Maybe you have been thinking about it for some time. Maybe it is a sudden revelation. Perhaps your spouse has made the decision for you. Whatever the situation, it sends a shudder up and down your spine! Divorce is one of life's most upsetting events. Those who leave have different emotions from those who get left, but the degree of turmoil is about the same. It is easy to get overwhelmed, but working through an action plan and taking it step by step will help you get through this painful time.

Firstly, create a cash plan for the separation period. A divorce typically costs more and takes longer than you expect. Money that previously used to support one household must now be stretched to support two! On top of regular transportation, food and accommodation costs, you now have an additional drain on your financial resources in the form of court fees and legal fees. It is therefore important to accumulate some cash reserves during this period. If possible, put some money aside from your regular paycheque, into a bank account or money market account in your own name. Do remember to reveal all your assets, including your cash reserves, when you divide the assets, to make sure your divorce agreement is valid.

Gather financial records e.g. tax returns, statements for all assets and debts, land deeds, marriage certificates, pension statements to name a few. Take an inventory of your safe deposit box. Call a realtor for an estimate of worth on your home, cottage or rental. For exact values call an appraiser. If you have a lot of antiques, use an antiques or second-hand dealer to value your antiques / furnishings. Use the "Lemon" aid book or call your general insurance broker to get an estimate of vehicle values. Remember to get your pension valued by a professional pension valuator. Keep track of any inheritances you may have received and keep it separate from family assets. Make out a net worth statement for yourself and your spouse. List all your assets firstly and then subtract all that you owe, to calculate your net worth on the date of separation. This information will be required by your lawyer and financial divorce specialist to help along in this process.

Put together a team of specialists to help you. Your divorce requires competent professional assistance and emotional support. Money can be the most contentious issue in any separation or divorce. It is vitally important for your future well being that the financial settlement be as satisfactory as possible for all concerned, both in the short and long run. A competent financial expert is invaluable in this process. Financial professionals who have taken advanced training in the area of divorce settlements are recognized as Financial Divorce Specialists and use the designation FDS. The Financial Divorce Specialist does not provide legal advice but can evaluate and offer suggestions based on proposed financial settlements. A divorce or family law lawyer will be able to provide you with the legal expertise required. A mental health professional may be required to provide you with a safe emotional outlet and expert guidance on managing stress and parenting issues. Look at other options to resolve your differences e.g. collaborative divorce, or mediation. Remember to stay focused on the major issues and be prepared to give way on minor items.

Get a copy of your credit report from the credit bureau. Do not forget to inform creditors in writing that you are no longer responsible for a debt (and include your separation or divorce decree if you have it). Establish your own line of credit and get a credit card in your name preferably when you are still together, so that you don't get turned down when you are on your own.

Do make sure that you protect your support payments by making ensuring you have insurance (life, disability, critical illness) in place and that you are the registered owner of the policy.

Get a new will made and if you are considering a new relationship do get a Pre-nuptial agreement signed. Use the expertise of your financial divorce specialist to ensure that your financial plans for the future are in your best interest.

Joyce Owen is a certified financial planner and financial divorce specialist with Brophy Financial Planning and Insurance Agency and is registered with Dundee Private Investors Inc. (DPII) in Ottawa. Insurance products are provided through Dundee Insurance Agency Ltd. (DIAL). Please call 613-728-9573 for a free consultation or if you have questions. The statements and statistics contained herein are based on material believed to be reliable but we cannot guarantee they are accurate or complete. This newsletter is solely the work of Joyce Owen, for the private information of her clients. Although Joyce is a registered Mutual Fund representative with Dundee Private Investors Inc. ("Dundee Private Investors"), this is not an official publication of Dundee Private Investors. The views (including any recommendations) expressed in this newsletter are those of the author alone, and they have not been approved by, and are not necessarily those of Dundee Private Investors.