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Without careful planning, a divorce can cause financial disaster

The financial impact of ending a marriage cannot be overstated. While no professional advisor would recommend staying in a bad marriage for the sake of money, anyone about to go through a divorce in Alberta should be aware of the monetary hit that may be coming. For proof, one only need look at the numbers released by a Canadian insolvency trustee.

A survey conducted by the trustee's firm found that 14 percent of respondents, who were or had been insolvent, cited the breakdown of their marriage as the leading cause. For those aged 40 to 49, the number shot up to 20 percent. The trustee suggested that divorce itself is not usually the sole cause, but it can exacerbate an already difficult financial situation.

Potentially unforeseen expenses include start-up costs for living alone. If one is not remaining in the marital home, it will be necessary to find a new place to live. This may mean coming up with first and last month's rent, plus moving costs. Living alone also means a single income is now paying for things that may have been split before, such as utilities and groceries.

One's choice for legal representation can also make a difference to the financial picture during and after a divorce. Anyone who is amenable to the idea of pursuing an out-of-court settlement could save on legal fees. For those who cannot avoid court, a skilled Alberta lawyer can help a client pursue a fair settlement. Making solid plans now could make the difference between a new beginning and rocky start.

Source: globalnews.ca, "Heartbroken and bankrupt: Why divorce can destroy your finances", Erica Alini, April 17, 2017

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