Nobody plans to divorce. There is no such thing as a savings plan for divorce. Financial advisors rarely recommend strategies to prepare their clients for divorce. For almost everybody, divorce is an unanticipated major life changing event for which there was no financial plan.
Moreover, divorcing spouses, by definition, are in an emotional state. They are upset, scared, angry and sometimes even vengeful. When you combine the lack of financial planning for divorce with the emotional state of the divorcing spouse, this can often lead to making very poor financial decisions. Some spouses will spend all of their money, and then borrow more, in order to fund expensive divorce litigation against their ex.
Scores of spouses needlessly spend their life savings to wage a high conflict divorce war against their former spouse in the name of principle or revenge.
That is why it is absolutely critical that the divorcing spouse align him or herself with the right professional advisors so that they make intelligent, unemotional and rational choices about how to get through their divorce. Divorce lawyers, mediators, valuators and counsellors are very expensive. These people have spent many years acquiring the higher education, specialized training and expertise to be able to assist divorcing families. They have honed their skills in order to help families reduce conflict, focus on the children and reach long lasting and fair divorce settlements. However, some clients are so driven by anger that they lose sight of their financial reality. When such people end up in the hands of professionals who are more interested in their billing than in the welfare of their clients, the combination is tragic.
It is possible, even likely, to get through divorce with integrity, pride and financial health. The selection of the right advisor is key to that outcome. Choose wisely.
Editorial Note: Originally published in 2019, this article offers timeless advice on navigating divorce without financial fallout. Its focus on smart decision-making and professional guidance remains as relevant today as ever.
Steve Benmor, B.Sc., LL.B., LL.M. (Family Law), C.S., Cert.F.Med., C.Arb., FDRP PC, is the founder and principal lawyer of Benmor Family Law Group, a boutique matrimonial law firm in downtown Toronto. He is a Certified Specialist in Family Law, a Certified Specialist in Parenting Coordination and was admitted as a Fellow to the prestigious International Academy of Family Lawyers. Steve is regularly retained as a Divorce Mediator/Arbitrator and Parenting Coordinator. Steve uses his 30 years of in-depth knowledge of family law, court-room experience and expert problem-solving skills in Divorce Mediation/Arbitration to help spouses reach fair, fast and cooperative divorce settlements without the financial losses, emotional costs and lengthy delays from divorce court.
Share this article on: