This Economy and Divorce

by Eva Sachs CFP CDFA

I have been trying to figure out if today’s economic climate increases or decreases the chances of couples divorcing.

Money issues can be the main cause for divorce for many couples. When the financial situation around us changes as dramatically as it has recently, this may cause people to think differently.

The overall division of net family property changes dramatically if your investments and retirement plan took a hit in the market downturn. You may have much less to split and wonder what the impact that has on your future settlement. You may choose to wait until the markets recover before separating.

You may be contemplating divorce but consider delaying making any moves as you worry about the potential price you may get for your home and even the time it may take to sell your home in this real estate market environment.

On the other hand, you may see your personal situation worsening and the pressures and challenges on your marriage making it just too difficult to continue.

Here are some things to consider if you are contemplating divorce in these difficult economic times -

If you are buying your spouse’s portion of the matrimonial home, you may be getting it at a bargain price as real estate prices reach low points. However, it may be much more difficult to get financing.

If your spouse’s income has been reduced or bonuses eliminated, support payments may be quite different. However, your own income may also have changed.

If you are in business together with your spouse, you may have to find a way to continue to work together until the climate improves in order to sell your business or find a buyer to take over.

In any case, if you are contemplating divorce, you should look at your own unique financial situation and budget to keep you’re spending in line for now.

If divorce is inevitable, you need to realize that the divorce process itself can be expensive and need to consider alternative choices available to reach a settlement agreement.

This economy is forcing couples to look at alternatives ways of creating a separation agreement that allows for creative solutions. Working closely with divorce professionals that think beyond strictly “legal rights and entitlements” may hold the key to the best way to deal with divorce in this economy.

Collaborative Team Practice is an alternative approach to divorce that may be best suited to these times. The team model in collaborative practice has collaboratively trained lawyers, family professionals and financial professionals in place from the beginning.

This is a refreshing approach to resolving divorce issues that is straight forward and acknowledges the need couples have to deal with the legal, emotional and financial issues in a collaborative and unique way. This team approach allows each professional to make their own contribution from the beginning which makes the process much more efficient in the long run leading to the creation of more “enduring” settlement agreements.

Let me know if you want more information about the Collaborative Team Approach.

If you’re thinking about divorce, take a look at your own priorities and focus on what is important to you. By doing so, you should be in a better position to decide whether and when you’ll move forward to divorce.

Whether you decide to divorce or not, in these difficult economic times, getting solid financial advice is more important than ever.

P.S. I would love to hear from you regarding your thoughts about divorcing in this economic environment. Email me at esachs@womenindivorce.ca

I'll share your comments in an upcoming newsletter.

A conversation with our panel of divorce professionals about supportive approaches to divorce

TORONTO
Sept. 24th 2009

For more
information
click here

Read Eva's insights and stories
in her new
"Divorce Talk Blog"

Eva Sachs, CFP, CDFA
Phone 416.232.1540
Fax 647.436.3828
Email esachs@womenindivorce.ca
www.womenindivorce.ca