ANNOUNCER: I’m with Ken Fraser from Cohen Highley Lawyers. What’s an equalization payment for divorcing couples?
KEN: When married couples separate, the law allows them to share the financial growth that accrued over the course of the marriage. If one spouse experienced greater growth in their net worth, that spouse will make an equalization payment to the other spouse. This is so that both spouses can share the financial developments that happened over the course of the marriage. It should be remembered that there are time limitations on how long a person has to seek equalization.
ANNOUNCER: How long do they have?
KEN: Depending on how things unfold after the relationship ends, a claim must be commenced six years after the parties separate, two years after the divorce is granted, or six months after the other spouse’s death. And if the deadlines are missed, typically the claimant is out of luck. However, courts can grant extensions. In order to obtain an extension, it must be shown that the person has a reasonable claim, that the delay was incurred in good faith, and that no one will suffer harm from the delay.
