real estate brokers by market value at the time of marriage divorce, taking into account supply and demand.
It is necessary to calculate and subtract the debt from each of them at the time of purchase, as well as maintenance and renewal costs and are deducted from the final amount.
The share of each repayment will also take into account their financial situation and the first contract between spouses under the laws of the province or area of residence. Future value
If possible, consider the future value of an asset when negotiating an agreement with a partner to divide the debt and assets as fairly as possible during the divorce. For example, if your spouse wants to return your share to a residential building, it is important to reasonably evaluate what the building will be worth and report in the years to come.
If you renounce a retirement or share in RRSP, do so consciously, estimating the increase in future value.
To make the best, make sure you have all the necessary documents in your hand:
Your tax return for the last five years;
Balance of pension accounts of each of them;
Check out the statues showing the income and tax deductions of each person in the past year;
A document describing the social benefits at work of each of the partners;
All your insurance policies;
statements of bank accounts of both spouses;
Statement of Investments, Purchase of Shares and Other Investments;
Decision on ownership of your home or rental of your home;
Mortgage Loan Statements and All Other Loans
credit card accounts;
Any other relevant document.