divorce isn’t just an emotional upheaval—it’s also a major financial reset. Yet, it’s one of the worst times to make critical financial decisions. The combination of emotional stress, sheer exhaustion, and decision fatigue often leads to poor choices.
As Lena Keshysheva, founder of B.C.-based Sapling Financial Planning & Wellness, explains: “While I encourage people to start thinking about financial planning, I also recommend waiting on big decisions like purchasing life insurance, changing investment advisers, or buying a new home until there’s clarity.”
She warns against “decision-making burnout,” a common issue during divorce. Instead, she urges people to assemble a support network that includes legal and financial experts—and to take things slow. One essential step: always seek legal guidance.
“People tend to try to save money by avoiding legal advice,” Keshysheva says. “That’s a bad idea. Legal guidance is non-negotiable.”
Financial Literacy is Key
Colin White, CEO of Verecan Capital Management in Halifax, points out that divorce often exposes a financial knowledge gap between spouses. It’s rare for both partners to have shared responsibility for every aspect of household finances.
“Everybody’s going to have to learn things they maybe weren’t paying attention to,” White says. For example, one spouse might manage day-to-day budgeting, while the other oversees investments. This division of responsibility can create vulnerabilities if one spouse discovers “financial infidelity,” such as hidden debts or assets.
Parenting Time Battles and Emotional Costs
Money issues might sometimes be negotiable, but when children are involved, emotions run higher. “Parenting time battles are usually the most contentious and expensive part of divorce,” says Keshysheva. She advises keeping emotional turmoil out of legal proceedings.
White echoes this sentiment: “Divorce tends to be super emotional, and there’s often an urge to punish the other party financially. But that always backfires.” Contentious divorces lead to higher legal fees and seldom result in better outcomes. He offers a blunt reminder: “A therapist is cheaper than a lawyer.”
Sever All Financial Ties
One of the most common—and costly—mistakes in divorce is failing to sever financial ties. Whether it’s jointly paying off a car or managing a shared RESP (Registered Education Savings Plan) for the kids, lingering financial entanglements can create complications down the road.
White explains: “If one ex-partner falls on hard times and can’t make payments, that becomes your problem. You’re setting yourself up to be financially attached to someone you’ve chosen not to be married to.”
Remarriages or changes in circumstances can make these arrangements even more fraught. Severing financial ties completely helps both parties move forward without the risk of future disputes.
Avoid the Social Media Trap
In an emotional and isolating time, it’s tempting to turn to social media for advice or validation. However, financial experts warn against it.
“Often, social media advice is clouded by opinions, biases, and personal experiences,” Keshysheva says. “That just adds confusion to an already stressful situation.”
Social media posts can also be used in court as evidence of financial mismanagement or even to document assets. Keeping your online presence professional and hiring experts to handle your legal and financial matters is always a better approach.
Moving Forward
Divorce is one of the most challenging chapters in life, but having the right team of professionals can make it manageable. Financial planners, lawyers, and even therapists each play a role in ensuring you emerge from the process on solid financial and emotional footing.
At Russell Alexander Collaborative family Lawyers, we understand the complexities of divorce, both financial and personal. Our team is here to guide you every step of the way—ensuring you have the clarity and support you need to build your future.
