Staving Off Financial Trouble through Collaborative Law
It is no secret that life after divorce is entirely different than it was before. Many people are not fully prepared for the challenges their new lives will bring, however. A recent study shows divorce can strain finances to the breaking point. For some men and women in British Columbia, collaborative law may hold some of the keys to a solution.
A survey conducted in Ontario asked insolvent men and women to name the major contributing factors to their financial troubles. One of the main causes cited was divorce. It was most prevalent among those aged 40 to 49; 20 percent of people in this age bracket called it a major contributor to their insolvency. Divorce is not typically the sole cause of a financial collapse, but it can bring down an already rickety fiscal structure.
In many marriages, both spouses contribute to the household income, but there’s only one set of bills to pay. After a divorce, each person has to pay his or her own bills on a single income. This can be a shocking reality for many. Exacerbating the situation may be the obligation to pay support, the additional burden of having custody of the children on a lower income and legal fees.
There may be ways for a divorcing couple to ease into single life on sound financial footing. Choosing a collaborative law divorce over going to court can greatly reduce legal fees. The former couple can also work together with their representatives to arrive at mutually agreeable numbers to include in the settlement. A skilled British Columbia lawyer may be able to help an individual take some of the financial sting out of divorce.
Source: globalnews.ca, “Heartbroken and bankrupt: Why divorce can destroy your finances“, Erica Alini National, April 17, 2017