6. Are stocks subject to equalization?

Yes. Stocks, shares, investment portfolios, brokerage accounts, stock options, restricted share

units, employee share plans, and similar investment assets are generally property for equalization

purposes if owned by a spouse on the valuation date.

The relevant questions include:

 the fair market value on the valuation date;

 whether the shares were owned before marriage;

 whether any marriage-date deduction is available;

 whether the shares were acquired by gift or inheritance and remain excluded property;

 whether taxes or disposition costs should be considered;

 whether the asset is liquid or restricted; and

 whether the asset is held personally, corporately, or through an employee compensation

plan.

Equalization does not necessarily mean the shares are physically divided. Ontario equalization is

usually a monetary payment from the spouse with the higher net family property to the spouse

with the lower net family property.

7. Is an RESP subject to equalization?

An RESP can be relevant in equalization, but its treatment can be fact-specific.

In many cases, the court will examine:

 who is the subscriber;

 who contributed the funds;

 whether the RESP is intended for the children’s education;

 the value of the subscriber’s rights;

 whether government grants are included;

 whether any portion should be excluded or preserved for the child;

 whether the RESP should remain intact for post-secondary expenses; and

 whether the parties agree to transfer or jointly administer it.

An RESP is often treated differently from a normal bank or investment account because it is

typically established for the child’s education. However, it may still have value connected to a

spouse’s property rights depending on how it is structured. A common practical resolution is to

preserve the RESP for the child and address contribution, control, and use of the funds in the

separation agreement or court order.