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Money issues to consider during a divorce

There are many reasons why couples sometimes end up separating. Perhaps the most common factor, however, is money. Financial issues can cause a lot of strain on a marriage, and they are one of the top reasons for getting a divorce. Unfortunately, money troubles do not end when a pair decides to split; there are many fiscal choices to be made during a divorce, including some that people rarely consider.

An American expert on divorce cites four key areas of financial consideration for soon-to-be ex-spouses. The first is the division of assets. Large assets, such as the matrimonial home, are typically divided equally in Ontario, in value if not in physicality. This still leaves all the household goods and assorted holdings. If there was no pre-existing marriage agreement, all these items will have to be sorted out.

Second on the list is the division of debts. Debts, like assets, are communal property in a marriage and are also shared in a divorce. Debts can be settled with proceeds from the sale of assets, shared, or perhaps swapped in exchange for particular assets, such as taking over payments on a boat with the agreement that ownership of the boat goes to that person.

Taxes and children round out the list, and while not all couples have the latter, they certainly have the former. There may be capital gains to be reported and paid if a home is sold, and any spousal or child support payments will also impact one's post-marriage tax situation. And whichever parent takes custody of the children will have a host of expenses of which they will now bear the brunt.

These are just some of the wrinkles that need to be ironed out before a divorce is finished in Ontario, and life can continue. While they may seem daunting, if handled correctly, the decisions made now might help make life easier in the end. The assistance of a family law firm might be the best way to proceed, whether a couple chooses a collaborative approach, or if an individual needs representation for a litigated divorce.

Source: goodmenproject.com, "4 Top Money Issues In Divorce", Colin Amos, Oct. 24, 2016

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