Is There a Best Time of Year to File for Divorce?

If you’re thinking about ending your marriage, you may wonder whether there’s ever a “right” time to do it. After the holidays? When the kids finish the school year? Once your income tax return is filed?

The courts in Ontario are open all year, so there’s no “season” when divorce is legally easier or harder to start. But timing still matters, just not in the way most people expect.

Your Separation Date Matters More Than Your Filing Date

It may come as a surprise that your separation date usually matters more than the date you file for divorce. Under the Ontario Family Law Act, that’s the date you and your spouse formally separated – meaning when began to live in separate homes and apart with no reasonable prospect of getting back together.  That date becomes what is known as the “valuation date” for calculating your Net Family Property (NFP).  That NFP figure is part of an equalization exercise, that involves determining the value of your respective assets and debts (subject to certain deductions and exclusions), to calculate whether one of you owes the other an equalization payment.

All this simply means that the timing of your separation can have significant financial consequences, even if you do not apply for a divorce until much later.

Financial Timing

Next, there’s the finances to consider.  Naturally, the optimal timing of your separation and divorce will depend on your and your spouse’s individual circumstances.  Here are just some things to think about before you make any decisions:

• Bonuses, commissions and year-end pay. If either of you received a significant bonus or other employment compensation, the timing of your separation may affect how that money is treated when calculating property division or support. The date of payment is not necessarily decisive, so it is worth obtaining legal advice before making assumptions.
• Tax season. Separation can affect each of your tax situations, including your eligibility for certain credits and benefits. Your income and tax information may also be relevant to calculating support. An accountant can help you understand the financial implications.
• Home, lease or mortgage. A mortgage renewal, the end of a lease, or conditions in the real estate market may affect when it makes sense to sell your home or arrange for one of you to buyout the other. These practical considerations can be addressed as part of your separation planning.
• You’ll both need to assemble your financial records, including tax returns, notices of assessment, and statements for your bank accounts, pensions and investments. Gather records to show what your financial status was at marriage, and also where things stood at separation.

Emotional and Family-Related Timing

In connection with the timing of a separation, the decision can involve many personal, emotional, and even sentimental elements:

• Many people wait for after a birthday, or holiday, so that the occasion is not soured by the decision to separate. They may also want to insulate extended family and avoid having the separation announcement over-shadow the festivities.
• Others want to get it over with as soon as possible, or may want to get ahead of romantic occasions such as a wedding anniversary, or Valentine’s Day.
• If there are children involved, some parents may want to wait until after the end of the school year.

All of these can be valid, depending on your situation, and it will take some introspection to determine the right time.  And if you have children, you will also want to factor in the right time to tell them, so that their transition and emotional processing will be easier.

Finally, it’s also fair to ask yourself whether you’re ready. Do you have people you can lean on? Do you know where you will live? Would talking to a counsellor help?

There’s rarely a perfect moment, and it can be stressful and emotionally challenging process no matter when you separate.

When You Shouldn’t Wait

Naturally if the timing isn’t right, you will want to avoid rushing into the separation/divorce process. On the other hand, sometimes waiting isn’t the right choice, either.  Here are some things to think about:

• If you or your children are experiencing family violence, your safety takes priority over any calendar or financial considerations. You may need legal advice and a safety plan before telling your spouse that you intend to separate.
• Financial concerns. If your spouse is draining accounts, concealing assets or running up significant debt, obtaining legal advice promptly may help you understand your options for protecting your financial interests.
• Canadian divorce law does impose some deadlines for spouses to assert certain claims against each other.  Long delays can mean missing out on getting what you deserve.

The Best Time Is When You’re Prepared

There’s rarely a perfect time to separate or file for divorce. Rather than focusing on a particular month or season, consider your financial circumstances, your children’s needs, and your own readiness.

Understanding your legal rights and obligations can help you make informed decisions about when and how to move forward.  If you’re considering separation or divorce, contact our office. We can help you understand your options and plan your next steps.