| Document | Why You Need It |
|---|
| Bank statements (all accounts) | Prove balance at separation date |
| Investment statements | RRSP, TFSA, non-registered |
| Mortgage documents | Outstanding balance, terms |
| Credit card statements | Joint and individual debts |
| Tax returns (3+ years) | Income determination for support |
| Pay stubs | Current income verification |
| Pension statements | Value for property division |
| Property tax bills | Real estate valuation |
| Vehicle ownership | Titles, loans |
| Life insurance policies | Beneficiary changes |
Tip: Make copies before separation if possible. Take photos of documents.
Protect Yourself Financially
| Action | Details |
|---|
| Open individual bank account | For salary deposits |
| Monitor joint accounts | Watch for large withdrawals |
| Know all account balances | Document everything |
| Understand monthly expenses | Create budget baseline |
| Don’t hide assets | Illegal and can backfire |
| Don’t dissipate assets | Spending sprees hurt your case |
Financial Organization Checklist
Assets to Inventory
| Asset Type | Information Needed |
|---|
| Bank accounts | Account numbers, balances, statements |
| Investments | RRSP, TFSA, non-registered, RESP |
| Real estate | Properties, values, mortgages |
| Vehicles | Make, model, year, value, loans |
| Pensions | DB/DC pension, statements |
| Business interests | Ownership, valuation |
| Valuable property | Art, jewelry, collectibles |
| Cryptocurrency | Wallets, balances |
| Stock options | Vested and unvested |
Debts to Inventory
| Debt Type | Information Needed |
|---|
| Mortgage | Balance, payment, terms |
| Home equity line | Balance, limit |
| Car loans | Balance, payment |
| Credit cards | Balances (joint and individual) |
| Personal loans | Amounts, terms |
| Student loans | Balances |
| CRA debt | Outstanding taxes owed |
| Business debt | Personal guarantees |
Property Division by Province
Equalization (Ontario and Most Provinces)
| Principle | Application |
|---|
| Calculate net family property | Assets minus debts at separation |
| Compare to NFP at marriage | Growth during marriage |
| Equalization payment | Higher NFP spouse pays half of difference |
Example:
- Spouse A: $500,000 NFP at separation, $50,000 at marriage = $450,000 growth
- Spouse B: $200,000 NFP at separation, $25,000 at marriage = $175,000 growth
- Difference: $275,000
- Equalization: Spouse A pays Spouse B $137,500
Matrimonial Home
| Rule | Details |
|---|
| Special treatment | Value split 50/50 regardless of ownership |
| Pre-marriage equity | Often shared (unlike other assets) |
| Excluded from exclusions | Can’t exclude inherited home if it’s matrimonial home |
BC uses “family property” rules that are similar but have some differences in how certain assets are treated.
Specific Asset Division
RRSP/RRIF Division
| Step | Details |
|---|
| Calculate total value | At separation date |
| Include in equalization | Growth during marriage |
| Transfer tax-free | Using T2220 form after divorce |
| Transfer to spouse’s RRSP | No tax triggered |
Important: The receiving spouse will pay tax on eventual withdrawal.
TFSA Division
| Consideration | Details |
|---|
| Part of NFP | Growth during marriage included |
| Transfer options | Cannot transfer directly to spouse |
| Contribution room | Need to withdraw, spouse contributes to their own |
| No tax impact | TFSAs are tax-free |
Pensions
| Pension Type | Division Method |
|---|
| Defined Benefit | Present value calculation, division order |
| Defined Contribution | Account balance at separation |
| CPP | CPP credit splitting (automatic on request) |
CPP Credit Splitting: Years of marriage = years of CPP credits that can be split. Apply to Service Canada.
Business Interests
| Consideration | Details |
|---|
| Valuation needed | Often requires business valuator |
| Goodwill | May or may not be included |
| Closely-held companies | Complex valuation issues |
| Future earnings | Generally not included |
Stock Options
| Type | Treatment |
|---|
| Vested at separation | Part of NFP |
| Unvested | May be divided proportionally |
| Exercised during marriage | Included in NFP |
Spousal Support Considerations
Factors Affecting Support
| Factor | Impact |
|---|
| Income difference | Larger gap = more support |
| Length of marriage | Longer = more support |
| Role during marriage | Stay-home parent = compensatory support |
| Self-sufficiency | Can recipient become self-supporting? |
| Age and health | Affects ability to work |
Support Advisory Guidelines
| Marriage Length | Amount Range | Duration Range |
|---|
| 5 years | 2.5-5% of income diff × years | 2.5-5 years |
| 10 years | 5-10% of income diff × years | 5-10 years |
| 20+ years | May approach 50% of difference | Indefinite possible |
Child Support
| Component | Details |
|---|
| Table amount | Based on payor income, number of children |
| Section 7 expenses | Childcare, medical, activities (shared) |
| Custody arrangement | Affects calculation |
RESP Division
| Option | Mechanics |
|---|
| Keep with one parent | Transfer subscriber role |
| Split between parents | Divide account |
| Continue jointly | Both remain subscribers |
| Withdraw | Grants returned to government |
Child Tax Benefits
| Consideration | Details |
|---|
| CCB goes to primary caregiver | Or split if shared custody |
| Update CRA | Report separation |
| Retroactive adjustments | Possible |
Tax Implications
Year of Separation
| Item | Treatment |
|---|
| Filing status | Can file as separated if apart Dec 31 |
| Spousal amount | Prorated for year |
| CCB | Recalculated based on individual income |
Ongoing Tax Issues
| Item | Details |
|---|
| Spousal support | Taxable to recipient, deductible to payor |
| Child support | No tax impact for either party |
| Property transfers | Can be tax-deferred between spouses |
| Principal residence | May need to designate for each property |
Legal Process & Costs
Types of Divorce
| Type | Cost | Timeline |
|---|
| Uncontested/Joint | $2,000-5,000 | 3-6 months |
| Mediated | $3,000-8,000 | 3-9 months |
| Collaborative | $10,000-30,000 | 6-12 months |
| Litigated | $20,000-100,000+ | 1-3+ years |
What You Need for Divorce
| Requirement | Details |
|---|
| Separation for 1 year | Or adultery/cruelty |
| Marriage certificate | Original or certified copy |
| Parenting plan | If children involved |
| Financial disclosure | Both spouses |
Budgeting for Life After Divorce
New Budget Considerations
| Expense | Single-Income Reality |
|---|
| Housing | May need smaller place |
| Utilities | Now 100% your responsibility |
| Insurance | Auto, home, life updates |
| Child expenses | Ongoing responsibility |
| Support payments | Paying or receiving |
Post-Divorce Financial Tasks
| Task | Timeline |
|---|
| Update beneficiaries | Immediately |
| Change will | Immediately |
| Update insurance | Within 30 days |
| Refinance mortgage | As agreed |
| Remove from joint accounts | As agreed |
| Update CRA | Online or by phone |
| Update bank accounts | Add/remove names |
Protecting Your Credit
During Divorce
| Action | Why |
|---|
| Monitor credit report | Watch for unauthorized activity |
| Freeze joint credit | Prevent new charges |
| Document joint debt | For division purposes |
| Pay minimum on everything | Protect credit score |
After Divorce
| Action | Details |
|---|
| Remove ex from joint accounts | Requires their agreement |
| Refinance to remove name | From mortgages, loans |
| Get own credit cards | Build individual credit |
| Monitor for years | Ex’s debt may affect you |
Working with Professionals
Who You May Need
| Professional | When |
|---|
| Family lawyer | Complex assets, disputes |
| Mediator | Amicable split, cost savings |
| Accountant | Tax planning, business valuation |
| Business valuator | If business involved |
| Actuary | Pension valuation |
| Financial planner | Post-divorce planning |
| Therapist | Emotional support |
Red Flags with Spouse
| Warning Sign | Action |
|---|
| Hiding assets | Forensic accountant may be needed |
| Draining accounts | Seek court order immediately |
| Running up debt | Document everything |
| Transferring property | May be set aside by court |
| Quitting job | Court can impute income |
Timeline Summary
| Phase | Key Actions |
|---|
| Week 1 | Secure documents, open own account |
| Month 1 | Lawyer consult, full financial inventory |
| Months 1-3 | Financial disclosure, separation agreement |
| Month 4 | Property division, support agreement |
| Month 6 | File for divorce (1 year from separation) |
| Month 9-12 | Divorce finalized |
| Ongoing | Review agreement annually |