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RISING WOMEN EXPERT ADVICE...
Where do you start when considering separation or divorce?
Going through a separation or divorce can be extremely stressful.
You are forced into a situation where you are making financial decisions
while under great emotional duress, and are unable to think clearly about
your future. Unfortunately, the mistakes you make will have lasting
consequences for you and your family.
You need to start by gathering as much information from as many sources as
possible. Basically, you’ll need any document that records the assets and
liabilities you have, and how and where you have spent your money. Collect
documents such as mortgage papers, city tax assessments, utility bills,
pension information, company benefit booklets, RSP statements, brokerage
accounts, health and dental plans, and insurance policies. Collect
information from your credit card statements and make a copy of these
statements; next to the charges write the purpose of the charge. Review your
bank statements and identify what the expenditure was for. Also collect your
credit reports. For yourself and for your spouse, this is a must to verify
liabilities, credit score, mistakes, and potential hidden accounts. Be sure
to obtain copies of loan applications and automobile leases. Keep in mind
that passports are a good source of information about travel. Gather the
last five years of actual filed tax returns from the government rather than
using your working copy. Don’t forget Frequent Flyer and Membership Reward
Point balances as they are considered assets. Tough and often inaccurately
represented categories are things like cash/ATM withdrawals, gifts you
purchased, and expenses paid from a business account. Be sure to remember
the corporate or business credit-card records. “Explanation of Benefit”
statements from your insurance company can help to pin down the elusive
category of “unreimbursed medical”.
Once all your information is gathered you need to create a “Net Worth and
Income Statement”. You will also need a “Cash Flow and Expense Statement”.
The bottom line is this analysis may be the most important step you take in
asking for and justifying paying or receiving support requests. It requires
analysis that is “bullet-proof”. Don’t be afraid to call for professional
help in creating these documents. Specialists can help you to reconstruct
and prove your marital standard of living -- which could make all the
difference to the amount of support you’ll be receiving or paying.
For more expert financial divorce advice, contact Wendy Olson-Brodeur,
FDS, CFP, CSC at 403.873.0292. Visit
www.tfds.ca to learn more
about her specialized services. |
