Dealing with Money Problems Caused by Divorce

	Dealing with Money Problems Caused by Divorce - Money Problems Radio Show (Opens in a new window. Optimized for Windows Media Player 6.4 and later versions.)
Originally aired on October 15, 2005.

Show Topic

Divorce, unfortunately, is very common in Canada, with over 70,000 couples getting divorced each year. Relationship break-ups are a significant contributing factor in many people's money problems.

Guests:

Douglas Hoyes and Ted Michalos are the founders of Hoyes, Michalos & Associates Inc, one of Ontario's leading personal insolvency firms. They emphasize a "fresh start" when dealing with money problems. They can be reached at www.hoyes.com or, in Ontario, at 310-PLAN (no area code required).

Show Summary:

It's obvious how divorce can cause money problems. When you're together, you have two incomes and only one bill to pay for rent, phone and other items. When you get divorced, you each now have to pay rent and living expenses, but you only have one income, which leads to money problems.

If you are going through a divorce:

	Open a new bank account to keep your funds separate
	Ask lenders to remove your name from co-signed loans if possible
	Down-size your expenses; don't try to live as if you still have two incomes
	Start a savings plan

However, there are options when you are having money problems as a result of a divorce, including getting a debt consolidation loan, filing a consumer proposal or, as a last resort, filing a bankruptcy.

You have options, so we recommend you contact one of our bankruptcy experts for advice on your situation.

Question of the Week:

Q. If I get into financial trouble and have to go bankrupt, how will that affect my ex-spouse?

A. If your ex-spouse has co-signed or guaranteed any of your debts, they will be held liable for those debts if you go bankrupt.

Don't let your Money Problems overwhelm you; contact a bankruptcy expert today for more information on dealing with problems caused by divorce.