divorce statistics Archives - Ira SmithTrustee & Receiver Inc.

Prepare yourself for divorce financially: Introduction

There is nothing good about divorce yet Canadians continue to engage in the practice in record numbers. The divorce statistics are staggering. According to Statistics Canada:

In Canada, 48% of marriages end in divorce (Ontario’s rate of divorce is 42.1%)
The average length of a marriage nationally is 14 years

According to the Vanier Institute of the Family, the divorce rate for second marriages is even higher at over 50%.

Prepare yourself for divorce financially: Not just emotionally

We all know how emotionally gut-wrenching divorce can be on couples and their children. But, how many couples are financially ready for divorce? Unless you’re like Gwyneth Paltrow and Chris Martin (each mega-millionaires in their own right) who “consciously uncoupled” or like the rich and famous with iron-clad prenuptial agreements, do you have any idea of what a divorce can cost?

Prepare yourself for divorce financially: Cost of divorce in Canada

According to the results of Canadian Lawyer’s 2015 Legal Fees Survey:

$1,353 – the national average cost for an uncontested divorce
$31,330 – national average cost of a two-day trial
$56,439 – national average cost of a five-day trial
$81,958 – the national average cost of a seven-day trial

Prepare yourself for divorce financially: It costs more for two to live separately than together

Now the shock is about to set in… How are you going to manage your finances separately? Do you know what your monthly expenses are? Do you have a budget? If not, you’re going to need one now.

In all likelihood, you aren’t going to be able to maintain your former lifestyle. If you do, you may land up in a situation where you are bleeding money and accumulating mountains of debt. Are you carrying over debt from your marriage and trying to maintain your old lifestyle?

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Prepare yourself for divorce financially: What should you do if you have too much debt?

This is a difficult time but burying your head in the sand isn’t the answer. The best option is to deal with debt with the help of a professional trustee. This is especially true in a separation or divorce situation as one of the very few situations that are NOT stopped by an insolvency filing stay of proceedings are family law proceedings.

Many divorce lawyers do not understand the relationship between provincial family law and the federal Bankruptcy and Insolvency Act (Canada). You are best to consult with a licensed insolvency trustee before taking any action. You need to financially prepare for divorce.

Although your particular situation may seem catastrophic, we offer peace of mind that you will get through this and you will be able to start over. Contact Ira Smith Trustee & Receiver Inc. today. Starting Over, Starting Now you can take back control of your life and be debt-free.

Financial infidelity in marriage: Introduction

Financial infidelity in marriage is a recurring problem. Couples heading to divorce argue about many things – the kids, sex, in-laws, the house, division of labour – but a study from Utah State University and recent statistical findings from online divorce service MyDivorcePapers.com (MDP) have re-confirmed that the cause of money, not sex, is the top predictor of divorce. The study and the data show that couples who engage in financial infidelity in marriage routinely argue about their finances are setting a steady course for divorce. Many studies echo these findings, including a 2012 longitudinal study that found that money is the number one cause of tension in relationships and as a result, it’s also the top predictor of divorce.

Financial infidelity in marriage: Our definition

Financial infidelity in marriage occurs when a spouse commits to serious spending that affects the entire household without first consulting their mate. To avoid becoming a statistic couples should be doing a lot of talking about finances before saying I Do and throughout the marriage. It may not be romantic but avoiding the conversation may doom your relationship to failure. You are no doubt discussing your compatibility in many areas of life. You are more than likely not discussing your financial compatibility. The likelihood of financial infidelity in marriage may be increased as a result.

Financial infidelity in marriage: Some important considerations

Have you considered:

How you’re planning to pay for your lifestyle?

Saving for retirement?

If your spending habits are compatible?

What your financial priorities are?

Your assets?

Your debts?

A prenup?

Financial discussions need to be frank and transparent. The health of your marriage may depend on your financial health. If in the course of your financial discussions you uncover serious debt issues, it’s better to deal with the debt sooner than later.; stay away from divorce by not committing financial infidelity in marriage.

Financial infidelity in marriage: We can help you

Start your life off debt free and with a go forward plan to stay that way. For sound professional help and advice contact Ira Smith Trustee & Receiver Inc. today. We can’t guarantee you a happy marriage but Starting Over, Starting Now we can help you deal with serious debt issues and put you on a path to living a debt free life.