Archives > June 2015

10 Financial “Must-Knows” to Successfully Survive Your Divorce

by Sharon Numerow

1. Money will almost always become an issue in divorce

  • Many people start out thinking and believing the promise that things will always be divided evenly and straightforward
  • Money is sometimes used as a bargaining tool to resolve other issues

2. Gather everything you can about your family finances

  • Make a list of your financial property
  • Gather statements and documents on all property
  • Frequently one partner is not “in-the-know” on the family finances which makes this task difficult

3. Understand that a 50/50 division of property is not always fair financially

  • Take into account future value of property
  • Comparable values of different types of property are not always equal due to tax implications

4. Consider the tax implications of all of your financial divorce decisions

  • Consider the year in which you divorce, your change in marital status will affect your tax situation
  • Consider the tax effect and true value of the assets you will retain

5.  Make sure that you can afford to keep the house before you settle this matter

  • Pre-qualify for a mortgage
  • Upkeep costs can be expensive, both financially and emotionally

6. Understand the value of your investment and RRSP portfolios

  • Understand tax liabilities and advantages of different investments

7. Ensure pensions are properly valued

  • Defined Benefit Plans must always be valued by a specialist

8. Make sure that the payor of child and/or spousal support has life insurance to support these financial obligations

9. Seek FINANCIAL consultation during your divorce from a divorce financial expert not from a lawyer

10. Redo your will