Now that you know your expenses and your financial budgets, you are ready to negotiate the financial aspects of your agreement. This can be challenging and even scary.
If you have children, your situation is even more complicated. Parents have a moral, if not legal responsibility, to support their children until they complete their first post-secondary school degree or diploma, or until they have a full-time job and they’re self-sufficient.
Financial Agreement, as part of separation, is impacted by your financial responsibilities, personal values, your ability to communicate with your ex-spouse or partner over spending on children, the amount of your assets, liabilities and possible interest payments, and your desired financial wants and needs. Every person’s situation is different. How money is spent will contribute considerably to your personal security.
The financial issues to be considered are:
- Child Support and Children’s Special Expenses (if there are children who are being supported).
- Spousal Support / Alimony.
- Life Insurance that secures your support payments.
- Medical Coverage if there is currently an extended healthcare plan.
- Division of Personal / Family Assets: including appropriate valuations, decisions regarding keeping or selling the Matrimonial Home (if owned) and Equalizing your Net Family Assets, etc., and
- Your Liabilities and a repayment plan.
Note: Financial separation can be very confusing, complicated and can bring out your worst fears and anxiety. You have a certain lifestyle, but financially your lifestyle is about to change. It’s important to speak with a qualified Family Lawyer / Attorney, Financial Mediator, Life Insurance Advisor or Financial Advisor before reaching a financial agreement with your ex-partner. Many families have complicated financial situations and typically one party knows more about their financial assets than the other. Remember to get good advice.
When Parents Do Well, Children Do Well