Global News: Navigating Finances After Divorce - Insights from Shulman & Partners

January is widely recognized as the busiest month for divorce filings, a trend often linked to post-holiday financial strain and relationship stress. Media coverage increasingly highlights that for many couples, the most daunting part of separation is not the emotional fallout, but the financial uncertainty that follows. In a recent broadcast segment, insights from Shulman & Partners LLP addressed the practical realities people face when navigating divorce-related debt, income changes, and long-term financial planning. The discussion focused on how financial decisions made during separation can have lasting consequences, particularly when it comes to support, taxation, credit, and retirement planning. By breaking down these complex issues in plain language, the segment offered clarity for individuals feeling overwhelmed by the prospect of untangling shared finances and building stability after divorce.

“It’s very important to actually write down your sources of income. Many people post-divorce don’t consider what kind of income they’re getting.”
— Insights shared by Shulman & Partners LLP

The segment explored why financial stress is one of the primary reasons many people delay or avoid divorce altogether. As discussed, separating often means moving from one household supported by shared income to two households relying on the same or reduced resources. Without careful planning, this transition can create long-term financial strain.

One of the first recommendations emphasized was the importance of identifying all sources of income after separation. This includes employment income, child support, spousal support, and any other financial inflows. People often focus on what they are losing financially, rather than clearly understanding what they will continue to receive and how those funds will be taxed.

Tax treatment of support payments was a major point of clarification. Monthly spousal support payments are taxable for the recipient, while child support is not. This distinction can significantly affect settlement negotiations. Structuring support properly can make a meaningful difference in post-divorce cash flow, particularly for parents.

Another key issue addressed was financial identity, especially credit. Many individuals discover only after separation that their credit score has been affected by debts accumulated during the marriage, even if those debts were managed by the other spouse. Joint credit cards, lines of credit, and mortgages can continue to impact both parties long after separation unless addressed directly in a settlement.

The discussion also highlighted the importance of working with financial professionals alongside legal counsel. Financial advisors who specialize in divorce can help assess whether a post-divorce lifestyle is sustainable, plan for retirement, and evaluate whether existing assets can support long-term needs.

Life insurance was identified as an important but often overlooked tool in divorce settlements. When child or spousal support is involved, life insurance can be used to secure those payments in the event the paying spouse passes away. These policies are typically addressed directly in settlement agreements, with clear terms around beneficiaries and premiums.

Overall, the segment underscored that divorce is not just a legal process, but a financial restructuring. Understanding income, debt, taxes, and long-term security early can help people make informed decisions and reduce unnecessary stress during an already challenging transition.

Watch the full Global News segment here.

This media appearance is part of Shulman & Partners LLP’s ongoing contributions to Canadian family law discussions. Explore more of our media features in our In the Media  archive.