The Rural Voice, 1990-09, Page 22GIC
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1-800-265-5503
DAVID F. TRUDELL, B.Sc (Eng), P. Eng.
Professional Engineer
- Structural & Agricultural Engineering -
- Former OMAF Ag. Engineer -
CUSTOM DESIGNED BARN PLANS
SOIL EROSION CONTROL DESIGNS
STRUCTURAL EVALUATIONS & REVIEWS
CUSTOM HOUSE PLANS
1 Armstrong Crescent, Markdale, Ont.
519-986-3768
ALLEN WILFORD LL.B.
Graduated from Osgood
Law School June 15, 1990
Allen Wilford, author, and former president of
the Canadian Farmers Survival Assoc. is best
remembered as a farm activist, instrumental in
organizing a penny auction, resulting in an arrest
and hunger strike. He also instigated a court case
leading to the precedent setting Ontario Supreme
Court ruling that the Royal Bank had overcharged
him $223,000 on his operating loan.
Wilford is strongly committed to environmental
issues and presently farms in Grey County.
Wilford is currently articling with the law firm of ...
Ryder, Planz & Sherwood
Port Elgin, Ontario
519-832-6941
18 THE RURAL VOICE
THE FAMILY FARM: DIVIDING THE SPOILS
In our last Agrilaw column, we
discussed what property is included in
the valuation under the Family Law
Act and the importance of a thorough
valuation for the eventual division of
the value of all property.
The Act defines "net family prop-
erty" as the value of all the property a
person owns on the valuation date
(usually the date of separation) less
certain exemptions and deductions.
To determine the net family
property owned by a husband or wife,
the value of all property owned by
each spouse must first be totalled.
The debts and other liabilities of the
spouse are then subtracted from the
total, as well as the value of any
property owned by either spouse on
the date of the marriage, less the
amount of any debts at that time.
An example of the calculation of
net family property is shown in the
chart below.
Since the husband inherited the
family farm before his marriage and it
was valued at $250,000, his wife has
the greater net family property. Be-
cause the wife's net family property
would be greater than the husband's
if the farm were sold, he would retain
all of the items set forth in his asset
column less his liabilities. The wife
would pay to him the additional funds
representing the difference between
their net family properties, totalling
$125,500, to equalize their property.
This may look good on paper,
but to keep the farm the husband will
have to pay 5125,500 to his wife. If
the farm is already financially over-
burdened, it may be that the husband
cannot afford further unproductive
debt. The family farm may have to be
sold to satisfy the financial entitlement
of each party, although the Act pro-
vides that all reasonable efforts should
be made to avoid a sale, including
(M = $1,000)
Family Farm Partnership
Personal Bank Accounts
RRSP
Personal Loan
Subtotals
Total Net Family Property
(Assets — Debts)
Less deductions for pre -marital
property (value of family farm
inherited by husband before
marriage was 5250M)
NET FAMILY PROPERTY
HUSBAND WIFE
Assets
$250M
10M
10M
5270M
- (513M)
$257M
- 250M
Debts Assets Debts
$250M
1M
10M
(510M)
(3M)
(513M)
($3M)
5261M ($3M)
- (53M)
$258M
$7M $258M
EQUALIZATION: 5258M - 57M = 5251M = 2 = S125.5M