The old adage “a dollar save is a dollar earned” leads to the real question of how to minimize the financial cost of a divorce.

Here are 2 simple tips:

1) Prove it. You can’t deduct what you can’t prove. This applies to all assets that you owned when you got married and any assets that you accumulated from gifts and inheritances during marriage. You also will need to prove any debts that you have at separation if you want to deduct them. If you can’t prove the assets you owned at marriage, any assets from gifts and inheritances during marriage and any debts existing at separation, you will be parting with much more of your money at separation. Conversely, you need to uncover and prove your spouse’s debts at marriage and assets at separation. These figures too will either increase what your spouse pays you or what you collect from your spouse. So in conclusion, keep good records. This includes all of your tax returns and monthly bank, investment and credit card statements. A home video of your possessions at marriage can be very useful.

2) Be informed. Education is power and power is valuable. Meet with a Family lawyer to know your rights and obligations resulting from cohabitation, marriage, children, death and divorce. Each event will trigger a different set of rights and obligations.

The unforeseen financial consequences of divorce can be avoided or diminished with knowledge and planning.

Mediation is a process whereby the spouses jointly retain a professional mediator to help them reach an agreement that they are both comfortable with. Usually, only the spouses, without their lawyers, will meet with the mediator. The role of the mediator is to help the spouses arrive at their own agreement. The mediator’s role is not to give an opinion or force one spouse to accept the other spouse’s terms. It is certainly not the role of the mediator to give legal advice.

Even when the spouses decide to mediate their issues, it is most advisable for each spouse to have a lawyer provide him or her with legal advice.

Ontario’s Family Law Act provides a formula for dividing the value of assets and debts that were acquired during the marriage. The method is called equalization of net family properties. Each spouse must fill out and swear a financial statement. The financial statement lists all assets that each spouse owned on the date of separation, all debts that each spouse owned on the date of separation, all assets that each spouse owned on the date of marriage, all debts that each spouse owned on the date of marriage and any gifts or inheritances that each spouse received during marriage. The financial statement will be used to calculate each spouse’s net family property. In the end, the spouses’ net family properties will be equalized.