We've all heard the statistics for divorce. Whether it is one in two or one in three, what we do know for certain is that it is a life-changing situation and the decisions we make in the process can be for "better or worse." When you are considering divorce or going through the process, the following areas should be looked into.

Gather information

Start the process by gathering all the financial records that you can get hold off. You will need to make photocopies of all the documents for your lawyer and financial divorce specialist. Make a list of all the documents you require and work your way through them. You will need to make copies of tax returns for both spouses (preferably for the last three years), RRSP statements, non-registered holdings, bank accounts, bond holdings, life insurance policies, mortgage statements, property deeds, credit card statements, loan statements, financial statements for businesses, to name a few. If you have any prenuptial or cohabitation agreements, you will need copies of these as well. If you had any property, investments, loans etc. when you got married, you would want details or statements for these items as well, so that these items can be excluded from the calculation of net family property for division.

Build your team

Divorce is an emotionally charged experience and when you are faced with financial aspects that are confusing, the whole process becomes terrifying. Make sure that you surround yourself with a professional team and make use of their advice and experience. Your friends and family are there to support you but don't make your decisions based on what they tell you. Seek the advice of professionals and then make a decision that feels right for you. When you are looking to hire a lawyer, make sure you find a lawyer who is specialized in the area of family law. Both spouses need to consult with different lawyers as one lawyer cannot ethically represent both of you. Hire a financial divorce specialist who is a financial professional that is trained in the financial and tax issues of divorce, and who can be an invaluable asset to you in the days following divorce as well. The financial divorce specialist will be able to project your settlement options out into the future, 20 to 25 years ahead, and help you to see your financial future and make an informed choice.

Understand your choices

Make sure that you understand the various assets that you and your spouse own and how they will work for you. Some assets are more liquid than others, some have tax consequences and may trigger a capital gain or loss on sale or transfer. You would need to speak to your financial professional to determine the financial consequence of each option and transaction. If either of you (or both) have a pension, do get it appraised by a pension valuator because these plans can be worth a significant amount of money. You may be living in your dream home but keeping the house may not always be the best option for you. With your new level of income, you may not be able to afford the mortgage, property taxes, home maintenance and upkeep. To survive your divorce, you need a place to live in, some liquid assets and ideally little or no debt!

Live again

You've made it through the challenge. Now you have to ensure that you take care of yourself and your children if you have any. See a lawyer to draw up a new will and powers of attorney for health and property. Remember to change beneficiary designations on RRSPs, life policies and group plans. Look ahead and dream. Set some financial goals for yourself and work with your financial professional to ensure that you are taking steps to achieve the security you require for the future.

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 article are those of the author alone, and they have not been approved by, and are not necessarily those of Dundee Private Investors. Dundee Wealth Management is a DundeeWealth Inc. Company.