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