6 Ways to Take Care of Finances during Separation or Divorce

Home Divorce 6 Ways to Take Care of Finances during Separation or Divorce

A married couple is meant to love each other for better or worse, as per their wedding vows. However, a marriage is only as good as the effort both parties put in, and there are times when it just doesn’t work out, leading to divorce or separation. This creates a new problem because finances come into play. Taking care of finances between a would-be divorced couple is never easy. If you’re going through a divorce, you need to keep a level head and handle it in the best way possible to ensure you and your would-be ex-partner would be satisfied. However, this is easier said than done because not all couples split amicably, and it’s often challenging to find common ground since money is involved. To help you with this, here are some crucial steps to take:

#1 – Collect All Important Papers

First and foremost, you must gather all the necessary papers related to your finances because they will be used to determine how your assets will be divided. This includes tax returns, pay stubs, bank statements, investment account statements, and mortgage documents. Make sure you have copies of these documents so you can have something to refer to during the divorce proceedings.

#2 – Create a List of Your Assets and Debts

Your assets and debts will come into play during the divorce proceedings because these will need to be divided between you and your spouse during the property division process. This list should include everything from bank accounts and investments to real estate and vehicles. You will also need to include any debts you and your spouse have on your list. This includes credit card debt, mortgages, and car loans. Creating this list can be helpful in several ways. It can give you a clear picture of your financial situation, which can help you negotiate a settlement with your spouse. It can also help you to identify any assets or debts that may be hidden. This is important because you want to ensure that all assets and debts are divided fairly between you and your spouse.

#3 – Deal with Joint Accounts

If you have joint accounts with your spouse, you may want to close them during the divorce to avoid further financial entanglement. You’ll need to decide who will keep the account and how to transfer any assets or debts. You’ll also need to notify the bank of your change in marital status. Otherwise, keeping them open will make you responsible for these financial obligations.

#4 – Update Your Beneficiaries

When you get divorced, one of the most important things to do is update your beneficiaries. This will help you because if something happens to you, your ex-spouse will not be able to inherit your assets. Updating your beneficiaries will also ensure that your children are taken care of in the event of your death.

#5 – Inform the Canada Revenue Agency

When a couple gets divorced, the Canada Revenue Agency (CRA) must be notified to update their records properly. This is important because it can affect tax returns and benefit payments. To inform the CRA of your divorce, you will need to fill out a form called the “Notice of Change – Personal Information” and send it to the CRA. This form can be found on the CRA website.

#6 – Consider Working with a Financial Advisor

If all else fails, you can always work with a financial advisor to plan your finances better during a divorce. This ensures that you’re making the best financial decisions moving forward and that you’ll get what’s supposed to be yours when your property gets divided.

Conclusion

Going through a divorce is never easy, but you need to take care of your finances to get a clear picture of your financial situation and help you make informed decisions about your future. You should also talk with your soon-to-be ex-spouse about your financial goals and work together to create a fair and reasonable divorce settlement. All that matters is that you’re financially secure for the next stage of your life as a divorcee, so you shouldn’t take any chances. If you’re looking for divorce financial planners in Calgary, Alberta Divorce Finances can help you! We understand that divorce and separation are never an easy process, so we’re here to help you reach an agreement to ensure all parties are satisfied. Simply go to our website to request a free consultation!