Too often I have seen the proceedings of a divorce go off the rails financially at some point during the process. Getting divorced can be costly; rarely are there two individuals who make the same amount, contribute the same amount to their individual RRSP's, TFSA's and to the household expenses. If that was the case then division of property is easy! Rarely is it easy.
All things considered you need to be very aware of the financial situation through the process. Have someone do a financial plan for you with the possible outcomes.
- is the house being sold? Can one of you afford to buy the other out?
- Is there going to be continued support payments? For how long?
- Is it better to have a lump sum payout in the case of spousal support? Or is it best to have the monthly payments?
- Is the "supporter" going to be earning more money in the future or less? Have they already reached their peak earnings?
It doesn't matter which side you are on - the one who is paying or the one who is receiving, both of you need to be aware of how this change will affect you financially.
Most times if you can come to an agreement it's better, all to often I hear about the crap shoot of going through a trial! To have someone else decide your financial well being and not you is a little like betting your mortgage at the craps table.
Have a financial advisor do a plan for you - at the beginning, the middle and the end.
It's in both of your best interest. Or you can always go to Vegas!
Kathryn Finn, CIM | Investment Advisor | RBC Wealth Management | RBC Dominion Securities Inc
This article is supplied by Kathryn Finn, an Investment Advisor with RBC Dominion Securities Inc. (Member–Canadian Investor Protection Fund). This article is for information purposes only. Please consult with a professional advisor before taking any action based on information in this article. Kathryn Finn can be reached at 416-974-2535 or kathryn.finn@rbc.com. To read more about Kathryn click http://thedivorceangels.com/vendor/kathryn-finn/
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