Or entering into a cohabitation relationship or marriage? Here are some tips and things to be aware of:
- Ensure you establish credit in your own name; Keep a credit card and bank account in your name
- Keep inheritances separate and apart in an account in your own name – if you separate, you will share in the growth, but not the initial principal. If funds put into the matrimonial home you will lose the exclusion of the inheritance unless addressed by a marriage contract
- Have a co-habitation/marriage contract, particularly if you own a house when you get married. Once your partner moves in it becomes a matrimonial home, and if the same home is owned at separation, then your partner shares in the value unless excluded by a contract
- Update wills and beneficiaries only when the Separation Agreement is finalized
- Keep all your financial statements from the Date of Marriage. Financial institutions only keep statements for 7 years, and what you bring into the marriage can be deducted from your net family property at separation, but you need to prove the numbers
- If you separate, come to an agreement on the date of separation and start collecting account statements for that date. You will be ready to proceed when the time is right
- Be familiar and involved with your family’s finances and attend annual reviews
- Hire a settlement focused lawyer vs. a litigator (you will be beholden to their process)
- Familiarize yourself with the different processes available (Mediation, Collaborative, kitchen table etc.)
- Don’t make any decisions or agreements until you have full financial disclosure. Don’t trust your soon to be ex-spouse who says “trust me”!
- Ensure you have a separation agreement that stands the test of time and allows for flexibility
- Seek independent legal advice from a qualified family lawyer rather than a friend or relative who is a lawyer practicing in another area
If you, a friend or relative is contemplating divorce, I offer a complimentary 30-minute consultation. Please reach out to me at (416)799-7861 or [email protected].