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RISING WOMEN EXPERT
ADVICE...
I hope I never have
to go through a divorce but how can I protect myself, just in case I become
another statistic?
The first message is GET EDUCATED! You need to keep aware of what is going
on with all aspects of your finances. You do not need to know the details,
or even deal with the transactions, but being aware is critical.
Often in relationships one person naturally takes the responsibility of the
finances. However, you need to know that you are on the hook for just about
everything financial that goes on during your marriage. This is something
you simply cannot take that for granted. Know what you have and why. You
should be aware of what is taking place each month, and if you don’t, ASK!
One of the biggest issues I hear is the issue of DEBT. Yes, you are
responsible for half your spouse’s debt (with a few exceptions). If you are
joint on an account and debt is becoming an issue, the account could be
frozen. If you are asked to sign a document, know what you are signing and
why. I have seen where a “line of credit” is set up using the matrimonial
home and the spouse has no idea what the money is being used for. Then a
separation happens and yes, you are responsible for half that debt. Was the
money used by both of you? Perhaps not. It often does not matter. You should
seek legal advice, as there may be extenuating circumstances.
Most people have heard of a “pre-nup”. Have you heard of a “mid-nup”?
Probably not, as that is the name I have given it. This might be considered
if one person wants to save for retirement yet the other sees no need. Why
not get a contract drawn up outlining what you both agree on? Think of it
this way...potentially you could give up half your investment upon
separation. This may become an issue so you should seek advice.
Often just dealing with a financial planner can help as you can get an
objective third party opinion. If you develop a plan, you can deal well in
advance with the issues of goals, cash flow, debt, and much more. Planning
can actually save a marriage from a breakdown. Money during every divorce
can be a huge issue, so why take the chance?
The Bottom line: Know what you have. Get involved. Ask questions. Get
educated. Have a financial plan.
For more expert financial divorce advice, contact Wendy Olson-Brodeur
at The Financial Divorce Specialist at 403.873.0292. Visit
www.tfds.ca for upcoming
seminars. |
