Certain Properties under the Family Law Act are excluded from the calculation of Net Family Property (NFP). The NFP is calculated as of the Valuation date, which is usually the separation date and includes the details of assets, debts and liabilities for equalization. Certain properties are not shared between spouses. Such properties are shown as excluded properties on the NFP does not become part of the net family property. NFP is the total of all the assets less the liabilities and less the excluded properties.
Excluded properties are as follows:
- Gifts or inheritances received from third persons during the marriage
- Income of such gifts and inheritances,
- Insurance proceeds
- Court settlements
- Properties agreed by spouses by signing a domestic contracts
- Properties other than matrimonial home, if traced as a property mentioned above
NFP is the total of all the assets less the liabilites and less the excluded properties. The spouse whose NFP is more will give the other spouse one-half of the difference between them.
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