Moose Jaw Divorce Lawyer

Divorce Settlement Calculator: How are Divorce Settlements Calculated?

Divorce Settlement Calculator in Alberta: How to Calculate?

Divorce is one of the most unexpected and complex events of life. It involves several agreements to come between the two involved parties. And if you have a child, the process becomes much lengthier.

The best practice of leaving partner would be to sit together and come to a settlement agreement in this situation. This includes dividing assets, properties, alimony payments, child custody, etc. But how are divorce settlements calculated?

There is plenty of divorce settlement calculator available for you to look into. We are here to make divorce process easier with our divorce settlement guide.

What is Included in a Divorce Settlement?

A divorce settlement agreement is a legal contract in which divorced couples agree on the terms of their divorce. The agreement could cover a variety of topics, including:

Marital and separate property

You must first identify whether a certain asset is a marital or separate property. Items obtained during a marriage are known as marital property. This includes any assets or debts.

On the other hand, Separate property refers to assets obtained before the marriage. This could happen due to gifts, inheritances, or retirement benefits.

The division of marital property following a divorce is governed by state law. You will most likely be able to keep your independent property unless it has been blended with marital property.

You can use a divorce and money calculator to prepare a prenuptial agreement to divide assets in the event of a divorce. If they don’t, they’ll have to come up with a fair compromise that will satisfy all parties.

A reasonable settlement should first identify a marital and separate property, then focus solely on the division of marital property.

Look into your state’s property division laws as well. States typically divide property in one of two ways: equitable distribution or 50/50 community property states.

Child custody and visitation

A reasonable divorce settlement agreement ensures that both parents are active in the rearing of their children. Unless there are special reasons why one parent deserves more time with the kid, both parents will most likely receive equal custodial time.

You’ll also need to agree on visiting/parenting schedules that consider the child’s requirements.

Child support

A child support calculator is available in most states to determine how much child support a parent is entitled to. They usually consider:

  • The total income of both spouse
  • The parent with the physical custody
  • Costs of child-care
  • Additional costs for the child’s upbringing


Alimony may be granted if one spouse financially relies on the other. To determine whether alimony should be given, courts look at various circumstances. Among them are:

  • Financial needs of both spouses
  • Education background and employment status of the spouse receiving alimony
  • Mental or physical issues (if any) of the spouse receiving alimony

How are Divorce Settlements Calculated?

The six procedures below will provide you with a basic grasp of how property is handled under the Family Law Act.

Let’s know the process:

1. Determine the property value

Making a list of each spouse’s assets is the first step in determining their property rights under the Family Law Act. Personal property, bank accounts, pensions, real estate, and any corporate shares are examples of this. The worth of a spouse’s property must be determined from the date of separation, which is usually the day when the couple stops living together.

Most assets’ worth can be easily calculated using the current fair market value. To figure out the value, you can use a divorce calculator. However, some assets might be difficult to value, such as pensions or non-publicly traded stock. An accountant and a lawyer may be required if you and your spouse jointly own property or you each own half of the value.

2. Subtract total debt from separation debt

The next step is, to sum up all your debts as of the separation date. Count half of your debts as yours if you and your spouse have debts combined. The whole debt is then subtracted from the total worth of your possessions at separation. This will offer you the overall value of your belongings since the split up.

3. Less the debt from the property value

After that, compile a list of everything you possessed and all of your debts on the exact marriage day. Sum all the value on the day of your wedding.

Keep in mind that “value” refers to the value at the time of the wedding, not the current value. Subtract the total worth of all the debts on your wedding day. This will provide you with the total value of your property as of the marriage date.

4. Subtract the previous 2 steps’ values

Now you can figure out how much “net family property” you have. To summarise, the worth of your property at the time of separation is totalled.

You then subtract any obligations owed on the separation day from the value of your property, less any debts owed at the time you married. Your net family property is the result of the calculations (NFP). It must be greater than 0 to be valid. It can’t be a negative number, in other words.

5. Subtract personal injury, life insurance, and inheritances compensations

In this step, you will need to deduct all the personal injury or insurance settlement you receive from your spouse till the separation day. This step can be quite tricky. So, the best practice would be to consult a divorce attorney.

6. Deduct the lower net family property from the higher, and divide by two

Finally, your total net family property value will be divided equally between you and your spouse. The court will analyze the two totals and order the higher-totaling spouse to pay the lower-totaling spouse half of the difference.

Tips for Property Settlement Agreements in Alberta

Negotiating a divorce settlement can be extremely delicate and tricky. So, here are some tips for negotiating property settlement agreements in a divorce.

Seek mediator support

Attorney and court fees can add up quickly, but mediation can save you a lot of money. An impartial third-party mediator will lead the mediation procedure. This lawyer will assist the couple in negotiating a fair settlement.

Gather all necessary financial information

If both of you are thinking about getting divorced, be sure you have all of your financial documents in order before beginning a settlement negotiation.

Also, make backup copies of important financial papers such as retirement plans, mortgage payments, and bank accounts for future reference.

Carefully review the settlement agreement

Although a settlement agreement is about compromise, it does not mean you should not receive a fair share of the property. If you’re unsure about the terms of the agreement, it’s a good idea to have it reviewed by an attorney to ensure that your rights are respected.


A divorce is never an easy event. It is the most stressful life experience you might ever go through. So, having a clear vision and tactics to negotiate a settlement agreement with your spouse should be a priority.

You might not want to go to the court and follow a lengthy process. Instead, it would be smarter to use a divorce and alimony calculator to divide all the assets and other marital belongings.


What is divorce equalization?

An 'equalization payment' is the amount of money that the spouse with the greater total must pay to the lower total. The goal of an equalization payment is to equalize the financial situation of both spouses. As a result, the total worth of the property owned by both spouses is the same.

How are assets split in a divorce?

Unless you and your spouse agree to the contrary, the law requires that all family property and debt be divided equally between you and your spouse. If you and your spouse reach a property and debt division agreement, you'll divide everything according to the terms of the arrangement.

What does a wife get during a divorce?

Matrimonial assets, also known as marital assets, are assets that you've accumulated or gained during your marriage. Savings, property, personal possessions, pensions, and cash in the bank are examples of these types of assets. These assets will constantly be added to the total 'pot' and must be distributed fairly.

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