COVID-19 has strained many marriages. Lockdowns, job loss, and financial pressures have taken huge tolls on Canadian families. While no one goes into a marriage expecting a divorce, sometimes it’s inevitable. Divorce can trigger major financial challenges which is why many people look towards financial restructuring for help
Divorce Rates Have Increased Since the Pandemic
In a recent article published in The Sun, a Toronto family lawyer, Barry Nussbaum, expects Canada’s divorce rates to surpass the 38% average post-pandemic. “We keep tabs on people looking to separate and it’s about a 20% increase in call volume, probably more,” said Nussbaum of Nussbaum Family Law.
According to Bankruptcy Canada, the leading causes of bankruptcy are:
- Loss of employment or reduced income;
- Medical issues;
- Separation and divorce.
It’s important to understand how separation and divorce can cause bankruptcy. When people separate, their debts must also separate. This becomes tricky because marital debts can pile up. Often, there are additional spousal and child support obligations which can make payments difficult even for high income earners. If you are in this situation right now, evaluating your financial situation is critical.
Financial Restructuring Can Save You
When you restructure your debts and finances, you make them more manageable. This may involve looking for ways to reduce your debt or simply consolidate your debts and payments.
There are many financial restructuring options available for you based on your assets, overall debt, and ability to make payments.
With expert advice from a Licensed Insolvency Trustee and a qualified divorce lawyer, you can gain a clear understanding of:
- What your family maintenance will look like,
- What your future budget will look like,
- And what financial avenues are available to you.
This is the best course of action to effectively manage a spousal separation or divorce when it involves debts. You will be able to go through your divorce proceedings without the additional financial pressures.
If you are experiencing a divorce or representing a client who is going through a divorce, visit www.dldebthelp.ca or call us at 1-877-732-5457 for a free initial consultation. We can provide valuable insights to help guide you through the process.