42 ~ Sunday, Nov. 8 1992 - North Shore News

LIFESTYLES

It is not necessary to lose family home

MY HUSBAND, to whom 1
have been married for the
last 30 years, has recently
informed me that ke infends
to move from home at the
exid of the month.

Family
Affairs

HUGH
STARK

KIRSTIE
MACLISE

We have raised two lovely
children together and in fact have
grandchildren. I am deeply hurt
and shocked by his abrupt ter-
mination of our marriage, but am
a realist and know that FE must
protect myself financially as much
as possible. :

At. the present time I am 51
years of age and he is 55.

Three years ago we moved into
a bungalow in an arer where I
know many people and which is
clase to the Lonsdale - shopping
area and our church.

My husband is an executive in 2

_ Mational company and earns a far-
above-average income. His offer
of majatenance io me for the rest
of my life or until I remarry is
quite generous; I have no quarrel
with that.

The only concern I have is my
home. I really ove my home and
neighbors and enjoy working in
the yard and doing volunteer work
at our church.

The home also aliows me to
have my grandchildren stay with

me overnight, which I enjoy very

reuch.

The Family Relations Act, !
understand, contemplates an equai
division of assets, - particularly
after a long marriage such as my
husband and I have enjoyed.

I wish to retain the home in my
name, but do not have the cash
available to pay my husband his
one-half share, nor do — have an
income other than the
maintenance he pays me to go out

_ and obtain a mortgage to be plac-
ed on the home.

I should add that my husband
has a very substantial pension
with his company for which he
has worked for the last 25 years.

When I worked I ‘contributed
regularly to an RRSP aad my
husband as well contributed to my
plan in all of the years that he was
able as a result of his tax bracket.

The pension, the’ home and my
RRSP are the major ussels we
have acquired. My RRSP is worth
approximately $135,000 at the
present time.

My parents are elderly and own
a substantial property in West

A FUJI ORIENTAL

ZF
ff HEALING ARTS

TRADITIONAL JAPANESE
ACUPUNCTURE & SHIATSU

tr
YOGA CLASSES GROUP & PRIVATE
pi nthatheerrcctal arn

for information and appointment
2 CALL 984-7900
Suite 105-130 Lonsdale Ave., N.Van.

Vancouver, | am not really con-
cerned about my kaving money
for my retirement.

Can anything be done so that i
can remain in the home?

You are one of the fortunate
couples who do have, apparently,
the financial resources to work
out a suitable settlement to both
of you.

We will assume that there is lit-
tle or no mortgage against the
property at the present lime.

Firstly, your husband's pension
with his company should be
valued by a quatified appraiser.

In all likelihood, it would be of
interest to your husband to retain
his pension, which no doubt has a
substantial value.

Once all values are known, you
may be able to satisfy the pur-
chase of his interest in the home
by releasing your interest in his
pension and by the tax-free trans-
fer of your RRSP to an RRSP for
your husband.

He will want to discount the
value of your RRSP because once
he removes it from his plan after
your transfer, it will be taxable in
his hands just as normal income
would be.

If, by releasing your one-half
share in his pension and transfer-
ting to him all of your RRSP, it is
still not enough money to satisfy
his one-half interest in the home,
you could give him a mortgage
back of a very low interest rate
and simply adjust the maintenance
he is paying to you accordingly.

The other way of satisfying him
as a result of the shortfall in
funds would be to leave him with
a minor interest in your home,
which he would realize upon
the sale of the home whenever
that takes place.

The home would be held as te-
nants in common and his percent-
age interest in the property stated

——i z y

= “Lest We Forget’

clearly in the title document.

This latter suggestion may ap-
peal to him. We assume that fhe
has always been a good father and
grandfather and the interest in the
home would thea form part of his
estate which in all fikelihood
would be left at Jeasi in part to
your children and grandchildren.

ft may also be that your share
of the pension and RRSP are
more than is required to satisfy
your husband's share in the home,
in which case you would simply
retain the home and allocate the
RRSP accordingly to adjust the
balance.

My business partner is presently
involved in a divorce proceeding
and tis wife’s lawyer is attempting
to obtain our financiai statements
and other financial information
for our company.

We are equa! shareholders and,
at the outset of cur corporation,
signed a shareholder's agreement
which stipulated that neither of us
could release any financial infor-
mation to anyone without (he
other’s prior written consent.

1 do not want the financial in-
formation from our company
publicized because 1 am afraid it
will hurt our business.

Does the company have to
release the financial information
requested, and should the com-
pany be represented at the hearing
for the financial information
should his wife's lawyers bring an
application before the court for
the production of the documents?

Your business pariner must
produce all of the information of
the corporation that he is entitled
to receive as a shareholder of that
company.

The Companies Act sets out
several documents and categories
of information to which a share-
holder in a private company such
as yours is entitled.

ROYAL CANADIAN LEGION
and ANAF VETERANS
OF CANADA \

Remembrance Day Services ==

WED., NOV. 11, 1992 .

WEST VANCOUVER

MEMORIAL CENOTAPH

Veterans Fall in 10:15 a.m.

Safeway Parking Lot

NORTH VANCOUVER
CENOTAPH

Victoria Park
Keith Rd. and Lonsdale
Fal! in 10:15 a.m.

Under the auspices of the
North Van Veterans Council
) - BARN

44 Your business partner must
produce all of the information of the
corporation that he is entitled to
receive as a shareholder of that
company. 99

Certainly, the financial state-
ments for the company must be
produced, although it is question-
able whether the financial state-
ments of a subsidiary of that
company must be produced.

As to whether the company
Should have separate repre-
sentation to defend itself against
the wife’s application for financial
information, it is desirable to have
legal representation in attendance
to make @ presentation to the
court other than in the very rare
oceasicn, and to ensure that only
the appropriate information is
ordered to be produced.

Your concern should go far
beyond simply the production of
financial documents, however, as
one of only two shareholders of

an active company.

An award by the court of an in-
terest in your partner's shares to
his wife or a particularly onerous
and adverse financial loss in the
proceedings by him could well
destabilize an otherwise viable and
healthy company.

The matters discussed in this
column are for general informa-
tion only. If you have matrimo-
nial problems you should seek
legal advice so that your adviser
can assess your particular cir-
cumstances and give you the best
advice. Questions about family
law and estates can be directed to
Stark & MacLise c/o Family Af-
fairs, North Shore News, [13¢
Lonsdale Ave., .North Vancouver
V7M 2H4.

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