Category Archive: divorcing

1. Tired of Reading About the “Housing Bubble?” Me Too.

   June 5, 2017 3:43 pm Comments Off on Tired of Reading About the “Housing Bubble?” Me Too.

   

   By Marian Gage

   The cost of housing has become a big issue for families who separate in Halton. It seeps into almost every negotiation or mediation as an issue…a challenge…a jackpot…depending on the family members’ goals.

   To be clear, the law has not changed. It’s the other stuff that changes now – the decisions people make when they separate and the options available to people who are now looking to live in separate homes.
   For those of us who work in Collaborative Practice and family mediation it’s all very significant. Our clients’ mutual goals are at the root of these processes.  Goals such as:

   • Residing in the same school catchment area so the children don’t have to change schools;
   • Both parents residing near each other to accommodate a shared parenting schedule; and
   • Maintaining homes with similar standards so the children feel “at home” in both parents’ residences.

   Often, one parent will purchase the other parent’s interest in a matrimonial home to allow the children to remain in the neighbourhood. These days we’re seeing house prices so high that it’s not as easy for a newly-single parent to finance that kind of a “buy-out.”

   We’re seeing situations where it might have been easy enough for one spouse to purchase the other’s interest on the day they separated, but six months later (it can take a number of months to get from the point of deciding to separate to the point where these decisions are made) that house might sell for substantially more if it were listed on the market.

   I’ve reached out to Collaborative family professionals and mediators to learn about some of the solutions their clients have come up with to try to meet their goals when it comes to the family home. In many of these situations, it’s not what a judge would do (you can talk to your lawyer about what a judge would have to do – they are bound by the law).

   Here are some of those solutions:

   Right of first refusal on sale

   In some cases, one keeps the house and the other holds a “right of first refusal” where he or she would have the first opportunity to purchase the property before it is listed for sale. I am advised that in these cases the party with this right has not exercised it and the property has been sold on the open market.

   Continued joint ownership with minimal draw

   In one case a separated spouse agreed to sell her share of the equity in the home to her former spouse based on a mutually agreed amount, however, the “selling” spouse was only taking what she needed to satisfy the down payment on her new home. For the balance owing, they signed a promissory note which paid the “selling” spouse the greater of a percentage of a future sale price proportionate to the amount owing, or simple interest at 5 per cent per year for the outstanding amount to a maximum number of years in the future.

   Defer sale

   In some cases separated spouses are agreeing to remain on title, although only one will remain in the home. They may come up with a plan to determine whether there will be continued contribution to mortgage payments and (in some cases) other operating costs. They agree on a time frame for the sale.

   Formal appraisals

   Certified appraisers will value the property (separated spouses may choose to retain one neutral appraiser who works for both of them, or in some cases they work with more than one appraiser and establish a mid-point). One spouse would purchase the other’s 50 per cent interest.

   There have been other cases where separated spouses have considered obtaining a valuation at the date of separation and a valuation at the current date to determine the percentage increase in value from separation to the date they were ready to address the issue, and then agree on some amount in between taking into account commission fees, etc.

   The issue with the formal valuations now seems to be that many houses are selling above what certified appraisers would value as their worth.

   Ignore valuations

   There have been still other cases where parties have agreed not to use the price at which they anticipate the house could be sold and instead one party has agreed to transfer his or her interest to the other for less than the expected “market value” so children can remain in the home.

   Sale on the open market

   There have a been a number of cases where the house was simple listed and sold for a lot of money. For some, the parties were happy to see how much they would receive from the sale of their home. For others, it was disappointing as one former spouse had hoped to purchase the other’s interest (they simply could not settle on an appropriate price).

   The difficulty, then, is that everybody needs a place to live and it’s not an ideal time to purchase one home, let alone two.

   I often advise my clients to seek the assistance of a Financial Divorce Specialist who can help them see their options and make sound financial decisions that work within their budgets.

   As always, when parties are working in a Collaborative process, or in mediation, there are far more options available and it’s much more likely that a family will end up with the arrangement that works best for all.

   Disclaimer: This article is only intended for information purposes and is not intended to be construed as legal advice.

   Marian G. Gage, B.J., LL.B., Acc.FM (OAFM), CS (LSUC)
   Certified Specialist in Family Law
   165 Cross Avenue Suite 301, Oakville, ON L6J 0A9
   Tel: 905-338-7941 ext 229
   Email: mgage@bgfamilylaw.ca
   www.bgfamilylaw.ca

2. Acknowledging Fear

   April 3, 2017 1:57 pm Comments Off on Acknowledging Fear

   
   By Noel da Silva

   There is no getting around the role that fear plays in reparation and divorce. Every front line professional whether they are Family Health Professionals, Financial Professionals, Coaches or Lawyers, can attest to this.

   The fear factor!

   There are many sources of fear.

   Fear can include fear of the unknown. Separation for most people a circumstance they are not familiar with. Terrible apprehension comes from asking the question “Am I going to lose my kids” in a custody and access dispute. “How am I going to manage financially”, is another very real concern. People involved in a breakup are very afraid of publicity. Sometimes spouses or partners do and say awful things to each other. Police and the Children Aid Society have often had to become involved with families. At other times it is the teacher and schools that discover the families difficult problems.

   All the professionals who help separating families in distress have a unique opportunity. We can best hold by steering our clients away from conflict towards settlement oriented solutions that reduce conflict and its damage to the children and spouses.

   A conversation that produces an accurate detailing of the steps forward to obtain a separation agreement and closure is the first step towards calming the person’s fear. Screening for domestic violence which is a necessary step in keeping abused spouses safe can be calming once the abused spouse is in contact with a family health professional healing can start.

   Even knowing the worst that can happen, while not scaring the person can have a calming effect. This won’t mean having to accept a negative ¬result or position. It does mean formulating a plan, understanding next steps and actually taking those steps this is crucial towards getting rid of the fear factor.

   Collaborative Law or Collaborative Practice is an excellent way to deal with fear. It allows for each parties concerns to be voiced and most importantly heard. Each spouse is allowed to speak from the heart and state what their goals are. This usually brings out the rational best in people. Even when a goal is to avoid problems or avoiding conflict is an expressed goal it is something concrete the professionals around the table at each collaborating settlement meeting need to understand and plan to deal with.

   Talk is not enough. It is when clients see actual progress being made that they can start to take a deep breath. When they understand that their active, informed participation in the collaborative process is important this can be calming as they themselves are taking steps to resolve the conflict.

   Clients find that the process of enquiry as to what each persons’ interests really are and what lies behind the positions they are taking is also calming as there is acknowledgement that they have been understood. Once a person in distress speaks; is heard and then is understood the next step in the collaborative process which is putting the options on the table for consideration, to solve each segment of the overall conflict, can take place.

   Acknowledging and explaining our fears is part of the healing process for everyone. So there is no need to be afraid of fear and its expression. Creative solutions customized to meet each families needs, crafted into a separation agreement that reasonably protects both parties and their children is the best solution to conquering fear.

   Apprehension built up over many years cannot be entirely eliminated. The understanding possible within the collaborative process that the parties are still a family, except one that does not look the same, is very helpful. When continuing future support are also considered and built into to the separation agreement families using the process of Collaborative Practice gain an extra measure of assurance. They may even be ready to relax with a nice beverage.

   Noel da Silva is a Partner at Simmons da Silva LLP

   Email: noel@sdslawfirm.com
   Telephone: 905-457-1660 ext 229

   Disclaimer: This article is only intended for information purposes and is not intended to be construed as legal advice

3. Focus On: The Family Professional

   July 17, 2014 9:18 am Comments Off on Focus On: The Family Professional

   

   By Marian Gage, Family Law Lawyer

   One of the most appealing qualities in the Collaborative Process is the idea of the “team model.”  Lawyers are present to give advice and advocate for their clients (in non-adversarial way) and, usually early on in the process, lawyers and parties discuss the benefit of adding additional, neutral members to the process to assist.       

   In many cases Family Professionals are an integral part of a collaborative team. 

   Sheila Brown is a registered social worker, mediator and separation coach with more than 25 years of experience whose practice specializes in working with families going through separation and divorce.   As an experienced collaborative Family Professional, Sheila explains that she can play a variety of roles in the collaborative process, depending on the participants’ needs.

   Sheila describes the most common role she takes on:  “Helping parents to work out a plan to cooperatively co-parent their children and clarify their expectations of one another with respect to the children so that they are kept out of the middle of conflict. “

   Sheila notes that she also assists parents to understand how children may experience separation at different stages of their development and how to talk to their children about separation.

   At times she will play the role of “child consultant.”  In those cases she will meet with the children and bring their voices to the process so that the parties and their lawyers can coordinate the needs of the children with the needs of different family members.

                   “Sometimes it’s important to separate the work of the parents from the emotional needs of the children.  So having a family professional who is not the same person working with parents to mediate the parenting plan is helpful.  That way parents are both getting feedback from someone that they’re not working with in an ongoing way.”

   Sheila can also work as a neutral facilitator of the process, and in that role she ensures that all of the parties have the opportunity to be heard in a safe and respectful environment.  Sheila says she sees her role as helping people to bring their “best selves” to the table, “so they aren’t negotiating from positions of anger or guilt.”

   When asked what people need to bring to the table to be successful in the collaborative process, Sheila observes that there must be some willingness for each person to look beyond their own needs and consider the needs of others, “whether it be your children or your former partner…you have to have some basic level of goodwill.”  If parties enter the process with no goodwill, or a lack of willingness to consider another perspective, a positive outcome is much less likely.

   Sheila says she works to ensure that people feel respected and heard.  “I try to work so nobody feels shamed or blamed…I try to help them determine what is really important to them and why.”

   If parties are considering using a Family Professional as part of their team they are reminded that their choice is voluntary (they must both agree before the Family Professional is engaged and, certainly, it is up to the parents whether the Family Professional will meet the children). 

   Families are also reminded that in any collaborative process it’s the parents themselves making the decisions for their family.  The Family Professional is there to help but is never a decision maker. 

   “I don’t’ make recommendations.  I will give parents ideas, tell them what the research says, or share what other parents have done in similar situations but ultimately decision-making rests with the parents as they know their children best.”

   When asked what she loves most about her work as a Family Professional, Sheila says it’s knowing that she’s helping parents to reduce conflict, which helps the children in the long term.  “It’s believing that…in some small way I’m helping to create peace in families.”

   Marian G. Gage O’Connor MacLeod Hanna LLP  700 Kerr Street Oakville, ON L6K 3W5

   Profession: Family Law Lawyer  Tel: 905.842.8030 x3312 Fax: 905.842.2460  gage@omh.ca www.omh.ca

    

   Sheila Brown, MSW, RSW, Acc.FM (OAFM)  Sheila Brown & Associates 222-345 Lakeshore Road East Oakville, ON, L6J 1J5

   Profession: Registered Social Worker & Mediator  Tel: 905-844-1200 Fax: 905-844-1255 sheila@facilitatingchange.ca  www.facilitatingchange.ca

4. Outside the Box: Using the Collaborative Process for Collaborative Agreements and Marriage Contracts

   May 15, 2014 2:22 pm Comments Off on Outside the Box: Using the Collaborative Process for Collaborative Agreements and Marriage Contracts

   

   By Marian Gage

   When a potential client comes to me for the first time, already-drafted marriage contract in hand, asking me to read it over and sign the certificate of Independent Legal Advice (and quickly because the wedding is this Friday!) I find myself looking for the nearest exit. There are no fees that can compensate me for the potential liability and I must politely decline.

   Even when there is ample time and a not-yet drafted agreement and both parties are ready and willing to make full financial disclosure I must admit marriage contracts and cohabitation agreements make me a little apprehensive. There is, whether it is real or perceived, a concern that these agreements are vulnerable to litigation to set them aside in the future if a couple separates. Even if a court upholds the agreement there is the risk that the lawyer will be named in the lawsuit. There is also the risk (inevitability?) that this happy couple, optimistically planning their lives together, must now be exposed to the unpleasantness involved in negotiating a domestic contract.

   The negotiation of a marriage contract or a cohabitation agreement must be handled with greater care, taking into account that we are working with an “intact” couple, often at the beginning of their lives together as spouses. Nobody wants to rock the boat…but we have to have some difficult conversations if the negotiations are to be meaningful.

   The collaborative process is well-suited to this type of negotiation for several reasons…
   • Both spouses and their lawyers can work together as a team to address each person’s concerns and work through potential problems.
   • Collaboratively trained lawyers and, where necessary, a neutral facilitator can work with the parties to help them talk with each other about their financial goals and interests in a way that will not appear to be adversarial.
   • The parties can exchange complete and reliable financial disclosure by discussing what is required together with their lawyers (and why it is required to make the agreement reliable) and if necessary, parties can work with a neutral financial professional.
   • Where estate planning is an issue we can include the estates lawyer as part of the team as opposed to sending the couple off to that lawyer at the end of the process to prepare wills “around” a marriage contract.

   I would think that an agreement negotiated through the collaborative process is inherently less vulnerable to a claim to set it aside in the future as it is much less likely the agreement will have been negotiated under duress, or without appropriate disclosure, or with potential for a substantially unbalanced result.

   Given the high rate of satisfaction clients have in using the collaborative process to resolve the issues that come up on separation I have been spending time working with my Collaborative Participation Agreement to tailor it a process for negotiating marriage contracts and cohabitation agreements.

   Marian G. Gage O’Connor MacLeod Hanna LLP  700 Kerr Street Oakville, ON L6K 3W5

   Profession: Family Law Lawyer  Tel: 905.842.8030 x3312 Fax: 905.842.2460  gage@omh.ca www.omh.ca

5. Marriage: One, Two or More

   March 26, 2014 8:08 pm Comments Off on Marriage: One, Two or More

   Here’s a link to an article that Marian Gage, Family Law Lawyer, and Kathryn Jankowski, Financial Divorce Specialist contributed to in Yahoo Finance!

   http://ca.finance.yahoo.com/blogs/pay-day-/financial-planning-second-marriage-182821020.html

   Enjoy!

    

6. The Second Marriage: Financial Considerations

   March 21, 2014 8:01 am Comments Off on The Second Marriage: Financial Considerations

   If you are going through the divorce process the first thought after reading the title of my blog is “Never Again!” right?  I know it was for me and, in some ways, it’s true what they say, “You don’t know your spouse until you divorce them!!”  Some divorcees move forward, embracing their independence. I know I painted my bedroom pink…because I could!  But all that new freedom aside, it tends to be a couples world.  It’s also nice to share moments in your life with someone special so, for me, I recanted my “Never Again” and did it a second time.

   Now it gets complicated, for sure.  We each had our children with our first spouses so there’s that to consider.  So, if my husband and I owned our home jointly then if I died my half would revert to him.  My husband could then go out an find a new mate and enjoy all the fruits of my labour with his new spouse.  My kids?  They would get nothing.  See how this works?  So what can you do to help prevent your dying wishes from going awry?   Consider the following:

   1) A prenuptial agreement.  Some say it make a business out of a loving relationship but I think just the opposite.  It protects each of your family’s wishes, their kids and yours, and sets the stage for a well thought out transition of wealth plan that is, hopefully, agreeable to both of you.  This may stop future feuding once the initial feelings of love and relationship newness wear off and you start to feel that, perhaps, the relationship is a little unfair, leading to potential resentment and chaos.

   2)  Own your home as tenants in common, rather than joint tenants, based on a percentage of what each of you put into the equity of the home.  I think, though, in terms of fairness, anything you both work on together, while married should be split 50/50.  I believe family law would support this as well.  Keep in mind that if your wealth is so lop-sided that, if you pass away, your spouse would be homeless, that might cause an issue.  There are financial solutions available such as purchasing a life insurance policy to offset any deficiencies in providing reasonable housing for the surviving spouse.

   3)  Did you know that when you say, “I do”, “I will” or whatever acknowledgement of entering a marriage contract is deemed appropriate for you, that your Will is null and void?  Yes, you have to renew your Will.  Funny thing is, I tried to renew my Will just days before my wedding and I couldn’t do it.  Not really but sort of….I had a temporary Will that stating…”In anticipation of marriage I intend my new Will to state…..” and then we formally re-did it when I returned from my honeymoon.  Needless to say, I avoided that sky-jumping opportunity, on my honeymoon, when it presented itself.

   4) Check the beneficiaries of your registered plans.  Remember that RRSP’s and the like, transfer to a spouse tax-free on first death but they are taxed to anyone else you many want to bequeath…such as your children.  Lastly, on this note, depending on how your Will is written, if you leave your RRSP assets to your children your Estate pays the tax which could be as high as 46.41%, or roughly half, and the kids get the full value of the RRSP.

   I advocate that a well-thought out plan can save many years of potential resentment and put you both on a fair playing field right from the get-go….so you can enjoy the feeling of being protected, financially, for you and future generations.

   My advice?  Have a well thought out plan before you stroll down the isle.  It may save years of grief if you don’t…and it will set you on a good path to enjoy your new marriage.

7. Financial Disclosure in Family Law

   March 12, 2014 10:16 am Leave a Comment

   

   By Kathryn Jankowski, B.A., CFP, FDS, FCSI

   Chances are, if you are reading this post, you, or a close friend or relative, is going through the divorce process.  Overwhelming ranges of emotions and lack of clarity may be prevalent but add to this the need for the accumulation of all your financial documentation …all this can add to the stress of it all.

   So what do you need to provide to your lawyer or mediator?  Here’s the list:

   1) The last 3 years of tax returns.  Not only that but your Notice of Assessment as well.  Just because you disclose what you thought CRA wanted to know it doesn’t mean your return was assessed as filed.  There may have been some discrepancies as to what CRA has and what you filed.

   2) Pay stubs for the most recent pay periods.  If you get paid bi-weekly then a month’s worth of pay stubs will ensure that all your employer-based savings plans and other employment-related fees are all captured.

   3) Bank Statements.  Some of the bank statement could be in your name, the name of you and your spouse or in a business name.  All that needs to be disclosed as well.

   4) Brokerage Statements.  Or any investment related statements including taxable accounts, Tax-Free Savings Accounts and any registered plans such as Registered Retirement Savings Accounts and Registered Educational Savings Plans.

   5) Credit Card Statements.  This would include Visa, Mastercard as well as any lines of credit.  Also, if you have lines of credit are they secured lines or unsecured?

   6) Statements from pension plans, profit sharing retirement plans, employee share purchase programs and any other employer-driven savings plans.  If you were employed by the same employer before the marriage you might want to seek out what the value of these savings plans were before the nuptials as well.

   7) Real Estate valuations.  I strongly recommend getting an appraiser to do this job.  Not a real estate agent, an appraiser.  This valuation would be for the principle residence as well as any recreational properties or investment properties.

   8) Mortgage Statements.  Term.  Amortization. Mortgage rate.

   9) Insurance.  Both health insurance, even if it is covered by your employer, and life insurance, whether it be a group benefit through an employer or your own personally owned plan.

   10) Business Interests.  If you own your own business all the details of your business must be disclosed such as tax filings (if they are filed separately from your own return) and audited business statements.  Typically, business valuators have to come in to do an assessment as to the value of the business.

   I would advise that you get all this together even before you go see a lawyer…to save time and, potentially, some legal fees.  Keep in mind, too, that there are other experts out there that can help with the disclosure documents….such as a Financial Divorce Specialist.

8. Family Law Disclosure

   March 10, 2014 12:30 pm Leave a Comment

   

   By Paul Steckley

   I’m reminded of a situation that really brings home the importance of being honest and frank in your disclosure in a family law matter, whether it in a  litigation setting or collaborative, which I’d like to share.  It involves a divorcing couple, where both the husband and wife felt they were each owed an equalization payment from the other.  The main area of disagreement between them was that the wife had been operating a business prior to separation that she claimed had stopped operating and was essentially worthless at the time that the parties separated.  She even went so far as to hire a certified business valuator who completed a report indicating that the business was essentially worthless as it was not operating and had no assets on the valuation date.  The husband knew that he business had stopped operating but disagreed that the business was worthless as he knew that some of the business’s assets were unaccounted for.  The matter proceeded to trial, where it was revealed that the wife had in fact been less than truthful.  She was forced to admit that not only had she hidden some assets from the business but that at least one of the assets was fairly valuable and had been sold recently.  She had even gone so far as to hide this information from her own lawyer.

    

   This shocking revelation basically lost her the trial, as the judge found that she lacked credibility and that her evidence, including the evidence of the business valuator, had to be ignored completely.  This even included her evidence that proceeds of the sale of the asset were subject to taxation and the payment of legitimate debts.  Because of her lack of credibility, the judge ignored everything expect for the gross value of the sale.  The end result was that the wife had to make an equalization payment to the husband, a significant swing from the result she had attempted to manufacture, and probably more than what would have happened had she been honest in the first place.  Had the true value of these assets been disclosed earlier, the business valuator might have been able to minimize the effect by factoring in taxes and various costs associated with the assets, reducing their value and perhaps eliminating the need for the equalization payment.  It is easy to see why she was lured to the idea of hiding assets, thinking that it would give her an advantage in the litigation.  However, in this case the lack of full and frank disclosure did not pay the dividends she was expecting.  And not including her lawyer in on this subterfuge meant that she denied herself the benefit of guidance from her lawyer that may have made her realize that her attempts would ultimately backfire.  As well, a costly trial was inevitable since the husband knew she was being deceitful.  It is always best to bring forth all the information you have, and provide it to your spouse, your lawyer, and your financial professional so that it can be dealt with.  In the end it will be less costly and will likely lead to a settlement much earlier in the process.

   Paul Steckley, B.A. (Hons), LL.B. 102-2680 Matheson Boulevard East Mississauga, ON, L4W 0A5	Profession: Family Law Lawyer Tel: 905-487-5467 Fax: 905-487-5465 paul@paulsteckley.com www.paulsteckley.com

9. The Stigma of Divorce

   March 6, 2013 11:18 am Leave a Comment

   By Kathryn Jankowski

   Statistics Canada released new 2012 data stating that 40% of all marriages end in divorce. With such a high percentage (albeit in a decline in recent years) why is divorce still a taboo, personal matter? Well, other than slinging the ‘he-did’, ‘she-did’, shame-blame personal stories that get flogged it appears that our own transitions are regarded as personal whereas some love to hear the gossip of what happens behind others closed doors. Let’s have a look at Tori Spelling and the recent Star Magazine cover stating that her and 46-year old hubby are going splitsville. Tabloids, hungry for buyers who are, in turn, hungry for gossip know that this stuff sells!

   Tori Spelling retorts in her blog and the Star Magazine releases her story that the claims are false ( http://www.star-magazine.co.uk/posts/view/47253/Tori-Spelling-angry-as-false-divorce-reports-upset-son/ ) but like all gossip….it’s been said, right?
   So, since this is a blog relating to collaborative divorce then what’s the tie-in you might ask? Collaborative divorces are completely private. No one can request court records or negotiation materials which are open to the public…because there aren’t any. Robin Williams knew this when he went through the collaborative process just a few short years ago. No mud-slinging!!…and no one knows what the settlement was between him and his wife. If you know of someone who might be wanting some privacy during their divorce proceedings you might want to look at the collaborative process.

   Kathryn Jankowski, B.A., CFP, FMA, FDS, FCSI
   Vice President and Financial Divorce Specialist

   T.E.Wealth
   710-26 Wellington Street E.
   Toronto, ON
   M5E 2S3

   416-640-8591

    

10. Tax Tips for Separating Spouses

    February 20, 2013 1:40 pm Leave a Comment

    By Bronwen Bruch

    

    Financial Professionals on a Collaborative Team provide expertise around the financial ramifications of separation.

    Since we are approaching tax time, I thought I would provide you with some tax tips.

    1.  Spousal support and your pay cheque: If you are employed and you make spousal support payments, you can ask the Canada Revenue Agency (CRA) to authorize the reduction of the amount of income tax that your employer is deducting from your pay.  Instead of waiting until April of next year for the government to send you a refund cheque, you can have a significantly higher monthly net pay now.  Send a completed Form T1213, Request to Reduce Tax Deductions at Source, to you tax services office.

    2.  Shared Custody and claiming your children on your income tax return:  You may have heard that if you are the payor of child support you are not entitled to claim the Amount for Eligible Dependent (or the old Equivalent to Spouse credit).  This is sometimes true.  However, when there is shared custody and both spouses have sources of income, it may not be the case.  This credit could provide you with a refund of over $2,000 each year, so it would be in your best interests to discuss this with a Financial Divorce Specialist.  And if you find out that you are entitled to claim the Amount for Eligible Dependent for one of your children, you may also be able to claim the Child Amount.

    3. Tax implications when separating spouses divide their assets:  Separating spouses go through a process of dividing their assets.  Listing the values of each of their assets is just the first step int he process.  They also need to take into consideration the tax that would need to be paid if the asset were sold.  For instance, if one spouse kept a house worth $400,000, this would not be equivalent to the other spouse keeping the RRSP’s worth $400,000.  Why?  Because when the RRSP’s are withdrawn, tax has to be paid on them, so in essence, they are worth $400,000 less taxes.  Since taxes are not paid when the house is sold, the house is actually worth more than the RRSP’s.  And to complicate things more, there is the question of what tax rate should be used on the RRSP’s?  There are many more questions around dividing investments or pensions and the tax implications. Again, a Financial Divorce Specialist could guide you through this process.

    Separating clients are served very well when they decide to negotiate a separation agreement the “Collaborative” way.  Collaborative Family Lawyers know the law, and are trained to advocate for their client with a collaborative approach.  Family professionals are called upon for their expertise around parenting plans, and Financial professionals are called upon for their expertise around separation finances.  Collaborative Professionals feel that 3 heads are better than one, and the best part is that the couple are not paying 3 times the cost.  It will often be less than the alternative.  Each member of the Collaborative Team will take on the pieces that they have expertise in.  And the ultimate goals is that the couple and the collaborative professionals will create a quality separation agreement that will serve the couple well in their future separate lives.

    Brownwen Bruch, BMath, CMA, FDS

    Certified Management Accountant
    Financial Divorce Specialist
    Financial Family Mediator
    

    THE TAX MANAGEMENT CENTRE
    14-2530 Sixth Line, Oakville, ON L6H 6W5
    T: 905-257-6528  F: 905-257-4221
    bbruch@taxmanagementcentre.com
    www.taxmanagementcrentre.com

     

     

     

     

     

     

     

11. Moving On…

    February 19, 2013 2:57 pm Leave a Comment

    

    By Marie Nickle

    We have to accept, as Collaborative Professionals, that the Collaborative process is not a panacea.  There are many individuals who simply just want to remain in conflict and all the helping to communicate and constructive problem solving we, as conflict resolution experts, can muster will not work.  There is one simple condition needed to assess whether the Collaborative Process is fitting for the case and that is whether the parties are ready to move on from the conflict.  Simple, in that this is the one condition needed, yet not so simple to ascertain.  Of course, most will say they are ready to move on, but behaviour will dictate otherwise.  Absent influence, intimidation, and so on, a party’s readiness to be objectively reasonable is the indicator as to whether that party is ready to move on from the conflict. As lawyers advising our clients, it is as equally important to direct our clients correctly on process, as on the substantive legal issues. If the Collaborative process is the right process, then the client needs to know.  However, the client also needs to know if it is not.  Regardless, due to the last twenty years of sweeping ADR (Alternative Dispute Resolution) trends, lawyers need to be apprised of what is out there so they are in a position to properly advise and be responsive to their clients’ needs.  This has resulted with more up-front work needed by the lawyer with the client.  This simply forms part of the new way to practice law, and in particular, Family Law.  If done well, the lawyer will understand whether the client is truly ready to move on…or not.

    Marie Nickle is a lawyer and mediator.  She also trains lawyers and other professionals in the Collaborative Process of Dispute Resolution.

    Marie B. NickleThe Galleria 204-1715 Lakeshore Rd. West Mississauga, Ontario L5J 1J6

    Profession: Family Law Lawyer, Mediator, Collaborative Trainer Tel: 905-823-1232 Fax: 905-823-7104 mariebnickle@bellnet.ca www.mbnlegalresolutions.com

12. Kevin O’Leary’s Cold Hard Truth on Collaborative Divorces

    January 29, 2013 4:01 pm Leave a Comment

    

    By Meredith Cox

    Kevin O’Leary is everywhere.  On the internet, on the radio, on bookshelves and on television (Dragon’s Den, Shark Tank and The Lang & O’Leary Exchange). In his new book, Cold Hard Truth on Men, Women & Money, Canada’s financial guru shares his opinions on just about everything from the use of Botox and fillers to “How to Spot a Gold Digger”.  He says we should repair our finances and not our faces.  Good to know.  He insists rich people need a prenup because good looking gold diggers are willing to date a person who is a lot older, uglier and wealthier than they are for profit.  No shock there!  We can all silently come up with tons of celebrity and real life examples.  Hmmm…

    The book’s brutally honest dissection of our relationships with each other and money makes a lot of sense.  As I read through the chapters relating to each stage of life, I reflected on where I might have gone wayward. I thought hard about the perils of “Ghost Money” (lattes, lunches and glossy magazines).  I inwardly promised to do better and congratulated myself on the smart decisions I had managed to implement so far.  From now on the balance in my “Money Karma” account will be on a perpetual upswing.

    As a Family Lawyer, I was pleased to learn Mr. O’Leary also has strong views on the merits of Collaborative Divorce.  Unlike the traditional litigation model, collaboratively trained lawyers are not adversaries.  They will work with you and the other lawyer to obtain the best outcome possible for your family.  In his analysis of how to fix or prevent various money mistakes available to us as we go through life, he gives a concise prescription for avoiding the twin legacies of agony and financial bleeding that can go along with divorce court.  I have broken it down into two categories:  no cost self-help and outside help you have to pay for.

    SELF-HELP AND YOUR CHILDREN

    1.  Be compassionate and respectful to your spouse.  Don’t let rage and jealousy cloud your judgment.  You might end up spending more money.

    2.  Do your own research on the law and the process that will work best for you.

    3.  Get and organize all your financial information.  Make your own copies to save money.

    4.  Money you have set aside as RESP’s for the children should remain in place for their benefit.

    5. Put your children’s needs first.

    OUTSIDE HELP

    1.  Don’t try to divide your assets without getting some professional help.  It can be complicated.  Property settlements are permanent.

    2.  Get lots of counselling from a mental health professional.  Stay in counselling.

    3.  Find a collaborative lawyer.  Consider mediation.  Avoid going to court.

    Meredith Cox Sweatman Law Firm 11-1400 Cornwall Road Oakville, ON L6J 7W5

    Profession: Family Law Lawyer  Tel: 905-337-3307 Fax: 905-337-3309  meredith@sweatmanlaw.com  www.sweatmanlaw.com