April Dorey, Investment Advisor April 2010
Current Article ∙ Archive ∙ Back to Island Voices
Divorce Decisions
Divorce can be emotionally devastating, and it may not be easy to concentrate on financial matters during this time, but those who don’t may wish they had once the proceedings are final. Getting good financial advice is critical before, during and after a divorce. There are an abundance of stories of spouses acting hastily or making poor financial decisions based on heated emotion and living to regret it afterward.
The family home is often the most hotly debated asset. Family businesses can also be extremely touchy. Giving up financial security in exchange for a house or other illiquid asset is a mistake that is far too common. There are many things to think about before deciding how your assets should be split and a qualified financial advisor can be helpful as you work through this process.
Avoid Complications
Early on, no matter how amicably the process seems to be proceeding, take steps to protect your credit. Close joint accounts without a balance; freeze those that are active. Keep a record of your calls to credit card companies, and make it clear that you will no longer be responsible for additional charges after the date of your call. Ask the companies to inform credit rating agencies of the new status of your credit card accounts.
Separate Advisors
It’s common for couples to have received advice from the same financial advisor over the years. However, once the marriage is irreparably broken, it is vital that you secure your own advisor. He or she can help you make critical decisions that are entirely in your interest while guiding you toward a successful financial future.
Separating your finances from all the other issues you’re likely to confront during the divorce proceedings may help you maintain focus. You might want to assess how much you will need to live comfortably after the divorce, too. If you do, you’re likely to better be able to evaluate a potential settlement agreement. Your new financial advisor can provide budget worksheets or other useful financial tips to help you through the process.
Take a Deep Breath
No red Ferrari, no vacation cottage in the mountains, no massive bequests to your favorite charity: If you’re the recipient of a substantial settlement, you first might consider doing as many experienced financial planners suggest–almost nothing. Healing takes time and before you make expensive or irreversible decisions take a breath and contemplate your future.
Divorce brings sudden freedom that is an opportunity to consider the meaning of your life, what you would like to accomplish and how you might satisfy those desires. Your goals may suddenly be quite different from simply allowing the days to tick by in rush to put dinner on the table, pay the bills and take the children to soccer practice.
Divorce can be distressing but it is important to take measured steps to protect your financial well-being now and in the future.
Please contact me for further information.
April M. Dorey, B.Comm, FMA, FCSI
T: 250.405.2429 or 1.877.405.2400
april.dorey@raymondjames.ca
www.aprildorey.com
*Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person’s situation. You should discuss any tax or legal matters with the appropriate professional. Written by April Dorey and expresses the opinions of the author and not necessarily those of Raymond James Ltd. Statistics and factual data and other information in this newsletter are from sources RJL believes to be reliable but their accuracy cannot be guaranteed. Securities-related products and services are offered through Raymond James Ltd., member CIPF. Financial planning and insurance products and services are offered through Raymond James Financial Planning Ltd., which is not a member CIPF.
© April Dorey. Articles, statistics and other data referred to or cited are intended to provide readers with potentially useful information for their own personal use. *Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person’s situation. You should discuss any tax or legal matters with the appropriate professional. Reproduction without permission is permitted with due acknowledgement. The views expressed are those of the author, April M. Dorey, and not necessarily those of Raymond James Ltd. It is provided as a general source of information only and should not be considered to be personal investment advice or a solicitation to buy or sell securities. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision. The information contained in this article was obtained from sources believed to be reliable, however, we cannot represent that it is accurate or complete. Raymond James Ltd. is a member of the Canadian Investor Protection Fund.
For more information please contact:
April Dorey, B.Comm, FMA, FCSI
Financial Advisor
Raymond James
10th Floor, 1175 Douglas Street
Victoria, BC.
Tel. 250-405-2429
www.aprildorey.com