Financial Decision-Making Best Practices

Gather Complete Financial Information

• Bank statements (6-12 months history)

• Investment account statements

• RRSP and pension statements

• Property valuations (appraisals for real estate)

• Business valuations if applicable

• Credit report and debt statements

• Tax returns (2-3 years)

Calculate Your Net Family Property

Use the formula: (All Assets - All Debts) as of separation date. Create a comprehensive inventory with values and dates of acquisition

Seek Professional Valuations

• Real estate appraisals (do not rely on tax assessment)

• Business valuations (if self-employed)

• Pension benefit valuations

• Specialized assets (antiques, collections, artwork)

Understand Tax Implications

• RRSP/RRIF divisions must use prescribed transfer methods (tax-free)

• Principal residence exemption for matrimonial home

• Capital gains tax on investment sales

• Spousal support is tax-deductible for payer (federal/provincial)

• Child support is NOT tax-deductible

• Consult accountant or tax advisor

Plan Your Fresh Start Budget

Project your post-separation monthly expenses. Separate accounts and credit are crucial. Plan for independence.

Property Division Best Practices

Source: Ontario Family Law Act, Ontario Real Estate Association - Property Valuation Guidelines

For Matrimonial Home:

• Get Professional Appraisal: Don't guess at value; formal appraisal is essential

• Obtain Mortgage Statement: Know exact outstanding amount and current rate

• Get Seller's Estimate (if selling): Realtor provides estimated net proceeds

• Understand Tax Status: Principal residence exemption should apply to matrimonial home

• Decide Timing Carefully: Market conditions affect value and decision timing

• Consider Refinancing: If buy-out option, ensure you can qualify for mortgage

For RRSPs:

• Obtain RRSP Statements: Get current valuations

• Use Prescribed Transfer Method: Avoid tax consequences through proper legal transfer

• Coordinate with Property Settlement: RRSP transfer may reduce other property owed

• Consider Retirement Needs: Don't deplete retirement savings to equalize

• Time Transfer Properly: Transfer should occur post-separation to maintain tax benefits

For Investments & Savings:

• Maintain position stability during litigation (don't liquidate or move assets)

• Obtain valuations as of separation date

• Document cost basis for capital gains calculations

• Consider tax-efficient division (e.g., don't give tax-heavy stocks to one party)

Support Agreement Best Practices

Source: Federal Child Support Guidelines, Spousal Support Advisory Guidelines

For Child Support:

• Confirm Income: Use Notice of Assessment (NOA) as basis for income

• Include All Income: Self-employment, investment income, benefits

• Review Guideline Tables: Start with table amount; adjust only if there are special circumstances

• Document Extraordinary Expenses: Childcare, medical, education, activities

• Build in Adjustment Clauses: Include provision to adjust if income changes materially

• Review Regularly: Review support annually or when circumstances change

For Spousal Support:

• Use SSAG as Framework: Follow guidelines even though courts have discretion

• Consider Duration: Don't default to permanent; use guidelines-based duration

• Build in Review Clause: Include review date rather than indefinite support

• Address Termination Events: Specify what happens if recipient remarries, cohabits, or reaches retirement

• Document Rationale: Explain why amount differs from guidelines if it does

Legal Review Best Practices

• Both parties obtain independent legal review: Each party should have their own lawyer review the agreement

• Ensure full disclosure: All assets, debts, and income must be fully disclosed before signing

• Verify fairness: Lawyer should confirm agreement doesn't unfairly disadvantage their client

• Understand implications: Ensure client understands long-term consequences of agreement

• Document waiver of rights: If any issue not addressed, ensure parties understand they're waiving those claims

Source: Law Society of Upper Canada - Family Law Practice Standards, CanLII - Ontario Legal Database

Red Flags to Avoid:

• Signing agreements under duress or without legal advice

• Incomplete financial disclosure

• Agreements that don't follow guideline-based support (unless carefully reasoned)

• Putting assets in children's names to hide from division

• Transferring assets before separation to avoid division

• Relying on informal promises instead of written agreements

• Not updating RRSP/insurance beneficiaries after separation

Ready to Work with Clearpoint Mediation?

We specialize in professional family mediation across Ontario. Our approach prioritizes your family's wellbeing while protecting your financial interests and ensuring the best outcomes for children

Evidence-Based

Sources & Citations

The best practices and guidelines are based on:

• Divorce Act - Federal Legislation (Justice.gc.ca)

• Federal Child Support Guidelines - Government of Canada

• CanLII - Ontario Family Law Act Database

• Ontario Spousal Support Guidelines

• ADR Institute of Canada - Mediation Standards

• Law Foundation of Ontario - Family Law Resources

Last Updated: December 2025 | Provided by: Clearpoint Mediation