In December 2011, and after 10 years of marriage and one heated cheating
scandal, Vanessa Bryant had finally had enough. Quickly after, she filed
for divorce from her husband, Kobe Bryant, citing “irreconcilable
differences” as the reason for the split.
Since then, the couple has been working towards fully and finally resolving
the issues stemming from their separation on an amicable, peaceful and
private basis with the assistance and guidance of their lawyers.
On January 21, 2012, People.com reported that yet another issue in their
divorce is nearing full and final resolution as the couple has voluntarily
divided their assets. According to property records, Kobe’s and Vanessa’s
three mansions, valued at an estimated $18.8 million, have been transferred
entirely to Vanessa.
Typically, when spouses decide to separate and property is involved, the
division of property must be dealt with fairly and reasonably. If spouses
are able to cooperate and discuss the division of their assets in a mutually
agreeable manner, then they can choose to proceed by way of mediation
or negotiation, similarly to the Bryants. In so doing, they would avoid
all of the unduly and burdensome fees associated with litigation.
If, on the other hand, the spouses are highly litigious and adversarial,
then mediation and/or negotiation may not be best suited for them and
so proceeding to a court action would be their only recourse.
What would happen if Vanessa and Kobe were dividing assets in Ontario?
Pursuant to s.7 of the (Ontario)
Family Law Act, the court may, on application by a spouse, former spouse, or deceased
spouse’s personal representative, determine any matter respecting
the spouse’s entitlement to an equalization payment under s.5.
For clarification, an equalization payment is a payment made by one spouse
to another after their respective net family properties have been calculated
and it is determined that one spouse has a net family property of higher
value than the other. When this occurs, the spouse with the net family
property of lesser value is entitled to one-half the difference.
In order to determine a spouse’s net family property a calculation
must be done whereby the spouses’ liabilities are deducted from his
or her assets on the date of separation, and then any assets and/or liabilities
owned on the date of marriage are deducted from that amount.
There are numerous ways for a spouse to satisfy his or her obligation relating
to an equalization payment. For example, he or she may make a direct payment
to the other in the amount required. However, the Bryants chose another
method as Kobe transferred his interest in three properties to Vanessa.
This method of satisfying an obligation pursuant to a division of property
is not a remedy limited to negotiations or mediation. In Ontario, and
pursuant to s. 9 of the
Family Law Act, a court may order under subsection (d)(i) that, if appropriate to satisfy
an obligation imposed by the order, property may be transferred to or
in trust for or vested in a spouse, whether absolutely, for life or for
a term of years.
This remedy would be useful in a situation where, for example, a direct
payment in an extensive amount would not be feasible given a spouse’s
limited financial means, or when there are multiple properties that can
be easily and fairly divided between the spouses through the transferring
of interest such that any equalization payment owing would be satisfied.