High-asset divorce need not cause financial ruin
One of the primary concerns of people in British Columbia who are considering divorce may be the cost. Contested divorces — especially a high-asset divorce — can cost tens of thousands of dollars and in some cases even hundreds of thousands. However, some steps can be taken to limit the costs — before, during and after the filing.
Before filing for a divorce, each spouse may want to prepare him or herself financially by educating themselves about all their debts and assets. Then, they should draft a budget based on the money currently spent on all expenses, followed by a post-divorce budget. This must include rent, vehicle costs, living expenses, child-care charges and — where applicable — spousal and child support. Not only assets are split in the property division process, but also debts, so attention should be paid as to how that will be divided. Discussing the divorce options with an experienced divorce lawyer can further help to identify ways to save time and money.
It may be best to try to check emotions during this time and avoid any actions that involve revenge, payback or settling of scores. Couples who can communicate and compromise to reach mutual agreements can bring about significant savings. During negotiations, it is important to understand how the court will determine child support and an estimate of the amount the court will order. Also, remember that spousal support is not guaranteed and settling that in negotiations may be wise. Each party may benefit from adding professionals, such as tax and property advisors, to their respective support teams to provide advice on tax implications and more.
During all the preparation and negotiation proceedings, each spouse’s legal counsel can provide valuable support. The time and money involved in a high-asset divorce depend largely on the ability of the parties to resolve contentious issues. However, with the professional guidance of a seasoned British Columbia divorce lawyer, a divorce that fits the family dynamics while being financially fair at the same time can prevent either party from going broke in divorce.
Source: business.financialpost.com, “Divorce is never easy and your heart may be broken, but that doesn’t mean your wallet needs to be too“, Melissa Leong, Accessed on Dec. 24, 2016
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