How much would divorce really cost me?

I’m recently divorced so I’ll chime in.

It starts as a math equation.

Your net worth on the date of the separation (assets minus debts) - Your net worth on the date of marriage (assets minus debts) = A

Her net worth on the date of separation

Her net worth on the date of marriage

B

A+B = net family property

Typical, you are both entitled to 50% of the net family property. And yes, your house will be included. My house was purchased just before marriage (and was in my name only) but since it was considered the marital home, he was entitled to half the value of it. Depending on who has the higher net worth, that person will have to make an equalization payment.

So if your net worth is 200,000 and hers is $100,000, you will need to pay $50,000 so you are both at $150,000.

Since there is a difference in income, spousal support will be on the table for 0.5 to 1 year for each year marriage (or, more accurately, cohabitation).

Everything is negotiable in a divorce, so it depends on your approach, her approach and the type of expertise involved (collaborative lawyer, standard family lawyer, mediator, etc.) In the end I made an offer to my ex that was lower than what I was entitled to, but it would expedite things and stop the ongoing lawyer bills.

Accept you’ll take a financial hit but it will be temporary (and most importantly, WORTH IT) and avoid court if you can.

For what it’s worth, two years post separation and 6 months officially divorced, I’m financially better off than I ever was when I was married.

/r/PersonalFinanceCanada Thread