The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
A new poll of divorced Canadians shows that a majority believe divorce is the most financially expensive event that can happen in a person's life and yet many of the poll respondents were ill-prepared to handle this aspect of the break-up. An Investors Group poll of 160 divorced Canadian adults conducted by Decima Research shows that from the outset of the divorce process, Canadians are divided on financial issues. Starting with the most fundamental question ? how should the money be divided ? there is disagreement: Only the slimmest of majorities, 51 per cent, believe it is fair that all the assets of a marriage be split equally, regardless of how much each spouse has contributed in income. Another 29 per cent disagree, while 15 per cent are undecided. Interestingly, 61 per cent of women agreed it was fair that assets should be split equally compared to 41 per cent of men. "Divorce is a painful process and the financial costs ? on top of the emotional ones ? can really add up," says Debbie Ammeter, Vice President of Advanced Financial Planning at Investors Group. "While during the divorce process isn't always a comfortable time to deal with finances, it may be one of the most critical points in one's life to seek professional advice. A proper financial strategy can help ensure the monetary toll doesn't climb out of hand." See 'Often' P.# Con't from P.# While the annual divorce rate in the country has stabilized, according to Statistics Canada the number of people touched by divorce is still significant. According to the agency, over the five years between 1998 and 2002, there were 352,407 divorces. Money isn't just a problem during the divorce process, it is often one of the root causes of the break-up. The poll showed 22 per cent say that issues with respect to money contributed "a great deal" or "almost completely" to their divorce. Another 24 per cent said it was "somewhat" a contributing factor. It is clear that divorce often comes with a financial penalty: 47 per cent of respondents say divorce made their financial situation worse. In fact, respondents also reported that because of their divorce: 35 per cent had to go into debt; 22 per cent had to seek financial support from friends and family; 28 per cent had to sell household items or personal assets; and, 27 per cent had to sell or redeem financial investments. Children are affected financially as well. The poll found that 44 per cent of people said it was extremely difficult to save for post-secondary education after divorce. Many divorced Canadians feel they didn't adequately manage their finances during their divorce proceedings. According to the poll, 74 per cent of respondents did not receive financial advice during their divorce proceedings; yet, 61 per cent agree that divorce is the most financially expensive event that can happen in a person's life. Underscoring how difficult the financial pain can be, 16 per cent of divorced Canadians said the financial impact of their divorce was actually more difficult than the emotional one. Perhaps considering themselves wiser for the experience, 57 per cent of divorced Canadians in the poll said that newlyweds should have a pre-nuptial agreement before getting married. A financial strategy to deal with divorce is important. Below are five tips for divorce planning: 1. Get legal advice as early as possible. See a lawyer about having a separation agreement prepared. 2. Understand your legal rights as to division of property and custody of children. 3. Ask your lawyer about the different options within the divorce process regarding their costs, advantages and disadvantages ?divorces are not always adversarial. 4. Get professional financial planning advice on the long-term implications of the financial decisions you are being asked to make under the proposed divorce settlement. 5. Divorce and relationship issues are emotional. Don't let your emotions overrule sound judgment when making decisions. If there is a silver lining for the romantic in the poll's findings, it is surely this: 79 per cent of divorcees agree that it is better to have "loved and lost" than "never to have loved at all".
