BMO Private Wealth
January 9th, 2024
No one gets married with the expectation of one day filing for divorce, but it happens to somewhere between 38% and 48% of Canadian marriages.
Whether you’re the primary breadwinner in a double-income household or you rely on your spouse’s income, studies show that it is a woman’s income that is generally reduced by a wider margin than her husband’s – in a traditional marriage – when their marriage dissolves.
Unfortunately, high-achieving couples may also face more complexities in the divorce process owing to the large number of assets, shared business ownership, investments and more. That’s why it’s important to prepare for the worst while hoping for the best.
10 ways to divorce-proof your assets and protect your wealth:
- Consider a prenup (or a postnup)
- Document gifts and inheritances
- Get your timing right if you do decide to leave
- Don’t knee-jerk liquidate
- Review your estate plan
- Avoid keeping everything in joint accounts
- But don’t hide assets
- Make a comprehensive list of all your assets and liabilities
- If things do go south, consider a mediator
- Don’t pay for things you don’t own
Having a plan in place – in the form of a prenup or postnup – will go a long way in providing both partners with peace of mind in the event of a relationship breakup.
While this article focuses on legal marriages, all of the above points would be valuable courses of action for someone in a common-law relationship. It’s important to note that the law does differ in many ways, and you would want legal advice on your individual situation.
