Many people know that splitting from a spouse or long-term partner can be a financial strain, but what exactly are the issues that can arise in these cases? It's a good idea for Ontario individuals and couples to consider financial issues related to separation and divorce prior to making the choice to end a marriage. This preparation can eliminate some of the difficult surprises later on when it comes to assets and money.
One of the first issues that arises in a separation is the assessment of financial assets. For families with multiple bank accounts, inheritances or businesses, this process can get complicated. Retirement accounts and pensions will also be on the table. Listing out all these assets and deciding who has a right to which amount can be stressful, especially for those who are not prepared for this process.
Splitting real estate is another complication many people face in negotiating separation agreements. For example, properties purchased prior to the marriage may be considered differently than those purchased after. The distinction of a "marital home" and the distribution of the mortgage are additional issues that may require some effort to resolve.
There are many additional financial issues that may be raised during a separation or divorce. These can include the distribution of debts, tax implications, child support and alimony. Legal guidelines exist for couples who are unable to come to an agreement on one or more of these issues. For this reason, it is important to work with an Ontario lawyer when drafting and signing a separation agreement.