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