Emergency Fund

You may be questioning whether or not having an emergency fund in case of divorce is wrong.  Through our experience we may be able to clarify what having an emergency fund will result in.

As Divorce Financial Advisor’s we’ve helped many people and their divorce lawyer decide on the most advantageous to divide martial assets, compute alimony and negotiate more favourable settlements. After all that has been said and done, if I were to ask these clients what they wish they’d done differently during their marriages (financially-speaking, of course), I know without a doubt that most would say they wish they had:

• Been more aware and involved in their family’s finances, how much their partner earned and where money is being invested
• Kept more control of their own money

Being said, we have compiled a list of a few pros and cons of doing so.

Pros

Keeping a seperate account from your partner is beneficial as:

• Your partner does not have access to all of your income/funds.
• Your partner can’t control how all funds are being used for.
• Financial security to fall back on

Cons

However, there still remain a few cons in keeping an emergency fund that some may not think about.

• If kept a secret, it can cause conflict or trouble.
• When going through divorce processes there is the possibility of being accused of hiding assets.
• You could be charged with dissipation of martial assets.

Yet, each person’s financial and marital situation is different. And ultimately after reading on how an emergency fund could affect you, the decision is yours to make. Through these pros and cons you need to decide what may or may not work for your situation.

Divorce Financial Advice are here to help you make the best decision that is right for you. That is why if you are in need of financial advice do not hesitate to contact us here.