When calculating equalization of Net Family Property, it is important to put one’s mind to the question of disposition costs of certain assets. Failing to include this could lead to a loss of several thousand dollars. However, its inclusion is not necessarily always appropriate.
For the deduction to be considered appropriate, you need to show that it is more likely than not that the asset would be sold. If it is not clear that the asset will be sold in the foreseeable future, you may not be allowed to take the deduction.
You must also determine the appropriate disposition cost of each asset. For example, the disposition costs for RRSPs will differ from that for Real Estate.
The main thing is to put you mind to this issue because as mentioned earlier, it could amount to a lot of $$$.
If you need any help with family law matters, contact our experienced lawyers in Pickering, Toronto, Markham, and Scarborough. You can call us at (905) 492-7662 or email us at [email protected] to schedule a consultation.