DATE OF MARRIAGE DEDUCTIONS

When completing a Financial Statement, you must list your assets and liabilities as of the date of marriage and the date of separation. I recently received a Financial Statement from the opposing party. They claimed a date of marriage deduction of approximately $1 million!!!! Obviously, the date of marriage deduction would reduce the Wife's Net Family Property, and thereby possibly increase the equalization payment that is owing to her from my client. In order to provde the deductions, the Wife would have to provide bank statements or provide a valuation as to the assets she owned on the date of marriage. If the Wife is unable to substantiate what she owned on the date of marriage, she will not be able to claim the deduction. The problem is most people, especially in long term marriages, are unable to substantiate their net worth as of the date of marriage. Most people do not keep bank statements for years. The banks will only keep them for 6 years. Perhaps on the eve of their marriage, people should make a list of their assets and liabilities as of the date of marriage, accumulate their supporting documentation. I hate to be a pessimist, but, it seems that you should hope for the best and plan for the worst.