The money-smart divorce

Before the divorce
If you're considering divorce but haven't yet separated there are steps you can take to protect your financial present and future. First, start to gather your financial information – find records of retirement savings, other assets, and debts. Not only will this information be required by the courts, it will also help you as a tool to plan your moves.

Get a copy of your credit report to see where you stand, and if you haven't established a credit record in your own name, take out a small loan or sign up for a department store credit card. Make payments on time with both.

It's also a good time to be realistic about your post-divorce budget. Look at your current income – are you working, or dependent on a spouse's salary? What about post-retirement income? Don't assume that you will be awarded spousal support, at least not indefinitely. Although the courts in Canada do attempt to relieve economic suffering of either spouse due to marital breakdown, they also award spousal support with the intention to promote self-sufficiency. If you need to polish your resume to try for a promotion or go back to school to gain some skills, this might be the time.

You will also want to open an account in your own name and begin to build some savings for moving and emergency expenses, etc.

It's also a good idea to consult with a family law lawyer. He or she will be able to tell you whether you need a lawyer going forward and can bring issues to your attention that you will need to consider. If your divorce is a simple, uncontested one, you may be able to file the documents yourself.

Make sure you separate responsibly
It's important to close joint accounts once you begin to separate households. Issues with these accounts can continue to haunt you for years after a divorce.