Divorce is a financial strain on your family because it divides you and your spouse’s cumulative assets. In this economy, where assets are quickly turning into debts, it is critical to understand the financial consequences of a divorce and how to make the most out of its aftermath. A divorce divides one family unit into two separate units. When one spouse moves out, there will be one more mortgage or rental payment to make. Having 2 separate families also means twice the living expenses, including, but not limited to: health insurance, car payments, and all the children’s needs in the separate households.
Debt loads start to grow when:
- you have been living beyond your means even before considering divorce
- one of you have lost your job due to downsizing and have been depleting savings to cover living expenses
- you may be already living apart and dealing with additional expenses of second home
If you have accumulated substantial debt and are facing divorce, you will be dealing with how to divide the debt, rather than the equity. In the unstable economy, where your stocks, RRSPs, savings, and assets are quickly eroding, use the combined services of a certified divorce financial analyst and mediator to focus on a solution that works for both spouses.