Understanding Your Financial Picture During Separation
Not sure how to determine the true value of your assets and debts during a separation or divorce? You’re not alone. This process, known as equalization, helps ensure a fair division of net family property.
Before you begin, keep two important rules in mind:
- Use the right dates: You’ll need financial documentation from the date of marriage and the date of separation.
- Use fair market value: Do not use the original purchase price or replacement value. Always use what the asset is currently worth on the open market.
Here Are 10 Ways to Value Your Assets and Debts
1
Bank Accounts, RRSPs, Loans, and Credit Cards
Collect statements that clearly show account balances on both the date of marriage and the date of separation. This includes:
- Bank accounts
- Registered retirement savings plans (RRSPs)
- Mortgages and lines of credit
- Credit card balances
- Car loans or other secured debts
2
Vehicles
To find the fair market value of a vehicle:
- Request an appraisal from a dealership
- Look up the “black book” value (available online or at your local library)
- Record the year, make, model, and mileage accurately
3
Household Contents
Use garage sale value as your guide. This is what the item would reasonably sell for secondhand. If there's a dispute, we can arrange for an auctioneer to conduct an in-home appraisal.
4
Real Estate (Family Home or Other Properties)
Get an official appraisal to determine fair market value. Options include:
- A real estate agent’s opinion (less expensive, less persuasive)
- A certified appraiser’s report (more persuasive in legal matters)
5
Privately Owned Businesses
These can be complex to value and usually require a Certified Business Valuator. Depending on the business structure, size, and complexity, expect to spend $7,000 to $12,000 or more.
6
Publicly Traded Stocks and Bonds
The value is based on the closing price on the relevant date. Use official records or brokerage statements to confirm the amounts.
7
Pensions
Pensions are usually valued by the pension administrator, but the process can involve completing multiple forms. If your pension is under a federally regulated plan (such as Air Canada or CP Rail), an actuary may need to provide the valuation.
8
Stock Options
These are complex to evaluate and often require expert analysis. We have professional connections in Toronto who specialize in stock option appraisals and can assist.
9
Life Insurance (Whole Life Policies)
Ask your insurance agent to provide a statement of the cash surrender value. This is the amount available if the policy were cancelled today.
10
Finalizing Your Divorce? Priceless.
While determining value can be a technical process, it is essential to ensure fairness and transparency. You can keep legal fees manageable by gathering documentation yourself.
How We Can Help
- Our law clerks can help you organize and collect financial documents
- Our lawyers have strong relationships with trusted appraisers and valuation experts
- We help keep costs down while ensuring full legal disclosure is met
- We understand the process and will walk you through every step
We’re here to make sure you are informed, prepared, and confident in your financial disclosure. Whether you are preparing for negotiation, mediation, or the Collaborative Process, we will support you in building a clear and complete financial picture.