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How Can I Protect My Savings During a Divorce?

Divorce is a difficult time financially. One spouse will probably move out of the house, which means that each spouse is paying to maintain a household. Even more alarmingly, your spouse might have access to a joint savings account, and you could fear they will suddenly withdraw all the money. At RPB Family Law, our team of Ontario divorce lawyers is ready to assist you in any way we can. Call us to schedule a consultation with our office.

Steps to Take to Protect Your Savings

We encourage anyone contemplating divorce to contact our firm for assistance. The last thing anyone wants is for an angry spouse to “strike back” and empty a bank account. If that happens, there are ways to deal with it through post-separation accounting, however, that sometimes takes time and significant legal fees. 

We recommend you take these steps:

  • Consult an experienced Ontario property division lawyer. A lawyer will help you understand the best way to protect your savings. Every person’s case is unique, and this article can only provide general advice.
  • Protect your credit cards and separate accounts. You might have credit cards in your own name. These might not be joint accounts. You should keep them secure so that your spouse does not have access to them. Change the password to your personal computer, because credit card information might be stored on Windows.
  • Open separate accounts. You might have only a joint savings account. That is quite common with married couples. You can open separate accounts and move half of the money into them. Don’t share information about your separate account with your spouse. They have no reason to access the account while you are divorcing. Again, you want to avoid a spouse emptying your savings as you try to regain your footing after separation.
  • Develop a new budget. Living as a single person will be a change. You need to plan now for how much you will need to live on and then stick to the budget. 

These are critical first steps to ensure that you maintain financial stability during the divorce process.

How Savings Are Divided in Divorce

Married couples often accrue considerable assets while married. A bank account is an asset which will probably be considered part of your net family property. Other assets include real estate, motor vehicles, and even digital assets like cryptocurrency. Anything you obtained while married is usually considered when calculating an individual spouse’s net family property and subsequently the couples equalization. There are some narrow exceptions we can talk about in a consultation. In Ontario, the Family Law Act spells out the process to calculate Net Family Property and Equalization. 

For some couples, determining how to deal with debts and assets is stress-free. For many others, this issue is fraught with conflict. Hire an experienced divorce lawyer. Handling a divorce on your own is a good way to end up receiving much less than you are entitled to.

Dealing with Financial Misconduct

Under the Family Law Act, you might have legal recourse if your spouse recklessly depleted assets. For example, the Act states a judge can order a larger or smaller equalization payment if one spouse recklessly depletes family property.

That’s a powerful remedy—in theory. In reality, a married couple might have few assets. Maybe your house is underwater with a large mortgage and your savings account represents most of your marital assets. Trying to get a larger “equalization payment” is a tall task if your spouse is broke.

The Importance of Financial Records & Disclosure

Divorcing couples must make full financial disclosure. Some people are tempted to “hide” savings or investment accounts because they don’t want to divide them as part of the divorce. Any attempt to hide assets could spell doom.

We recommend gathering all relevant financial records and sharing them with your divorce lawyer:

  • Savings account statements. The bank should mail them to you each month, but most banks now provide electronic copies which you can get by logging into your online account.
  • Proof of income. You can use a paystub, pension stub, or other proof of income. Self-employed people also must report their income, including commissions or tips.
  • Personal income tax returns. Find your returns for the last three years.
  • Notices of assessment that you have received for the past three years.
  • Proof of investment income. Do you invest in stocks, bonds, or mutual funds? Share the most up-to-date financial information.
  • Any social assistance, workers’ compensation, or employment insurance benefits.

This financial information will assist your lawyer with filling out the required financial disclosures.

Speak with Our Exceptional Ottawa Property Division Lawyer Today!

Call RPB Family Law today to speak with an Ottawa divorce lawyer. We can move quickly to protect your savings if you are contemplating divorce. All meetings are strictly confidential.

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