McDreamy is Getting Divorced

TMZ has reported that Patrick Dempsey and Jillian Fink have decided to
end their marriage. According to a joint statement, the couple’s primary
“concern remains the well-being of [their] children”. Further,
according to TMZ, Jillian filed for divorce, citing irreconcilable differences.

It appears, however, that the split is somewhat amicable as Jillian is
asking for joint custody of their three children, a 12 year old girl and
twin 7 year old boys. Patrick and Jillian were married for 15 years and
Patrick is reportedly worth around $40 million.

If the couple were to reside in Ontario, there would most likely be a hefty
equalization payment made to Jillian by Patrick. In determining the amount
of an equalization payment pursuant to Part I of the Family Law Act in
Ontario, the following steps are required:

Step 1: Determine the valuation date or V day (defined in s. 4);

Step 2: Determine what property was owned by each spouse on V day (s. 4);

Step 3: Determine whether any property constitutes excluded property (s. 4(2));

Step 4: Assign values to property;

Step 5: Determine the value of deductions which include:

1. Debts and liabilities at V day (including contingent tax liabilities); and
2. The value of property (other than the matrimonial home) owned at the date
   of marriage, after deducting debts and liabilities (other than those related
   directly to the acquisition or significant improvement of the matrimonial
   home) calculated at the date of marriage;

Step 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)).

Step 7: Assess any claim for entitlement to more than one-half the difference
(s. 5(6)).

Assuming that McDreamy earned the majority of his net worth during the
marriage, it appears as though Jillian has struck it rich after the breakdown
of their 15 year marriage. If they were residents of Ontario, Jillian
would be entitled to half the difference between her and McDreamy’s
respective net family property. For presumption sake, let us assume that
McDreamy’s net worth, $40 million, was earned in its entirety during
their marriage. Further, let us presume that Jillian’s net worth is
approximately $2 million. Now excluding all other factors (i.e. deductions,
exclusions, etc.), McDreamy would owe to Jillian an equalization payment
in the amount of
$19 million!