Financial Consumer Agency of Canada

Financial Consumer Agency of Canada

November 06, 2013 09:00 ET

Tips for Managing Your Finances After Separation or Divorce

OTTAWA, ONTARIO--(Marketwired - Nov. 6, 2013) - Working out what to do when a relationship ends can be hard, but the change in your financial situation can pose even tougher challenges. The Financial Consumer Agency of Canada (FCAC) has produced a new life event, a helpful free guide, that forms part of FCAC's complement of life event-based financial literacy resources. Getting Separated or Divorced outlines the financial decisions that need to be made, steps to take and things you should know about dividing property and debts; it also lists some of the professionals, like lawyers and financial advisors, who may be able to help.

"The new reality of less money, changes in your living arrangements and needing to take time to consult with lawyers, support services and financial institutions can be very stressful, financially and emotionally," says Lucie Tedesco, FCAC Commissioner. "A guide like this makes it easier to plan the next steps."

The guide covers some of the financial considerations related to separation and divorce, including some key points:

- the difference between separation and divorce

- how to separate your finances and the effect on your credit report

- your options when making changes to your living arrangements, such as selling or keeping your home, the costs involved and qualifying for a mortgage on your own

- ways to share your property and debts

- the different impacts that having been married or in a common-law relationship have on dividing property and splitting pension plans when the relationship ends

- how child support is calculated, and what to do if income changes or if one parent doesn't pay

- spousal support-what it is, and how it is determined and taxed

- steps to take after you separate or get divorced, such as updating information related to benefits, beneficiaries, insurance, wills, powers of attorney and financial plans.

Getting Separated or Divorced is one of a series of life events available on FCAC's website, itpaystoknow.gc.ca. Others include Moving Out on Your Own, Dealing with Debt and Owning a Home.

About FCAC

With educational materials and interactive tools, the Financial Consumer Agency of Canada (FCAC) provides objective information about financial products and services to help Canadians increase their financial knowledge and confidence in managing their personal finances. FCAC informs consumers about their rights and responsibilities when dealing with banks and federally regulated trust, loan and insurance companies. FCAC also makes sure that federally regulated financial institutions, payment card network operators and external complaints bodies comply with legislation and industry commitments intended to protect consumers.

You can reach us through FCAC's Consumer Services Centre by calling toll-free 1-866-461-3222 (TTY: 613-947-7771 or 1-866-914-6097) or by visiting our website: itpaystoknow.gc.ca.

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