Ontario Family Law Blog

Technology and Family Law Conference

Brian Galbraith — Wed, 05 Jun 2013 08:49:07 -0500

I am honoured to be presenting at the Technology and Family Law Conference live web cast which will be aired on Wednesday June 12, 2013 from 12 noon until 1:30 pm. This is hosted by the Law Society of Upper Canada. The other presenters are Russell Alexander, Andrew Feldstein, Lisa Gelman and Steve Matthews. This is an amazing group of talented professionals.

Our presenters help you take the next step in integrating technology in your family law practice. Discover how new software and social media can further enhance your efficiency, client service, and marketing capabilities.

The webcast is free and only 1 1/2 hours. To register visit http://ecom.lsuc.on.ca/cpd/product.jsp?id=FINCLE13-0060500

Learn more on twitter @LSUCCPD #tech

Wiping Away Credit Debt After a Financially Messy Divorce

Brian Galbraith — Fri, 24 May 2013 16:26:08 -0500

The total amount of revolving debt in Canada is more than $600 billion, and that doesn't include secured debt, like mortgages and car loans. When you carry a chunk of this debt on top of the expenses and difficulty of a divorce, you're paying interest every month just for the privilege of continuing to borrow the money. Make your financial footing more solid by evaluating your debt and taking concrete steps to get rid of it.

Manage Your Credit Report

When you have a lot of debt after a divorce, your credit report is a bit of a mess. It may be littered with late payments, collection accounts and credit cards dangerously close to their limits. Get a copy of your credit report for free each year from Experian, Equifax and TransUnion through AnnualCreditReport.com. Not only will this give you a full picture of what you owe, but you can also see if your accounts are being reported correctly. Disputing errors through the credit bureaus that provided the erroneous reports can help boost your credit score.

One of the main steps to restore your life and start over is to get out of debt and improve your credit score. This not only makes borrowing in the future less expensive, but can also help you get lower auto insurance rates and have an easier time renting a home. For newly separated or divorced people suffering from bad debt, renting an apartment or buying a car doesn't have to be as difficult as you might think. For example, former buy-here-pay-here dealerships offer auto loans with various repayment plans. Making payments on time will slowly but surely improve your credit score.

Create a Detailed Budget

Once you know what your debts are, it's time to make a plan for how to make consistent payments on them every month. Take full stock of the money coming in each month, then create a budget to plan how you will spend it. Start with necessary payments, like your housing, utilities and all of your debt payments. Then allocate any remaining money to variable expenses (gas, groceries) and luxuries (new clothes, entertainment and vacations). When you have a plan, you won't need to keep going into more debt each month to make ends meet.

Change Your Lifestyle Perception

Your lifestyle may drastically change after you're divorced, so changing your perception and expectations may be a necessary part of getting out of debt. If you embrace a frugal lifestyle and enjoy the good you do have in your life, it's a lot easier to forgo those things you see others getting that you can't afford. In the book "Living Well with Bad Credit," the authors encourage you to realize that the good life is subjective, and you can be perfectly happy even when your credit is horrible.

Use Extra Money to Pay off Debt

When you end up with unexpected money, don't spend it on things you don't actually need. Instead, pay off debt to lower your balances and reduce your monthly interest charges. For example, CBS reports that the average tax refund is $3,000. Putting this toward the typical credit card bill will save you over $500 on interest in the next year. If you get a raise at work, put that extra income toward debt repayment rather than expanding your lifestyle. You can also scrape together extra money by clipping coupons to save on grocery bills or foregoing usual luxuries like your morning latte. Putting all of this money toward debt repayment will help you get out of debt sooner.

Conclusion

Most people who go through divorce have a difficult time adjusting to the new financial reality. It's normal. The good news is that most can recover from it. The key is to be focussed on getting rid of your debt and living within your means. Winning the lottery is also helpful.

Children and Divorce - How You Can Help Your Child Adjust

Brian Galbraith — Fri, 19 Apr 2013 10:46:19 -0500

A child of divorce writes on how to help your child during divorce. What better source? Thanks to Melissa Farrell a freelance writer who lives in Kansas for her insights.

Speaking as a child of divorce, every situation is different. My parents were high school sweethearts and were together for over 10 years before they decided to call it quits. And when they finally divorced, they tried their best to make sure it didn't affect me negatively. I was too young to really remember anything, at four years old, but I do remember they were always nice to one another around me.

So how can you help your child adjust to divorce?

Explain the Situation

If at all possible, both of you should sit down and explain in the simplest, most straightforward way why you decided to get divorced. Explain that it is in no way the child's fault, but that you don't work together any more. A possible conversation could be "Mommy and daddy fight all the time, which isn't good for anyone. We've decided to live in different houses and not be married any more." Calmly answer any and all questions your child might have and reiterate the fact that it was not his or her fault and you both still love your child.

Throw Around the Idea of Therapy

Sometimes children feel more comfortable expressing their feelings to a third party, someone who will listen to them and not judge. Find someone who can help them express their feelings and work through their struggles. It may be your pastor, a family coach or someone else who is trained to work with children of divorce.

Don't Let Your Child Be the 'Middle Man'

Although parents know it's not healthy to put the child in the middle, sometimes they just can't seem to help themselves — they roll their eyes or sigh when they talk about their ex, they make negative remarks about the other person in the kids' presence, they ask the children to relay messages to the other parent. DON'T be like those people.

Allow Substantial Time At Both Houses

As a kid, I lived with my mom during the school year and visited my dad once a week and stayed with him every other weekend. During the summer months, I lived with my dad and saw my mom once a week and every other weekend. Every situation is different, but making sure you allow equal time between the both of you is important. Split school breaks and holidays. If it's not your weekend but there's a fun event going on you think your child would love, talk it over and switch weekends. Communication is key.

Avoid Fighting

Children remember when parents fight, argue and yell at one another and it mentally effects them. Although seeing parents fight helps the child understand why the parents can't stay together any more, it is hard on them when they're surrounded by it all day long.

Thanks to them I have a healthy outlook on relationships and marriage and I never saw divorce as this horrible monster. But there are many out there who have the opposite feeling, especially in children who are old enough to understand the situation. Divorce is not easy on anyone and children often feel anger and resentment towards their parents unless you commit to helping your child through your divorce like my parents.

5 Mistakes Made in Divorce Proceedings

Brian Galbraith — Mon, 15 Apr 2013 15:47:39 -0500

Today's guest blogger is writing about the 5 mistakes made by people who are in family court. While the advice is sound, it reinforces to me how undesirable it is to be in Family Court. It really is an awful experience. But, alas, if you are in Family Court, heed the following good advice... or better yet, find a lawyer who specializes in Collaborative Practice and get out of the litigation process.

At Galbraith Family Law, all of our lawyers are trained in Collaborative Practice. We do our best to keep you out of Family Court and support you to resolve your divorce issues efficiently, minimizing the pain. Thanks to Ken Myers for the following article.

Although it's never our intention to file for divorce when we say our vows, sometimes people just can't be together in matrimonial bliss. Sometimes, the divorce proceedings can get a bit messy which could cause great strain on one or both parties. Of course, this all centres on why the divorce is happening in the first place.

Too many times have the actions of one during a divorce severely crippled the other financially and/or emotionally. When talks of this stressful time become a serious situation, there are things you need to do in order to prevent your significant other from taking advantage of the situation.

1. Financial Evidence - One of the most important pieces of evidence in a divorce proceeding could be the financial activities of your household as a whole. Any record and receipt of monetary transactions and bank accounts should be copied and safely stored. Any amounts in joint bank accounts should be closely monitored and recorded as well as one spouse may have to pay the other as per the final judgement.

2. Settlement Proposals - During divorce proceedings, a spouse's lawyer could provide a settlement proposal in order to reduce the time spent in courts which can increase your budget for your legal fees. Out of anger or frustration, many of these proposals are thrown out by the party for a variety of reasons. When dividing the assets, you should expect to lose something. Dismissing these proposals too quickly could cost you more in fees than you would have lost in the proposal in the first place.

3. Children as Weapons - Many times, a spouse will threaten the other to deny visitation to the children during a divorce. What you need to realize is that this is an empty threat that will not be upheld if you are indeed a good parent. Regardless of how much the threat may cut you to the bone, keep your cool. During the proceedings, the courts will determine if that threat has any validity. Unless you are a parent who constantly endangers your child, there is absolutely nothing to worry about. Let the spouse blow off as much steam as they want.

4. Debts - Sometimes, dividing debts accrued by a couple can be a difficult task to manage. Neither one of you want to pay the bills of the other. A compromise may need to be acknowledged or the courts may assign what is paid by whom. This could greatly depend on the income of each spouse and the total number of bills. You will need evidence that shows a specific bill would have been accrued by your spouse regardless of your marriage. At any rate, the bills will need to be paid and someone will need to pay them.

5. Life After Divorce - Before you have committed yourself to a divorce, you should have taken the time to evaluate if you are able to survive on your own or not. You should never assume anything and having a plan for re-building your life can save you a great deal of trouble in the short-term. The most important aspects to consider are home and income.

Divorce can feel like hell on Earth to some and a blessing to others. In order to prevent the former, you should always protect yourself the moment a divorce is inevitable. If the situation is created from a bad set of circumstances, timing could be very important. Don't let your significant other take advantage of you.

Guest Author Bio:

Ken holds a master’s in business leadership from Upper Iowa University and multiple bachelor degrees from Grand View College. As president of morningsidenannies.com, Ken’s focus is helping Houston-based parents find the right childcare provider for their family. When he is not working, he enjoys spending time with his three children and his wife.

Build Trust in Divorce and Avoid Family Court

Brian Galbraith — Sat, 02 Mar 2013 14:12:58 -0500

Trust is essential for every relationship and is often damaged when people are getting divorced. It can be damaged many different ways. An affair, a lie or a betrayal can damage trust. Trust may also be broken when people change and no longer understand each other. They just grow apart.

In my life, I know how disorienting it is when I have lost my ability to trust someone who I once trusted implicitly. Equally uncomfortable is when someone no longer trusts me. If the relationship is important, I feel frustrated and want desperately to repair the relationship and the loss of trust. Without trust, we can't have a relationship.

Have you had a loss of trust in your marriage? Maybe there was an affair. Maybe you feel that your spouse has given up on the dream you once shared. Maybe you feel like you or your spouse have done or said too many mean things to each other that you have become like strangers to each other – strangers who can’t trust each other.

Some of our clients want to go to Family Court because they don’t trust their spouse and can’t imagine negotiating an agreement with them. Family Court can’t ensure your spouse will become trustworthy again and you are giving up the power to make decisions about your life to the judge. Court is slow, costly and the results are often difficult to predict. Often, the court process itself increases the animosity of the parties. Court is the place of last resort. Family Court won’t solve the trust issue.

If Family Court is not the answer, is there a better way? How can we build sufficient trust that our clients can negotiate an agreement, keeping the power to decide important issues, rather than go to Family Court?

I came across some interesting research that is helpful. You can use Confidence Building Measures to build trust. You offer unconditional and unilateral gestures of goodwill to your spouse so that your spouse can see you are genuine about wanting to negotiate a deal.

Our lawyers know how to help you to develop and offer effective Confidence Building Measures so that you and your spouse can engage in negotiations. It won't save your marriage but you can build sufficient trust that you can begin to negotiate an agreement and avoid the pain of Family Court. We can help.

The "Roll" of RRSP's in Your Separation and Divorce

Brian Galbraith — Fri, 25 Jan 2013 11:20:37 -0500

Registered Retirement Savings Plans are the main savings vehicle for many Canadians, especially those who don't have a pension through their employment. As a result, upon separation and divorce, RRSP's are part of the property settlement.

Our guest blog this week is by Sandra Ramos, a well known financial advisor in Barrie, Ontario. She has great advice about how to deal with RRSP's during your separation and divorce.

For most couples, separating your assets can be the most challenging event of your separation, not only from the standpoint of “equalization” but also from a “taxation point of view”. RRSP’s, Registered Retirement Savings Plans add complexity to the equalization process due to their inherent tax implications. If you remove funds from your RRSP you will pay tax on the withdrawal and the amount will be added to your income in the year of the withdrawal. You can roll your RRSP’s to your spouse during the equalization process without immediate taxation, however, should your spouse use those assets to pay for legal fees or to get back on their feet financially, there will be taxes when withdrawn. This is an element that is often times overlooked during negotiations simply because the current dollar value is the only information being considered and not the net after tax effect. It is important if you are going to receive some part of your settlement in the form of an RRSP roll over from your spouse, that you tax the potential future tax implications into consideration.

Example if your spouse has $ 10,000 in an RRSP that he or she would like to roll to you as equalization payment for other property; you must adjust for taxes. If your personal marginal tax rate annually is 20% this RRSP asset should only be viewed as $ 8,000 after tax. Receiving assets inside an RRSP can be very beneficial to the recipient when handled and valuated properly, but it should not be viewed in the same way as cash or other property.

The involvement of a Financial Advisor or Accountant at this point in the equalization process is very important to ensure there is a thorough understanding of the taxation issues for your unique scenario. The collaborative process involves all of these elements for you, to ensure you understand the implications of the decisions you are making both from an asset valuation and forward taxation point of view.

I would love to hear some of your stories and thoughts regarding this topic and if you are interested in learning more about how I can assist you, please do not hesitate to give me a call at 1-866-949-1027 ext 235 and visit my website at www.sandraramos.ca.

Sandra Ramos, CFP

Senior Executive Consultant

Investors Group Financial Services Inc.

138 Commerce Park Drive

Barrie, Ontario L4N 8W8

Separation Agreements: The Devil in the Details

Brian Galbraith — Tue, 22 Jan 2013 10:04:34 -0500

There is a saying... "the Devil is in the Details".... meaning details that are overlooked can cause problems later. No doubt this is true when drafting a separation agreement. Attention to detail is essential.

The top ten big issues that need to be resolved are:

Where will the children live?
How much time with the children spend with each person?
How will holiday time be scheduled with each parent?
How much child support will be paid?
Are there any extraordinary extracurricular activities that should be shared costs?
Is there an obligation to pay spousal support? How much? How long?
How will the property be divided?
Is there an equalization owed by one person to the other to equalize the property division?
Do we need to maintain life insurance to protect the support obligation?
Should the extended health care insurance coverage continue for everyone?

Robert Hues of Ohio wrote an excellent blog where he lists some of the many details often missed in separation agreements. Here is Robert's list:

Garage door openers
Gate remote controls
Extra keys to car and house
Security codes
Hotel credit card and airline points
Utility and other deposits
Tax and insurance escrows
Car tag credits
Overdrafts on joint checking accounts
Dates to carry through insurance coverages
Attorney’s fees paid with joint funds
Real estate escrow account refunds
Important days not addressed in the Court’s Parenting Time Order
Season ticket rights
Country club membership and club access
Storage unit details
Dividing and copying family photos
Copying documents, pictures and files from the family computer
Providing change of address notification to Bureau of Motor Vehicles, support enforcement agency, credit cards, magazines, post office, etc.
Cell phone account restructuring
Review of auto insurance coverage
Close joint credit cards
Update estate planning documents and review beneficiary information
Stock options
Future health insurance coverage and cost

We could add to Robert's list indefinitely. Here are some more details to consider:

How and when will new partners be introduced to the children?
How will we celebrate the children's birthdays?
Will spousal support continue to be paid if the recipient gets married or lives with someone?
How will we share the costs of post secondary education?
Who will hold the passport and health insurance cards of the children?
What happens if one spouse wants to move far away and we have children?
Can both parents attend the sports events of the children and parent/teacher interviews together?
How will we divide the books and CD's?
How do we divide heirlooms from one side but given to us during our marriage?
Will the children be able to transport their items between homes?
Who pays for recreational ports equipment used in both homes?
Who gets the car seat and children's furniture and children's toys etc.?

The list of details is endless. Although it is great idea to deal with as many details as possible so as to minimize future conflict, some issues will come up that you did not discuss. Perhaps the best we can do is develop some principles for behaviour and resolving conflict. Here are some ideas:

When issues arise, we will do the following:

We will treat each other the way we would like to be treated... even if it may not always seem to be reciprocated.
We will not attribute negative intention to the other person but rather assume the best.
We will always discuss issues respectfully and politely.
We will not allow ourselves knee-jerk responses but rather will "sleep on it" before responding.
We will not engage or expose the children to our disagreements.
We will negotiate respectfully. No interruptions. No yelling. No name calling.
We will fully disclose all documents and information during negotiations.
We will both compromise.
We will seek to meet the core concerns of both parties.
We will not take advantage of mistakes by the other party.
We will not sweat the little stuff.

Paying attention to the details is an essential skill for a family law lawyer because one of our mandates is to minimize future conflict for our clients. Our lawyers will work with you to help create a separation agreement that meets your needs and keeps the devil in his place.

Handling the Holidays after Divorce

Brian Galbraith — Tue, 18 Dec 2012 13:48:16 -0500

Christmas is for children but when Mom and Dad have separated or divorced, it can be a difficult time. I remember how difficult it was my first year after separation. I was devastated. Now, many years later, we schedule our "Christmas" any time between December 22nd and December 28th. The actual date does not matter... it is the joy of spending the day together.

Here are links to two past blogs I did about the holiday season Part 1 and Part 2.

Our guest blogger, Marvin Hoffman from the Houston, Texas law firm Holmes, Diggs and Eames, PLLC offers some very good advice for parents.

The holidays can be a difficult, anxiety-filled, and frustrating time for anyone, regardless of your situation. It’s a time when a lot is expected of you, from buying presents to traveling from place to place, and it seems as if there is less time to get it all done. However, after going through a divorce, the holidays can be even more difficult, particularly when children are involved. Depending on a divorced couple’s custody and/or visitation agreement, the holidays can be an especially complicated time, as parents are trying to juggle who gets the children during which holidays, how long they have them, and what to do about the myriad of other holiday arrangements that need to be made.

Making it through the holidays as a divorced parent doesn’t have to be as difficult as many make it sound, though. With careful planning and taking a few tips into consideration, a divorced parent can more thoroughly enjoy the holidays and make them fun for the kids.

Tips for Divorced Parents

You want to do more than just survive the holidays after a divorce – you want to enjoy them fully. Although being a divorced parent can certainly put more pressure on you, making this a harder task, it’s not impossible. In fact, you may be able to make the holidays much easier to handle by keeping the following tips in mind:

Make very detailed and specific plans – whatever you and your family are doing for the holidays, try to make the plans as detailed as possible so arguments and problems do not arise, particularly with your ex-spouse. The more planned you are, from the time you’re leaving for a vacation to exactly which days and times you’ll have the children, the more you’re likely to reduce potential frustration and fighting.

Plan well ahead of time – by making plans as far in advance as possible, you can allow your ex-spouse, children, and family to plan better and more accordingly, which also helps prevent more arguments from arising at inopportune times. This way, you can also make arrangements with your ex-spouse and vice versa.

Find out what’s most important – decide what holidays, traditions, and arrangements are most important to you. This way you will know what you can compromise on and what you should ask for.

While these tips are not the only ones that can help you through the holidays (and if you are looking for more, consider talking with a Houston divorce lawyer about tips and options), they can dramatically decrease your frustration with the holidays, helping you to enjoy your family and loved ones during this special season.

If you are in the Simcoe County, Muskoka or York Region, you can get good advice from our lawyers. Here is our website and our contact information. We can help you get it sorted out... so you can just enjoy the holiday season.

Helping Children Deal with Divorce

Brian Galbraith — Wed, 05 Dec 2012 15:02:58 -0500

I have four children and my wife is pregnant. Children are the focus of our lives. The first three are from my first marriage. I remember feeling very worried about how they would do when we separated. I did some research at the time and did my best to make it work for them. I can report that they are thriving in spite of their parents' divorce.

Nancy Parker is this month's guest blogger. She offers some excellent advice for parents going through divorce so you can help your children thrive too. Below is her article and here is her website:

There are a lot of innocent victims in a divorce. Many times that includes the divorcees as well as the family and friends but if there are children involved they are the most innocent victims of all. They tend to take on most of the blame as well. I don’t know why but children almost always think that the demise of mom's and dad's relationship is their fault. In their minds someone has to be at fault and if no one else will take the blame they will. It could never be mom or dad's fault, because they are perfect.

When I was very small I thought my mom and dad were perfect, that they knew everything, and that they would never allow anything bad to happen in my life. As I got older I kept seeing things to make me question those ideals. It was truly devastating for me to find out that my parents were not superhuman. After the initial shock of finding this out I learned to love them for who they were. Because despite the fact that they weren’t perfect I realized they loved me the best they knew how and that they were doing the best that they could.

It is hard for children to understand that their parents are just people, people who do not always have it all together. Somehow in their young minds they think that to become a parent means you are some kind of a superhero or that you are closer to God than other people. The reality is far from that. Many parents not only do not have it all together but do not even know where the “all together” store is to buy it! As you have all heard many times before, parenting is the most important job anyone could have because you are molding other lives and there are absolutely no degrees required.

Then divorce comes and lands smack dab in the middle of our already not great parenting. We are struggling to deal with a marriage, our children, a job, extended family, and friends, and then along comes divorce. We are still dealing with all those things plus a failed marriage, grief, hurt, anger, resentment, fear, anxiety, and on and on. Where does this leave the children? People say kids are resilient and they will bounce back. If things are handled right this is a possibility but there are no promises. How many of us actually handle it right when we ourselves are so emotionally compromised? But this is what we must do because we love our children.

As I stated above about my folks, when I realized that my parents were not perfect but I knew they loved me and were trying the best they knew how, I learned to love them for who they were. Here is the key to helping your children get through a divorce: love them the best way you know how and talk to them as much as possible about what is going on. Not the gory details mind you, just give them something to help them understand. If you do not then they will come up with unbelievable ideas of their own usually pointing the blame at themselves. This is not where the blame needs to rest and we need to let them know.

If you are overwhelmed with the divorce, if it is not a civil time between you and your soon to be ex spouse then you need to appeal to the other parent based on their love for the children in keeping it civil. If that is not possible then you should get help from family and friends. If you are passing the children back and forth between each other then send a trusted family member or friend to deliver the children or be at the door when the other person comes. If you need some time to sort out your thoughts then you need to talk to your children and let them know how much you love them and tell them you need alone time to think. Ask a family member or friend that the kids know and trust to take care of them for a few days. Keep things as normal as you can. Try not to turn the children’s lives upside down because yours is. It is hard enough for them to lose the day to day presence of one parent so do your best to remain calm and mature for their sake. After all, we are the adults. We are teaching our children self control so we must practice what we preach.

Keeping children on the same schedule is important. They need to be able to see the same friends and family members just as always. If they are close to a member of the other parent’s family then do not take that away from them unless that family member is not handling the divorce well. As much as it depends on you however, do not take these relationships away from the children. Try your best to keep things status quo in their lives. Above all keep letting them know how much you love them. But in turn, do not start giving them “things” instead of your time and love. They do not need the things; they do need you and the other parent. Whatever you do, do not use the kids as leverage to manipulate the other person. These are your children, not pawns in a game of chess.

Counseling is always a good idea if you think things are not going well with your children. Family counseling is a good way to start so that you can all talk about how you are feeling and get some new perspective from an unbiased third party. This is also a good place to express your feelings that perhaps you were not able to sort out when talking to your children at home. It is good if both parents are involved, not at the same time of course but every other session. The children need to know that both of you care about what they feel and that you are both still going to be there for them. If one or all of the children seem to be guarded or unresponsive then you can have the counselor try a one on one to see if they can get to the bottom of their feelings. Sometimes other family members can help the children to express how they feel. Once you have found out how they feel do not respond in a defensive posture! They are telling you how they feel, it is not wrong that they feel that way. You can talk to them about their feelings and do your best to alleviate their fears and concerns but do not reprimand them for their feelings. You may never hear another feeling again and these are not the desired results.

Let love be the reason for everything you do. This is from the Bible and is not only spiritual but practical advice for everyday life, not only in a divorce but for everything and everyone. If your main goal is to do whatever you do for the good of others then you are on the right track. Think back how you felt as a child: your anxieties, fears, needs, and desires. What could someone have done to help you? Did you have misconceptions growing up? Sometimes we forget what it was like to be young because the cares of this world strangle that innocent part of our life out. Be kind, loving, and gentle. Treat your children the way you want to be treated. They are people with valid feelings and they will grow into whatever kind of adult you train them to be. Love is the key. Don’t let your emotions cloud your mind so much that you forget who you are. Your children will stick by you and love you all the more if they realize you are doing the best you know how and that you absolutely love them no matter what. Stay strong and hold on. This time in your life will pass and you and your children can grow and be better off than ever before. That is if you do everything you do for their good and with lots of love.

Author Bio

Nancy Parker was a professional http://www.enannysource.com/ and she loves to write about wide range of subjects like health, Parenting, Child Care, Babysitting, nanny background check tips etc. You can reach her @ nancy.parker015 @ gmail.com

Family Law Information in Ontario: New Government Website

Brian Galbraith — Tue, 13 Nov 2012 09:33:37 -0500

One of the most stressful aspects of separation and divorce is the uncertainty.You don't know how much money you will have, how much time you will have with your children and when the pain will go away. When I went through my own divorce, I hated the uncertainty and I am a divorce lawyer!

The government of Ontario has launched a new website for the public that helps to address some aspects of the uncertainty. It is called www.YourOntarioLaw.com. It provides general legal information. One page that I especially like shows the inside of a courtroom.

The problem with the website is that it is so focussed on the Court process. It has only one line about Collaborative Practice which is a way of resolving disputes without going to court. I guess this makes sense since the government is in the business of providing the Court system. It also has very little information about family law.

Other excellent websites that provide information about the Collaborative Process are as follows:

www.CollaborativePracticeSimcoeCounty.com This website provides information including professionals in Simcoe County who practice Collaboratively. It is a great resource.

www.DivorceHappens.ca This website provides more information about Collaborative Practice, comparing the cost to the court process. It includes some great videos, and lists professionals I have helped train in the Collaborative Process throughout Ontario.

www. OCLF.ca This website is our provincial umbrella organization. It has general information about Collaborative Practice.

More Information...

Our firm website offers both information about the various process choices and lots of information about the law. We regularly receive positive feedback about what a great resource it is for the general public. www.GalbraithFamilyLaw.com

Of course, the best way to learn about your rights and obligations is to have a consultation. Our firm of experienced lawyers only practice family law. We offer one hour no-obligation consultations at a substantially reduced rate. You can ask all your questions and get answers particular to your case. Clients feel relieved of the uncertainty after a consultation.

Call 705 727-4242 or email JMcTighe@GalbraithFamilyLaw.com to book a consultation today.

No Child Support for Adult Children Living in the Basement?

LexBlog — Mon, 29 Oct 2012 16:01:20 -0500

More and more children are no longer able to leave home when they become adults, or are returning home to live with their parents even after completing post-secondary education. There are fewer "empty nests" these days.

There are many reasons for this new trend. What is alarming for divorced parents is that in Ontario you cannot get child support for an adult child living at home unless the child is unable to obtain employment because they are ill or are in school full time. The adult child who is under-employed and is a costly boarder does not warrant child support. So, if your child returns to your home after graduating from university and is only able to get a job at McDonalds, you are stuck paying the bills.

We have several articles dealing with the issues of child support, custody, and the sharing of expenses on our website. But, alas, there is nothing about seeking child support for the under-employed adult child sleeping in your basement. Sorry. There is no relief for you.

Here is an interesting graphic about the impact of adult children living at home. Thanks to www.CollegeAtHome.com for this graphic. It is amazing!

Divorce - What is the First Step?

Brian Galbraith — Fri, 07 Sep 2012 09:59:57 -0500

Separation and Divorce: These are ugly words. They conjure up feelings of pain, disappointment, fear, and uncertainty. What is the first step? How do I get through this?

I remember when I went through my own divorce (yes, divorce lawyers sometimes get divorced too) how stressful it was for me. I feared the impact it would have on my relationship with my children and wasn't sure what the financial outcome would be. I felt embarrassed and could hardly focus on anything. I just wanted to get through it with the least amount of pain as possible.

It does not matter whether you were married or lived common law, the first step is to find a lawyer you feel comfortable with and who is committed to resolving the outstanding issues in a cost-effective and timely manner. Simply put, you need to find a Collaboratively trained lawyer.

Going to Family Court just makes things worse. Collaborative Practice keeps you out of court.

Collaborative Practice is a way to get through your divorce that minimizes the pain, both financially and emotionally. It is a problem solving process. You are given the support you need to make the best decisions for your family.

All of the lawyers at Galbraith Family Law are trained in this process and are committed to helping you get your issues resolved quickly, effectively and with the least amount of pain possible. We give you the information and support you need to find your way to a resolution.

For more information about the process, here is an article about it.

Other Collaboratively trained professionals are profiled at www.DivorceHappens.ca and www.CollaborativePracticeSimcoeCounty.com.

Forensic Accountants: A Lying Spouse's Worst Nightmare

Brian Galbraith — Mon, 13 Aug 2012 05:38:38 -0500

Grant Webb of Bisk Education has many insights into the use of Forensic Accountants in divorce actions. Here is Grant's blog. Thanks Grant.

No one goes into a marriage expecting to end up in divorce, but sadly almost half of all U.S. marriages end that way. Some people are able to end their marriages relatively peacefully, but for others, a collapsing marriage can quickly lead to hostility and anger. Resentments and dissatisfactions that have built up over time may explode into outbursts of temper and fierce arguments. Spouses may engage in deception or even drugs and alcohol as a form of retaliation or in order to escape or relieve the pain of their dissolving relationship, which in turn creates more animosity. In general, the more hard feelings and enmity there are in the relationship prior to the divorce, the more there will be during litigation, especially when there are substantial assets at stake.

In almost every case, at least one spouse knows that divorce is likely and sometimes they will proactively plan for the end of the marriage. For some people, those plans include hiding marital assets in an effort to retain full ownership of those assets after the divorce. Whether driven by greed, reprisal, or both, the bottom line is that spouses who hide assets will go to great lengths to prevent the other spouse from receiving any portion of those assets.

Depending on how long the person has to plan and how sophisticated they are, hidden assets can be difficult to find. Spouses who own a business or are a principal stakeholder in a business often have the easiest time of shielding assets from the court. Putting friends and family on the payroll, reporting large business losses or expenses, and accelerating depreciation schedules are all tricks that opportunistic spouses may use. Spouses in a marriage with a high net worth and complex investment portfolios also have ample opportunities to conceal assets. They can shift funds to overseas accounts or new, unreported personal accounts. They may also create false paper trails of investment losses to hide income, or invest in property or other assets in other states or countries. As concealment techniques get more complex, it becomes much more difficult to locate the hidden assets and to prove that they were generated with marital funds or other assets that should rightfully be included in divorce settlement hearings.

Family law and divorce attorneys are skilled professionals, but they are not trained or licensed to conduct the type of financial investigation that difficult divorce cases require. Although they have the best intentions of helping their clients achieve the most favorable financial end result, their skill set is not equal to or as effective as that of a forensic accountant. Forensic accountants are highly specialized licensed financial and accounting experts who are often able to reconstruct historical financial transactions and analyze bank statements, tax returns, and other documents to arrive at a true picture of a couple’s net worth and total assets. A forensic accountant is extremely adept at ferreting out financial misbehavior and is likely the last person that a deceitful spouse trying to conceal assets would want to deal with.

Attorneys will often examine public documents, tax returns, and bank statements to look for any irregularities. Forensic accountants will examine these same things, but at a much greater level of detail. Forensic accountants function like financial crime scene investigators. Many of them are also CPAs as a result of passing the uniform CPA exam. They gather every piece of evidence available at the smallest level of detail and then painstakingly reconstruct transactions and trace assets to identify anything that was originated using marital assets, and therefore subject to distribution to both spouses.

People are often surprised to find that forensic accountants also examine a spouse’s lifestyle, spending habits, and other personal habits. They may interview known associates, friends, and relatives and even past romantic interests to further their investigation. When it comes to bank and credit card accounts, forensic accountants don’t just look at current or recently closed accounts. They may go back years and examine every account a spouse has ever held, looking for clues that may indicate the spouse has transferred funds or opened new, unreported accounts.

Forensic accountants possess expertise in financial and accounting matters and a dogged determination to thoroughly examine every aspect of a person’s past and current financial and personal life. For this reason, spouses who are trying to hide assets from the eyes of the other spouse and the court system usually find that a forensic accountant is their worst nightmare.

For those that find themselves in situations that require the expertise of forensic accountants or CPAs, it is a best practice to research the qualifications of any given forensic accountant. This also helps in hiring the right CPA as well.

Divorce and Financial Planning

Brian Galbraith — Mon, 16 Jul 2012 18:58:49 -0500

Sandra Ramos is a financial planner who has helped many clients who are going through a divorce make good financial decisions about their future. Sandra graciously agreed to offer a guest blog with her insights. Here it is.

Following any marriage breakdown there is a time of emotional healing, but there is also a need for financial healing. During a marriage we have often comingled our assets, income, goals and dreams. And when divorce occurs, it seemingly all unravels right before our eyes, leaving us feeling unsure about our financial future.

It is easy and somewhat naïve to suggest that all you need is a new Financial Plan. The reality is divorce can result in some significant changes financially and this can lead to a tremendous amount of stress for both parties. In extreme cases some individuals will not be able to meet their current obligations, let alone think about saving for the future.

The first and best financial decision you can make is to commit to the collaborative process during your separation and divorce negotiations. This process is designed to minimize feelings of animosity and therefore promote cooperation, communication and of course collaboration. From a financial point of view, the result is financial savings of potentially thousands of dollars.

The collaborative process is something that I promote in my practice because, I know that it will save my clients money, undue stress and create an environment of cooperation to ensure both parties walk away with what they need to start their new life on their own. This is even more important when there are children involved.

When the collaborative process is over and we have a written and signed a separation agreement and all of the details around finances and children have been agreed to, it is time for the next step. This is where the services of a Professional Financial Advisor are needed.

The first step for my clients is the budget. Most people dislike budgeting and cringe at the word. However, it is the essential first step in moving forward. We must identify with accuracy what are your regular monthly income and your necessary expenses. The difference between these two numbers will be your discretionary income; it is with this income we can re-plan and re-design your financial future.

There are many factors to organize and understand:

Tax Planning – understanding the changes to your Personal Taxes

Retirement Planning - RRSP’S, TFSA’S & Pension Plans

Estate Planning - New Will and Powers of Attorney & Life Insurance

Education Planning - RESP’S

Employer Benefits

I have 20 years of experience in the Financial Planning Industry and I have also experienced Divorce personally. I know how overwhelming this period in your life is; however by re-establishing your goals and taking control of your financial situation you will be on the right path toward financial independence.

If you are interested in learning more about how I can assist you please do not hesitate to view my website www.sandraramos.ca. Or contact me at 1-866-949-1027 x 235.

Sandra Ramos, CFP

Senior Executive Consultant

Investors Group Financial Services Inc.

138 Commerce Park Drive

Barrie, Ontario

L4N 8W8

Costly Kids - Worth Every Dime

LexBlog — Wed, 27 Jun 2012 09:33:24 -0500

Below is a fantastic graphic about the cost of kids. I have four of them and can say, without a doubt they are expensive and worth every dime. They truly enrich my life.

Created by: EarlyChildhoodEducation

Protecting the Children of "Baby Mommas"

Brian Galbraith — Wed, 20 Jun 2012 13:22:05 -0500

Brenda Shapiro, a lawyer in Florida, submitted the following article to me about how in the USA there are provisions for wealthy parents to pay money into trust funds for their child as child support. We don't have such statutory provisions in Ontario, Canada but I really like the idea. In Brenda's example, a young wealthy father, perhaps an elite professional athlete, could be ordered to pay some money into a trust fund for their child so as to provide future security. What a great idea!

Although we don't have legislation that would allow a judge to order this, we certainly could set up a trust fund by agreement.

Thanks Brenda..... Here is Brenda Shapiro's blog entery.

Protect the Children of 'Baby Mommas'

By Brenda Shapiro, Esq.

When a young girlfriend of a professional athlete, musician or other celebrity gives birth, she joins the growing number of “baby mommas” in South Florida and the nation. While these women in their teens or early 20s come from very different social and economic backgrounds, they would all like their children to have a secure financial future.

The fathers have different goals. Even if he has a good relationship with the baby momma and contributes to his child's care. Fathers live in the fast lane focused on career and endorsement contracts. They buy every boy toy imaginable including cars, jewelry, multiple residences, boats, planes, et al. spending their new wealth freely.

For most of these fathers, marriage to the woman who gave birth to their child is unnecessary. They hope to avoid a host of legal and financial complications. And there are other fathers who try to distance themselves from the situation, forcing the baby momma to file a paternity suit to establish her child’s rights.

Today, a professional athlete might have a three-year contract for $5 million, $10 million or more per year. That's a big chunk of change for a young man in his early twenties whose life has suddenly changed. He is in the media spotlight and constantly being told he's a star. He is pursued by money managers, who promise to manage the financial and investment side of his life, who may or may not have his interests at heart.

Few professional athletes think ahead about what will happen to their money after their peak earning years come to an end. Only a handful of pros like Magic Johnson and Shaquille O’Neal or celluloid stars like Brad Pitt have been able to harness their skills and celebrity status to find success in the business world. Yes. Angelina Jolie is a baby momma.

So, what does short-term earning curve mean financially for baby mommas and their children?

First, the new mother is entitled to child support, based on guidelines established by state statute. Those guidelines are designed to meet the immediate needs of the child – not the mother. And unless the child requires special medical or developmental care, the monthly cost of providing food, shelter, clothing and day care is going to be relatively small compared to the father's high income.

Paying child support usually poses no immediate problem for the high-earning father – at least until the contract comes to an end. Then the financial picture will probably change dramatically. There may be no money left for the child, since the flow of funds has been drastically reduced and the many assets are now liabilities without cash flow to pay the debt.

In light of this all-too-familiar situation, statutes should be revised to address "Good Fortune" child support. Good fortune child support recognizes the long accepted principle that children who are dependent on their parents should share in their parents' wealth. It does not require a lifestyle analysis. Instead of little league baseball or soccer, it allows the court to consider the special benefits available to the wealthy; little league baseball and soccer, swimming lessons, horse-back riding, ballet, music lessons, tennis lessons, private schooling, tutoring et al. It would create the opportunity to order irrevocable trust funds established for each child. The trust funds would be funded from the difference between reasonable child support and the statutory guidelines based upon the parents' net monthly income. An athlete earning millions a year will not notice the contributions needed to fund a college education or career training in the future. Placing the fund under the management of a disinterested third party, preferably a bank trust department selected by the parties or appointed by the court, can help assure that those dollars will be available as the child grows into adulthood.

Putting a court-ordered trust fund in place today provides the child of a baby momma with long-term financial security. Long after the father’s income disappears, those funds will be available to give his son or daughter a better opportunity in life. It's the right thing to do – for all parties.

Brenda B. Shapiro, Esq.

Attorney Brenda B. Shapiro provides legal counsel to clients on family law matters, including prenuptial and postnuptial agreements, divorce, child custody, access and time-sharing, post-dissolution, domestic violence, and grandparents’ rights. She established the Law Offices of Brenda B. Shapiro, LLC in 1994, where she is managing partner. She is also a founding director of the Collaborative Family Law Institute. For more information, www.bbshapirolaw.com.

Four Steps to Take with Your Child After Divorce

Brian Galbraith — Thu, 17 May 2012 10:03:52 -0500

Helping your children adjust after your divorce is essential. Heather Smith offers excellent advice on what you should do to help you child after the dust settles.

Here is Heather's blog:

4 Steps to Take with Your Child After Divorce

You have sat your child down and given the dreaded speech that you never thought you would have to make. Mom and Dad are getting a divorce are some of the most difficult words a child will hear from their parents mouth. There are a few things that will help you and your child during this time; here are 4 things to consider doing:

Get them a counselor: Once you have shared the unfortunate news with your child it is important that no matter their age, you get them a counselor to speak with. Weekly sessions are best for them. It gives them one day a week to discuss and work out their thoughts and feelings. Children have a difficulty opening up to parents and need that third party when it comes to dealing with the divorce. It is a life change for them as well and you need to provide them with help.

Keep quiet: No matter what you do, keep your thoughts to yourself. Do not speak negatively about your former spouse in front of the child. Keep your arguments and frustrations away from the child. Do not share details of the divorce. It is so important to keep that out of the child’s life. Children already feel a sense of responsibility of the parents’ divorce and hearing things like this will only push them further into that belief. As hard as it can be to keep your feelings in, just do it.

Remain positive Make the transition easier on them by remaining positive. Most likely parental rights and visit have been established and now come the difficult part for child, spending time in two different homes. When you drop off and pick up, be sure you remain positive. Be interested in their time at the others house and respond with a smile. You want this to be easy and comfortable for the child.

Get them involved and active: If you child isn’t already part of a sports team or involved in a hobby, be sure that you start them in something. There are all sorts of emotions for your child during this time and having a sport or hobby is a great for them to express it without doing harm to themselves or others when they act out. Sports teams are great because they require practices and game days. They are exercising and socializing with peers their age and can act like a child that they are. Hobbies like painting, learning a musical instrument will stimulate the child’s need to share their emotions. Try a few things out and allow your child to make the decision on what makes them the happiest.

Your divorce is what you make it. It may be a difficult and stressful time for you, but remember you aren’t the only one feeling that pain. Remain positive, get your child involved, find them a counselor and always keep your negative thoughts to yourself. Don’t allow your child to feel like it’s their fault, because it is never the child’s fault.

Author Bio

Heather Smith is an ex-nanny. Passionate about thought leadership and writing, Heather regularly contributes to various career, social media, public relations, branding, and parenting blogs/websites. She also provides value to nanny service by giving advice on site design as well as the features and functionality to provide more and more value to nannies and families across the U.S. and Canada. She can be available at H.smith7295 [at] gmail.com.

Forensic Accounting and Divorce

Brian Galbraith — Fri, 11 May 2012 10:11:09 -0500

The role of a Forensic Accountant in a divorce is not well known. Erin Palmer offers great insights into this valuable professional who can help uncover hidden assets or income of a deceptive spouse. Here is Erin's blog:

All’s Fair in Love and War, Except in Divorce – That’s What Forensic Accountants Are For

You aren’t alone. Many couples considering divorce find themselves in a predicament they never expected to be in and begin to look at each other in a new light. Here’s one scenario: One spouse may be shuffling money around and squirreling it away. The other is offered a piteous settlement and is none the wiser, but instinctively feel that the numbers just don’t add up. Here’s a second scenario: One spouse offers the other a blunt settlement with no questions asked, without a way to alter the settlement later on. Both scenarios should be considered cautionary tales. If your intuition is telling you something isn’t adding up, or your divorce lawyer recommends getting a forensic accountant, you should listen. Large corporations aren’t the only ones guilty of moving and hiding assets these days.

Three Things You Should Know About Forensic Accountants

1. Why You Need a Forensic Accountant

It’s such a simple question to ask, “Why?”, but the answers can vary greatly. An article posted, April 30, 2012, on the Wall Street Journal’s website gave staggering data from several studies…

· 31 percent of U.S. adults who join their earnings and savings with their spouse or significant other admitted they have been deceptive about money at times. – National Endowment for Financial Education

· 58 percent from the same study (mentioned above) admitted they hid cash, as well. – National Endowment for Financial Education

The Wall Street Journal article goes on to report something else of significance – technology is playing a larger role in discovering deceptive financial practices between couples.

· During a 2010 survey, members of the American Academy of Matrimonial Lawyers were asked if in the past five years had they had seen an increase of information and evidence used that was gathered from social media/social networking websites (think Facebook, LinkedIn, Twitter). Can you believe that 81 percent of the members said yes?

· Two years later the members were polled again with the same question and the number of lawyers answering yes climbed to 92 percent. That’s an increase of 11 percent in just two years.

2. What Forensic Accountants Look For

Forensic Accountants are highly trained professionals who may also possess a CPA license as a result of passing the Uniform CPA Exam. These financial professionals have received specialized training in locating financial information through research and technology. When a forensic accountant is assisting with a divorce, one of the first things they review are tax returns belonging to both parties. Believe it or not, a forensic accountant can learn a lot from a tax return such as real estate information, investments, partnerships and businesses, trusts and estates, and much more. Once they’ve reviewed this information, the forensic accountant can branch out and continue digging.

Other items forensic accountants look for are things like unreported retirement funds and decreased earnings being reported by the main bread winner. An unreported retirement fund is a deceptive practice. And decreased earnings may not be a red flag to most lay people, but to a trained professional this could lead to much more. They will look to see when the earnings first started to decrease and study as to whether they can put a tangible reason to the decrease or if it looks like money is being funneled in another direction.

Another task a forensic accountant may perform requires the use of specialized computer programs that can sift through all the data that is currently living on a hard drive or had once been there. Yes, even if data has been deleted from a drive, the information remains deep within the heart of the hard drive and these professionals have the ability to try and retrieve it.

The work of a forensic accountant isn’t always structured around finding a deceptive spouse. They also help lawyers create financial statements based upon their review of the couple’s assets. This has proven to be very helpful in creating an accurate financial picture that presiding judges can utilize to make his or her decision on the separation of assets.

3. If You Want It Done Right (Legally), Hire a Professional

When it comes to divorce, emotions can run high. And it’s natural to have your anger and frustration build. However, trying to take matters into your own hands is not advisable. If you have decided to Google or follow your spouse’s trail online and started finding information pertinent to your case, discuss this with your lawyer first.

The Wall Street Journal article “Why Hiding Money From Your Spouse Has Gotten a Lot Harder” mentions the grey area between following your soon-to-be former spouse’s online history versus putting a key logger on their computer. A key logger can be a piece of hardware or software installed on a computer that records the actions of whomever is using it.

If you are considering going rogue and ‘bug’ your spouse’s computer, it is very important that you talk to your lawyer first. More than likely they will advise against it and the information obtained may not be admissible during your legal proceedings. Not to mention, you could end up in legal trouble of your own.

If you are considering divorce and want to allocate your assets properly, or suspect your family’s assets have been mis-handled or-represented by your spouse, a forensic accountant will be your best line of defense next to your attorney. There are various reasons why you would hire this type of legal representation but for those who may not know the benefits to hiring a Forensic accountant or how to hire the right CPA for your situation, it is highly suggested you research or interview multiple professionals in search for the best fit for your situation.

Erin Palmer writes about CPA exam review and CPA continuing professional education for Bisk Education.

Divorce, Matrimonial Home and Mortgages: Sage Advice And Good Options

Brian Galbraith — Fri, 20 Apr 2012 11:35:27 -0500

Darren Robinson is a mortgage broker in Barrie. He helps many clients who are going through a divorce refinance their home and get on their feet. He has some interesting and suprising advice. Darren is with Dominion Lending in Barrie. He wrote the following excellent blog:

How does separation or divorce impact my home & mortgage?

On the unfortunate occasion when a marriage is dissolved, there are a number of financial questions that need to be answered. The most important is what to do with the matrimonial home? The two easy answers are; 1) sell it, divide the equity & move on or 2) one party buys out the other party and stays in the home.

While option one might sound like the simplest option, if the couple have kids it is usually better for them to keep some type of consistency in their lives. Staying in the home will allow them to remain at the same school & keep their neighbourhood friends which can be very comforting. Also, option one might not be financially possible due to mortgage penalties or a weak real estate market.

In order for option two to work the spouse will have to ensure that they will be able to afford to stay in the house on one salary. The current lender will need to re-qualify the applicant on their own before they will allow the ex-spouse to be removed from title and released from the mortgage (it is extremely important that both these steps are taken because it is possible for someone to be removed from title but still remain responsible for the payments if the mortgage is in arrears). This transaction normally doesn’t involve any lender penalties but a real estate lawyer’s service will be needed to transfer the title.

If, as part of the separation agreement, the spouse remaining in the home is required to make a lump-sum payment to the other, they may need to refinance their mortgage to enable equity to be taken out of the property. This may or may not involve lender penalties (check your lender’s policies). In many cases the lender will allow you to leave your current mortgage intact but add refinance funds to the original balance in a transaction called a blend & extend, avoiding any penalties. There are lending rules in place in Canada that will only allow a home owner to refinance their mortgage to 85% of the home’s value. This can be very limiting to couples who have less than 15% equity in their home, so CMHC (Canadian Mortgage & Housing Corporation) will allow, on a case-by-case basis, the transaction to go through as a purchase to 95% of the home’s value. This can then free up most of the capital the couple has accumulated in the house for a more simple division of assets.

If the spouse staying in the house does not qualify for a new mortgage on their own there is the possibility to add a co-signer/co-borrower to the mortgage. This applicant is normally a parent or sibling who has good credit/income and is willing to take over payments on the home if the loan goes into default. An alternative option is to leave the ex-spouse on title but I highly recommend against this because no matter how amicable your relationship is now you never know how your relationship will evolve in the future.

Keep in mind that most lenders require a finalized separation agreement be in place before they will consider a new approval. They will need complete visibility/disclosure of any alimony or child support payments, as they will need to be calculated when qualifying the client for a new mortgage.

When facing separation or divorce it is always best to sit down with a mortgage broker for a free consultation. They will be able to outline viable options and work through different scenarios throughout the separation process to ensure you’re making the best financial decision available to you.

If you live in the Barrie, Ontario area I’d be happy to set an appointment at my office (62 Commerce Park Drive, Unit N) to discuss your options and detail a plan to move forward. You can call me at (705) 737-6161, (888) 737-6162 or by email drobinson@domininionlending.ca. Alternatively you can find more information about mortgage financing at www.darrenrobinson.ca.

Divorce and Debt: Tips to Get Out of Debt

Brian Galbraith — Tue, 10 Apr 2012 11:17:49 -0500

Sophie Kinsella of the Oak View Law Group wrote an interesting blog about dealing with debt after divorce. Although the Oak View Law Group is not Canadian,it is found in many of the states of the US, her comments ring true in Ontario too. It just makes good sense. Thanks Sophie.

Here’s is her blog…

Tips to follow in order to come out of your divorce debt

Many people believe that divorce is the beginning of a fresh new chapter in life, but that’s far from being true. Years of marriage often lead to years of accumulated debt, especially on the recent economic surface. Almost more than 50 percent of the divorce couples are under knee-deep debt and looking for a solution to come out of it. In this situation, it is generally not recommended to enroll on a debt settlement program as it sometimes becomes an intimidating task and hurts credit score. Instead, it is usually suggested to follow a few simple tips that will help you dig out of your divorce debt soon.

1. Budgeting:

One of the most important tips to come out of your divorce debt is to make a budget plan. Make a list of all the sources of your income and expenditures, and determine where your money goes out. You may do it on a paper or in a spreadsheet. Either way is good, but you have to see which one is more convenient for you.

2. Modify your spending habit:

Being a girl, you might have a few bad habits when it comes to shopping. You might often end up buying unnecessary goods and doing impulsive shopping. But now when it is crucial for you to come out of the debt, you must have a control over your spending habit. Always carry your budget along and abide by it. Every time you go for shopping, list down the items that you need to buy and are of utmost important. Make sure, an item which is not there in the list, should not be there in the cart.

3. Prioritize your expenditures:

When you are by yourself, you might wish to text your friend or log in to Facebook. But now it’s time to prioritize your expenditures. You must understand that now it’s time to focus on debt repayment rather than paying the bills.

4. Make some wise decision:

When you have come half the way of budgeting, make some wise financial decision. Think twice if you can do without the basic voice service on your cell phone in order to save $40 per month. Also think if you can bathe your dog by yourself instead of keeping a groomer. These are a few important questions that you need to ask yourself in order to determine how to reduce monthly expenses.

Also take a decision in regard to a debt payment plan. Determine how you are going to pay your bills. You may either pay the bills on a monthly budget cycle or may pay on a bi-weekly cycle, depending on your unique financial situation.

5. Snowball:

Consider repaying your debt in a snowball method. Aim at paying off your lowest balance first while making small amounts to the highest balance. This will help you pay off your debt and will boost your moral support.

In conclusion, afore mentioned are some effective tips to follow in order to get rid of your divorce debt.