Getting Separated or Divorced
No one plans on getting separated or divorced. Most people who get separated or
divorced experience significant financial changes. Usually, this new financial reality
involves having less money.
There are many reasons why this might
happen:
Legal bills can be costly.
Instead of sharing costs, you and your
former partner will both have to pay for
things separately.
It’s more expensive to run two
households than one.
If you have children, you will also need
to make sure their financial needs are
met.
FreeImages.com Content License-Alex Bruda
The following is a checklist for getting through a separation
(from GetSmarterAboutMoney.ca).
Getting through a divorce or separation: A financial checklist
Put all your papers in order quickly.
Make a list of your joint assets and debts. You’ll need records of your
bank, Registered Retirement Savings Plan (RRSP), pension savings,
and any investment account statements. You’ll also need your will, tax
returns, credit card records, mortgage papers and insurance policies.
If you have children, decide about child support and custody.
Make sure you get legal advice on this matter. The rules you have to
follow are set by the province where the paying parent lives. If you and
your ex-spouse can’t agree, a court will decide for you.
Estimate how much money you will need for the next six to 12 months.
If you have cash, keep it where you can easily get it. If you have joint
accounts, split the money evenly, close the old accounts, and open a new
account in your name only.
Stay on top of your bills.
If you don’t, the interest charges can really add up. You may also get a
bad credit history, which means you may be unable to borrow more when
you really need it.
22