Dealing with Divorce

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Dealing with Divorce
Christopher and Elaine* (aged 47 and 45) have been married for 15 years. Over the years, they have built up significant wealth by purchasing several additional franchise locations of their business that have proven to be very successful. Hard work, keen business sense and long hours have made the franchises worth over $2.5 million. Although both Christopher and Elaine worked in the business when they opened their first location, Elaine has not been very involved in the day-to-day operations since the birth of their children now aged 12 and 10.

After strained relations for some time, the marriage has now come to an end and they have recently separated. Christopher has entered into a new relationship and is anxious to get on with his new life.

According to the preliminary separation agreement, they have agreed that Elaine will have custody of the two children and will continue to live in their family home. Christopher will be required to pay child support and education costs as long as the children are in school. As part of the settlement, Christopher will transfer half of his RRSP to Elaine. He wants to know what he needs to sign to get this done. He also wants to name his two children as beneficiaries on his RRSP.

Christopher thinks some of the joint account will need to be transferred to Elaine as part of the settlement, and is concerned about the income tax implications because there are significant gains (and some losses) in the portfolio. He also wants to transfer half of it into his name alone now.

Addressing the Situation
You, like Christopher and Elaine , may face transition planning issues due to marital changes. Let's take a look at some solutions that can help.

*Fictional characters. Any similarities between them and actual clients of BMO Nesbitt Burns Inc. are accidental.