How to prepare financial statement
Property (Part 4)
- Note the dates set out in the financial statement:
- Date of Marriage,
- Valuation Date (most often the date of separation)
- Statement Date (the date the financial statement is being completed).
- Clarify each of these dates in the statement; ensure consistency with the pleading (Application or Answer, as the case may be).
- List only the property owned (as opposed to "used" or "possessed") by the client on the applicable dates.
- Show 50% interest and value for jointly-owned assets as “joint @50%”
- Note whether or not the joint tenancy for jointly-owned assets is intended to be severed.
- Use market value, not purchase price or replacement value.
Debts and Other Liabilities (Part 5)
- List only debts owed by client on the applicable dates.
- List one-half value
of the debts owed jointly as “joint @50%”
- Include contingent or future debts, such as deferred personal taxes, capital gains tax and costs of disposition.
- Consider appropriate discounts, e.g. net present value, minority share
- Include debts to parents, friends and other relatives.
4 Calculate property and debts at date of marriage (Part 6)
- List all property owned and debts owed on the date of marriage.
- Gather and compile in a disclosure brief the corresponding supporting documents / evidence.
- Note: A home owned on the date of marriage, which is a matrimonial home on the valuation date, does not entitle the owner to a "deduction" from net family property on the date of marriage. Any associated mortgage debt is omitted, too. [Review s. 5 of the Family Law Act ].
5 Calculate excluded property (Part 7)Source: www.lsuc.on.ca