Meaning of equalization payment | Babel Free

Definitions

1. Extra money transferred from the federal government to a province, drawn from general tax revenue and intended to redistribute some wealth from relatively prosperous provinces to relatively poor provinces.
   Canada
2. In a divorce agreement, a payment made by one spouse to the other in order to create an equal division of assets.
   Canada

Examples

“Ontario may soon be classed as a "have-not" province and receive⟳ equalization payments for the first time in its history.”

“Six “have-not” provinces are splitting $15.4 billion in equalization payments in 2012-13.”

“People whose provinces receive⟳ equalization payments are largely in denial about living in have-not regions, a poll suggests.”

“The court set⟳ aside a trial judge's decision from 2007 that required Harold Serra to make⟳ an "equalization payment" of $3.3 million to his former wife.”

“In places like⟳ Manitoba and Ontario, where the distribution of family assets upon marriage breakdown is done through an equalization payment based on the value of what both spouses’ own⟳, the claim⟳ can be extinguished through a discharge from bankruptcy.”

“[T]he impact of income taxes shapes the size and type⟳ of assets that are transferred between spouses. So, carefully consider⟳ them when splitting assets as part of an equalization payment.”

CEFR level