Beyonce and Jay Z: Planning for Divorce?

One of the wealthiest couples may be heading for divorce. Beyonce and Jay
Z are reportedly not wearing their wedding rings on their current tour
and it has been rumoured that Beyonce has begun apartment hunting in Manhattan.
Furthermore, Beyonce reportedly met with a group of financial advisers
to discuss her “assets as a single lady” as reported by Hollywood Gossip.

While Jay-Z chose to “put a ring on it”, the ring has disappeared
from sight on her current tour. The question remains, what would the
divorce look like? Let’s take an Ontarian legal look at the potential divorce.

Governing Legislation

The
Divorce Act and
Family Law Act are the two statutes that would provide the framework for the divorce
if it were to occur in Ontario.

Child Support

It is well known that Beyonce and Jay Z have had one child together – Blue
Ivy. It is clear that this child will grow up in a financially stable
home regardless of the parenting plan that is reached between Beyonce
and Jay Z. Nonetheless, section 15.3 of the
Divorce Act expressly provides that the courts must give priority to orders for child
support before awarding spousal support.

In Ontario, the amount of child support to be paid is determined in accordance
with the Child Support Guidelines which takes into account:

1. the number of children; and
2. the income of the payor.

The court must also take into consideration the time the child spends with
each parent and, if time is split between the two parents, the child support
calculation becomes more complex.

If Blue Ivy were to spend more than 60% of the time with either Beyonce
or Jay-Z, the amount of child support to be paid by the other would be
extreme. If the Court adhered to the Child Support Guidelines, the payor
would be ordered to pay $1254 plus 0.74% of any income over $150,000.
Remember that these numbers are based on an annual income, and, although
0.74% looks like a small percentage, it definitely is not. For example,
if Beyonce or Jay-Z only earned $1,150,000, the payor would have to pay
monthly child support in the amount of $1254 + $7,400. That is a total
of $8,654 dollars per month, and we all know that their incomes far exceed
these figures.

Secondly, any special expenses would be split between the parties according
to their annual incomes, and we all know that the children of the rich
and famous often do some of the most expensive and outrageous activities.

Spousal Support

The objectives of
spousal support are outlined in section 15.2(6) of the
Divorce Act. The legislation recognizes four goals to be promoted by orders for spousal support:

1. recognizing economic advantages or disadvantages arising from the marriage
   or its breakdown;
2. apportion financial consequences arising from child care;
3. relive economic hardship arising from marriage breakdown; and
4. in so far as practicable, promote economic self-sufficiency within a reasonable
   period of time.

Although I am sure that some interesting arguments may be crafted by either
counsel, one may presume that neither party will be required to pay spousal
support given their significant respective incomes.

Equalization Payment

The process of
equalization in Ontario is outlined in sections 4 and 5 of Ontario’s
Family Law Act. To summarize in the most basic form, the steps to calculate the equalization
payment are:

1. Determine the valuation date (defined in s. 4) – in this case, the date
   of separation;
2. Determine what property was owned by each spouse on V-day;
3. Determine whether any property constitutes excluded property (s. 4(2));
4. Assign values to property;
5. Determine the value of deductions (s. 4);
6. Calculate each spouse’s Net Family Property (NFP), and determine the
   amount that is one-half the difference between the greater and the lesser
   (s. 5(1)); and
7. Assess any claim for entitlement to more than one-half the difference (s. 5(6)).

Thus, in Ontario, it is not a discussion of “you get the cottage and
I get the home”, but, rather, a mathematical calculation. This does
not mean that property cannot exchange hands to satisfy the “debt” owed.

In the case of Beyonce and Jay-Z, given their extensive list of assets
and sources of income, the process to reach who owes the other and in
what amount is complex and will be left to their respective counsels.
I am sure, however, that neither will suffer from such an Order given
their vast financial resources.