Breaking up without losing everything
FOR WEALTH TO SURVIVE A RELATIONSHIP
“They seemed so happy.” This is often our first reaction when we hear about the break-up of a couple whose relationship seemed rock solid. Some time later, when we discuss this separation, little bits of gossip and rumour are added to the story: “It looks like he's about to lose it all; he has to leave her the house and the car.” Sometimes, the comments are even juicier: “With all their legal wrangling, the divorce cost so much they no longer have anything, and now they're both living in basement apartments.”
We all find it hard to imagine that this could happen to us. However, statistics reveal a devastating reality: between 50% and 60% of first marriages and up to 80% of second such relationships end in failure. And, after the ensuing romantic and family dramas come those of property.
While notaries cannot save the couple or the family from the obstacles that arise in their path, they can play an extremely important role in protecting the couple's wealth and, consequently, in the “success” of the period following the break-up.
Notaries can ensure that the assets the couple has accumulated together do not disappear. The immediate concern in a separation is ensuring that the couple and their children continue to enjoy the same quality of life, insofar as possible.
Protecting accumulated wealth before separating
By making both parties aware of this concern, the notary helps them avoid the vicious circle of confrontation so that they may more easily reach a mutually acceptable compromise. This way, the notary can guide the couple and ensure that they are mindful of protecting the assets they have accumulated together and dividing them in an orderly fashion.
The notary may get involved before or after the breakup. One of the tools the notary uses in this process, in a preventive or reactive manner, is the wealth inventory. It lists all of the couple's assets and liabilities: movable and immovable property such as a house, cottage, car, RRSP and pension plan. If prepared beforehand, the inventory will be updated to reflect the situation at the time of the separation. The listing will enable the two parties to clearly understand the value of their assets and the extent of their debts before beginning to divide or, if necessary, transfer them. The notary will then direct the couple's attention to the wealth protection measures that need to be contemplated in the wake of the separation: the mandate in case of incapacity, will, life insurance, etc.
For the notary, protecting wealth also means helping the couple negotiate an amicable agreement, with no winner and no loser. This is done by means of an agreement where the family assets are divided in a fair, transparent manner, in the best interests of each spouse and the children, and which promotes an effective reorganization of the family's affairs in order to preserve the bulk of the assets collectively accumulated up to the time of separation.
The notary's skills can therefore be extremely useful in disputes that at first glance seem to have no chance of being settled anywhere but in court.