Divorce Financial Planning and Mediation Services

Divorce is a complex process full of emotion and uncertainty. Achieving an equitable settlement can be a challenge for couples with unique financial situations, especially in cases where one spouse is unfamiliar with the family finances. A Chartered Professional Accountant (CPA) can offer independent professional advice to arrive at a settlement that protects your financial interests while developing a pracical strategy for moving forward.

Partnering with a seasoned accountant from Method CPA offers more than just financial solutions; it's an investment in understanding. Our experts provide the guidance and insights to educate and empower you to overcome financial obstacles and achieve your goals. As professional financial mediators, we remain neutral, helping you understand your options and reach a fair resolution based on a clear and comprehensive picture of your finances.

Our team at Method CPA brings extensive experience in mediation and education to sensitive family financial matters. We facilitate constructive dialogue and guide you towards fair and equitable solutions that prioritize the best interests of your children, while expertly handling complex tax and financial planning scenarios.

Financial Planning Services for Separation and Divorce

  • Mediation representation and financial advisor

  • Asset and debt identification

  • Income and expense analysis

  • Determine if a business valuation and income report is needed

  • Secondary opinions on draft business valuations and income reports

  • Cash flow analysis and post-divorce planning and projections

  • Examination of supporting documents

  • Post-divorce planning and projections

  • Budgeting, financial management, and retirement planning

Financial Components in Divorce Settlement and Mediation in British Columbia

It's important to note that these are general components, and the specific details of your case will depend on individual circumstances. Consulting with a family law lawyer is crucial to ensure a fair and equitable settlement. Lawyers are not experts in asset valuations, cash flow management and tax planning so it is important to consult an expert on the financial implications.

  • Property Division

  • Debt Division

  • Spousal Support

  • Child Support

  • Tax Implications

Property Division

A fair and equitable division of assets helps ensure both parties have the resources they need to maintain their standard of living after the divorce. Property division can have significant tax consequences so consulting with a tax professional at Method CPA can help minimize your overall tax burden. While a fair and efficient property division process can help reduce stress and anxiety during an already difficult time.

  • Family assets and debts acquired during the marriage

  • Real estate (homes, properties)

  • Vehicles

  • Bank accounts and investments

  • Retirement savings plans (RRSPs, TFSAs, pension plans)

  • Business interests and if a business valuation is needed

  • Personal belongings

  • Excluded assets

Debt Division

In British Columbia, dividing debt in a divorce is crucial to ensure a fair and clean financial break for both spouses. It clarifies financial responsibility, protects credit scores, and allows for a fresh start. BC law generally presumes a 50/50 split of debts acquired during the relationship, but this can be adjusted if it would be "significantly unfair" considering factors like each person's contribution to the debt, earning potential, and who will care for children.

  • Division of debts incurred during the marriage

  • Credit card debt, loans, mortgages

Spousal Support

Is intended to acknowledge any economic advantages or disadvantages that one spouse may face as a result of the marriage or its breakdown. It is also intended to share the financial burden of caring for children and alleviate the financial hardship that may arise from the separation or divorce while encouraging each spouse to become financially independent.

  • Ongoing financial support to a spouse after separation

  • Based on factors like income disparity, duration of marriage, and needs of the receiving spouse

  • Can be time-limited or indefinite

  • Economic implications, the time value of money, and investment rates of return

Child Support

Child support is vitally important in a divorce for financial security of the child, share responsibility, and promotes stability in the best interest of the child. In British Columbia, child support is determined based on the Federal Child Support Guidelines, which consider the pre-tax income of the paying parent and the number of children. Child support is the right of the child, not the parent.

  • Financial support for children

  • Calculations based on the Child Support Guidelines

  • Covers costs like housing, food, clothing, and education

  • Extraordinary expenses for school, sports, and other extracurricular interests

Tax Implications

Consulting with a tax professional to optimize the financial outcome and ensure that there is adequate after tax cash flows available to each individual.

  • Understanding the tax consequences of property division and support payments

  • Unwinding assets from a corporation, holding company, and family trust

  • Restructuring corporate holdings