Personal Finance

What is your net worth?

  • Last Updated:
  • Jun 20th, 2017 12:40 pm
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Poll: What is your net worth?

  • Total votes: 194. You have voted on this poll.
$0 - $50,000
 
23
12%
$50,001 - $100,000
 
14
7%
$100,001 - $200,000
 
27
14%
$200,001 - $300,000
 
15
8%
$300,001 - $500,000
 
32
16%
$500,001 - $750,000
 
18
9%
$750,001 - $1,000,000
 
15
8%
$1,000,000 - $1,500,000
 
14
7%
$2,000,000 - $3,000,000
 
11
6%
$3,000,001 +
 
25
13%
Deal Addict
Feb 9, 2009
3941 posts
1647 upvotes
psudolam wrote:
Jun 16th, 2017 7:50 am
Nope, she may get an equalization payment, in addition to share of the matrimonial homes, at least in Ontario.

Property division for married couples

When a married couple separates, usually each spouse keeps their own property but they share any increase in the value of their property that happened during their marriage. Usually this means that one spouse must give the other spouse an "equalization payment".

Each spouse must calculate his or her "net family property" (NFP). To do this, each spouse adds up the value of his or her property (less any debts) on the date of separation and subtracts the value of his or her property (less any debts) on the date of marriage. The spouse with the higher NFP then pays the other spouse half of the difference. This is the equalization payment.

Special rule for matrimonial homes:

A "matrimonial home" is a home where a married couple had been living together just before they separated. There can be more than one matrimonial home, for example, a cottage could be included.

When calculating a spouse's NFP, the value of his or her property on the date of marriage does not include any home that is a matrimonial home on the date of separation. This means if the same spouse still owns the home on the date of separation, his or her NFP will include the home's total value, not just its change in value during the marriage.

Special rule for gifts and inheritances:

Any gift or inheritance that a spouse received during the marriage is not usually included in their NFP calculation. But if the gift or inheritance was used to buy or help pay for a matrimonial home, it is included.

Special rule for Canada Pension Plan credits:
These credits are not included in the NFP calculation because they are divided separately.
http://www.cleo.on.ca/en/publications/p ... ed-couples

These automatic property sharing provisions only apply to married spouses. If you are in a common law relationship, you are not entitled to an equalization payment, but may be entitled to a payment from your spouse to pay you back for a direct or indirect contribution to property that he or she owns. These claims are referred to as trust claims.
https://www.attorneygeneral.jus.gov.on. ... _property/
That's exactly what I'm saying ... any assets brought into a marriage is generally not included if you can prove you brought the asset into the marriage...only assets purchased during marriage and accumulation of interest/dividends/work pensions etc are divided... if you owned a house before marriage it's best to get a prenup.

Also judges will look how long were you married for spousal support and if you have a child ... you will never be able to wiggle out of child support payments regardless of marriage or not but spousal support is on the basis of length of marriage and if you have kids.
Deal Addict
Apr 19, 2010
1385 posts
370 upvotes
skunkyjosh wrote:
Jun 16th, 2017 11:24 am
Rich people on RFD. Can I get a loan at 5% fixed rate please?
I'd be lend you money at a 5% fixed rate.
Deal Expert
User avatar
Jan 27, 2004
36152 posts
2269 upvotes
Toronto
kanewtz wrote:
Jun 17th, 2017 8:37 am

I'd be lend you money at a 5% fixed rate.
skunkyjosh wrote:
Jun 16th, 2017 11:24 am
Rich people on RFD. Can I get a loan at 5% fixed rate please?
Don't be cheap... send me a pm. I can offer you a $100k/yr job at my multi national corporation.
There is a $50k sign on bonus which should hold you off until your first pay check.

Please see me if you have any problems with h.r. Suzanne can be a biotch sometimes.

Anyway... i'm heading to my cottage in musoka. Lemme know if you want to join. You can use the pool house.
The helicopter leaves at 3pm.
Last edited by UrbanPoet on Jun 17th, 2017 12:31 pm, edited 1 time in total.
Deal Guru
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Aug 8, 2012
10111 posts
3713 upvotes
BC
bewiseman wrote:
Jun 16th, 2017 11:14 am
I don't think that is correct. Your spouse is not legally required to pay your debts secured before you were married. However, any debt and any asset, accumulated by either partner during the marriage, is divisible. In fact, it really isn't particularly logical to say that, yes, you must divide 50/50 assets that YOU created, but any debt YOU accumulate in the marriage is only YOUR responsibility
The law in Canada disagrees with you.

One spouse can go bankrupt and the other not.

Spouse only liable for joint debt. Legally, officially "joint" debt.
POLL: How frequent is your RRSP-matching?
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Deal Guru
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Aug 8, 2012
10111 posts
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BC
bewiseman wrote:
Jun 16th, 2017 11:28 am
Nothing to "admit" or be ashamed of. 15K at 24 after spending 6 years in university, is really good. Many are at about -40K because of student loans.
Nobody in this survey is at -40k though ;)
POLL: How frequent is your RRSP-matching?
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Deal Addict
Jul 18, 2016
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ace604 wrote:
Jun 17th, 2017 12:32 pm
The law in Canada disagrees with you.

One spouse can go bankrupt and the other not.

Spouse only liable for joint debt. Legally, officially "joint" debt.
The law is "forked"! :) :)

Stay at home mom. No income. Dad, pays for everything and qualifies for credit based on his income. Accumulates debt in his effort to support his family. Wife files for divorce. Husband responsible for the debt despite securing debt while supporting his family??! Ex-wife walks away scot free without offsetting debt with family assets. This is so unfair, whether or not its legal!

My wife will be paying a larger proportion of our bills from now on with her own credit card, and I will simply help her to pay off her monthly bills.
Deal Addict
Apr 19, 2010
1385 posts
370 upvotes
UrbanPoet wrote:
Jun 17th, 2017 12:31 pm
Don't be cheap... send me a pm. I can offer you a $100k/yr job at my multi national corporation.
There is a $50k sign on bonus which should hold you off until your first pay check.

Please see me if you have any problems with h.r. Suzanne can be a biotch sometimes.

Anyway... i'm heading to my cottage in musoka. Lemme know if you want to join. You can use the pool house.
The helicopter leaves at 3pm.
I'm confused by your post. Enjoy your cottage!
Deal Addict
Jul 18, 2016
1608 posts
578 upvotes
ace604 wrote:
Jun 17th, 2017 12:32 pm
Spouse only liable for joint debt. Legally, officially "joint" debt.
You may be right, but do you see the logical problem with this? One can accumulate assets during the marriage which AREN'T joint, but these assets are still divisible in divorce. However, this doesn't apply to debt?
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Aug 8, 2012
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BC
bewiseman wrote:
Jun 17th, 2017 12:52 pm
You may be right, but do you see the logical problem with this? One can accumulate assets during the marriage which AREN'T joint, but these assets are still divisible in divorce. However, this doesn't apply to debt?
A settlement is separate from debt liability though.

The spouse would have to come after the deadbeat spouse for payment. The bank will only come after the spouse on title of the debt.
POLL: How frequent is your RRSP-matching?
Plastiq: Pay any bill with credit card for 0-2.5% fee (help meet min spending and keep old cards active!)
Rewards program transfer times (e.g. SPG->Aeroplan, Marriott->SPG, Amex MR->SPG...)
Deal Addict
Jul 18, 2016
1608 posts
578 upvotes
ace604 wrote:
Jun 17th, 2017 12:58 pm
A settlement is separate from debt liability though.

The spouse would have to come after the deadbeat spouse for payment. The bank will only come after the spouse on title of the debt.
Yes, I see your point. However, its another danger to note for people with a spouse that has bad credit.

For example: Wife has bad credit and earns no income, but supports children. Husband secures mortgage in his own name only. In divorce settlement, wife wins "family home" to maintain stability for children. Debt liability is purely owned by husband, AND he loses house.

I understand now the value of joint ownership of debt despite low income spouse. Thanks!!
Sr. Member
Aug 19, 2016
613 posts
181 upvotes
Where is the negative net worth option?

Hate to discriminate the underperformers.
Member
Aug 7, 2014
277 posts
73 upvotes
Life is not about net worth, but about self worth. And never let your net worth determine your self worth. Also, positive self worth trumps negative net worth. Smiling Face With Open Mouth
Member
Dec 26, 2013
292 posts
61 upvotes
Would we include DB pension plans in this as well? I guess this would be the termination value?
Member
Aug 7, 2014
277 posts
73 upvotes
wilyam wrote:
Jun 18th, 2017 9:18 pm
Would we include DB pension plans in this as well? I guess this would be the termination value?
Yes, DB pension should be included in the net worth calculation. It would be the amount that you could withdraw from the plan(s) if you quit your job today. For many people entitling to a gold plated pension, that amount at age 65 could worth one million dollars.
Deal Addict
Apr 2, 2007
1421 posts
60 upvotes
Toronto
OP Why don't you have a negative?
There are people that live in debt, even with a house (mortgage), cars (financing)... and don't forget Credit Card debt.

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