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Divorce

Dealing with divorce

Regardless of the circumstances, parting ways with a spouse is emotionally and financially challenging. While the financial and legal realities of being newly single will be different for everyone, planning ahead can make what will undoubtedly be a painful time a little easier. And when it comes time to stand on your own, we'll be there to help you see the possibilities more clearly.

You won't have to do this alone - you can count on us to help you with:

Invest in yourself

Women are different from men. So are your financial planning needs.

The actual cost of a divorce averages $1,353 for an uncontested divorce and $12,875 for a contested divorce according to the Canadian Lawyer's 2011 Legal Fees Survey. Markham, Ontario-based family lawyer, Radhika Lakhani says: "If you go to court, it's going to cost you well over $50,000."

Source: Financial Post: 'Tallying up the financial repercussions of getting a divorce' July 7, 2014

The expected cost of a wedding in Canada in 2014 is

$31,685.

Source: Weddingbells' Annual Reader Survey

  • Take stock. Seek counsel. Money matters.

    Regardless of your situation, careful preparation not only helps with the financial and emotional stress now but also for the long term.

    • Learn how your province or territory addresses divorce, gather vital information and documents and tally joint and personal assets.
    • Build a team of trusted professionals and personal confidants who will provide level-headed advice
    • Develop a budget to ensure enough cash to cover expenses throughout the process. Use credit cards wisely and keep tabs on your credit score.
    • Consult people you trust before making large financial decisions

    Documents You May Need

    • Marriage certificate and prenuptial agreement
    • Personal and business financial statements
    • Insurance policies
    • Tax returns for the past five years
    • Property records

  • Compromise and civility are key.

    During negotiations, it's important that you protect yourself, your future and that of your family during this process.

    • Seek trusted legal, financial and personal counsel to help consider the long-term impact of decisions being made
    • Separate your finances and get the bills sorted out to keep from damaging your credit. Make credit card balances a priority.
    • Work with your financial advisor and tax professional to minimize tax liabilities.
    • Know your retirement and government benefit options. You could be eligible to receive a portion of your spouse's benefits.

  • Start your new life in the right direction.

    Taking the time to plan for your new life can help make the transition much smoother and ensure that divorce does not derail your financial plan.

    • Get a handle on your finances and debt. Reassess your financial and retirement goals to ensure that they align with your short - and long-term goals.
    • Update fiduciary and beneficiary information. Immediately update your will, estate plan documents and beneficiaries information on insurance policies and retirement plans.
    • Establish your new identity. Make your name change official. Notify your employer and all provincial and federal agencies.

Related Resources

The most widely recognized financial planning designation in Canada and worldwide, the Certified Financial Planner® designation provides assurance to Canadians that the design of their financial future rests with a professional who will put their clients’ interests ahead of their own. CFP certification is considered the standard for the financial planning profession worldwide. CFP professionals have demonstrated the knowledge, skills, experience and ethics to examine their clients’ entire financial picture, at the highest level of complexity required of the profession, and work with their clients to build a financial plan so that they can Live Life Confidently™.