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A divorce during COVID: How can you avoid the financial costs?

The emotional side of a divorce is already difficult. The financial toll can be devastating.
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COVID-19 is taking a toll on Canadians beyond worrying about personal health and straining our health care system. There are also ongoing financial and emotional impacts as well. Financially, millions of Canadians are grappling with job and financial insecurity. While more than 50% of Canadians have reduced household spending, most people are experiencing dwindling savings.  

Divorce was already on the rise. According to Statistics Canada, the divorce rate has been growing steadily. In fact, the divorce rate is expected to rise as people age. Couples over the age of 55 may find themselves entering what’s referred to as the grey divorce zone

Getting help to navigate the financial side of divorce

The emotional side of a divorce is already difficult. The financial toll can be devastating. You can avoid financial disaster with some work and planning. 

Even in ordinary times, a solid financial plan go awry during a divorce. During this pandemic, working with an advisor can help reduce financial stress. By providing a plan and support through the process, an advisor can help make the process easier. 

It’s not unusual for family lawyers to encourage their Clients to work with a financial advisor during the process. Advisors can help gather and provide key details needed to move through a divorce. A qualified advisor is able to prepare a financial plan showing the impact of the proposed division of assets

Throughout the process, an advisor can help provide support and services that can save you time and money, including: 

  • Providing key details about individual and joint assets and debts before you meet with lawyers and mediators.
  • Working with each spouse to create short-term budgets that track spending during the separation. 
  • Looking toward the future with a new long-term budget that focuses on your post-divorce needs. 
  • Fostering cooperation with a plan to cover shared bills and expenses during the separation

An advisor can also help gather the information that lawyers need about dependents, beneficiaries and assets

Getting ready for what’s next

If you’re going through a divorce, take the time to focus on your financial goals for this new phase of life. An advisor can help you develop an action plan, so you can reach the best solution for your future.

For more information on planning during a divorce, click here or contact Devine & Associates Financial Services Inc. at 519-780-1730.