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