How to prepare financial statement

how to prepare financial statement

Property (Part 4)

  • Note the dates set out in the financial statement:
    • Date of Marriage,
    • Valuation Date (most often the date of separation)
    • Statement Date (the date the financial statement is being completed).
  • Clarify each of these dates in the statement; ensure consistency with the pleading (Application or Answer, as the case may be).
  • List only the property owned (as opposed to "used" or "possessed") by the client on the applicable dates.
  • Show 50% interest and value for jointly-owned assets as “joint @50%”
  • Note whether or not the joint tenancy for jointly-owned assets is intended to be severed.
  • Use market value, not purchase price or replacement value.

Debts and Other Liabilities (Part 5)

  • List only debts owed by client on the applicable dates.
  • List one-half value

    of the debts owed jointly as “joint @50%”

  • Include contingent or future debts, such as deferred personal taxes, capital gains tax and costs of disposition.
  • Consider appropriate discounts, e.g. net present value, minority share
  • Include debts to parents, friends and other relatives.

4 Calculate property and debts at date of marriage (Part 6)

  • List all property owned and debts owed on the date of marriage.
  • Gather and compile in a disclosure brief the corresponding supporting documents / evidence.
  • Note: A home owned on the date of marriage, which is a matrimonial home on the valuation date, does not entitle the owner to a "deduction" from net family property on the date of marriage. Any associated mortgage debt is omitted, too. [Review s. 5 of the Family Law Act ].

5 Calculate excluded property (Part 7)


Category: Forex

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