Couples in Ontario whose marriages are ending in divorce need to prepare themselves for the financial ramifications of the process. This includes both the cost of the divorce and the impact of the loss of assets that were jointly shared.
The Federal Divorce Act governs divorce in Canada, and asset division is governed provincially. Asset division is decided according to a fixed formula and not based on how either spouse behaved during the marriage. Child custody is the only aspect that might be affected by this. The ages of the children and where they live, the income of both spouses and the length of the marriage are all factors in how property is divided.
Few divorces in Canada end up in court, and the ones that do will cost the couple more than $50,000. A contested divorce that does not go all the way to court has an average price tag of $12,875 while an uncontested divorce averages $1,353.
The loss of assets is not insignificant, however. Couples who owned a home together may not be able to afford a comparable property once they are single again. On average, individuals are in their 40s when they divorce, so they often will have already spent a significant portion of their lives building assets.
Therefore, individuals who can begin to get a financial picture of their lives post-divorce as early as possible will be able to start budgeting accordingly. A lawyer and financial professionals may be able to assist in planning for divorce. Even an amicable split will change the financial picture for the individuals involved.
Source: Financial Post, “Tallying up the financial repercussions of getting a divorce“, Jason Heath, July 07, 2014