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.

A dispute resolution officer (DRO) is a lawyer who is a member in good standing of the Law Society of Upper Canada, has practiced primarily in the field of family law for a minimum of ten years, and has been appointed to assist the judges and the court system. At Toronto’s divorce court—the Ontario Superior Court of Justice, the DRO meets with separated spouses before their case proceeds to a hearing before a judge to attempt to resolve their case, or at least to narrowly define the issues and create a timetable to proceed to a hearing.

DRO’s are typically involved in cases where one spouse is applying to the court to change a child support order or to change the parenting plan. The programme has been very successful. Approximately two-thirds of the cases are settled by the DRO without proceeding before a judge. Those cases that do proceed to a hearing before a judge have benefited by the DRO assisting the parties in defining the issues and ensuring that the proper evidence is submitted to the judge.

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.