Dividing Family Property

How is property divided upon separation?

Basically, the increase in value of a couple's assets during marriage is divided equally between the parties. Note: It is not the assets that are divided, but the value of the assets. The specific rules are quite complex, as you will see below.

What is my 'net family property'?

The starting point in calculating how to divide property is for each party to calculate his or her "net family property." A person's net family property is calculated as follows:

• Calculate the value of all of your assets on your date of separation.
• Deduct the value of all of your liabilities on your date of separation.
• Deduct the value of all of the assets you had on your date of marriage.
• In certain cases, deduct other items, such as life insurance proceeds, gifts from third parties, inheritances and personal injury awards (this is discussed further below).
• Add the value of all of your liabilities on your date of marriage.

This is your Net Family Property.