top of page
Search

It Takes a Village: 7 Financial Things to Consider Before or During Mediation

Updated: Apr 24

Written by Amanda Amrita Dindayal, Financial Coach & Mortgage Agent, from Red Pocketbook


“I Never Thought I’d Be Here…”


I’m sure you never thought you’d be reading a blog about divorce—about your own divorce. Life doesn’t always follow the path we planned. And when everything feels like it’s shifting, it can be hard to know where to even begin.


But here’s something I remind all my clients: you don’t have to do this alone. It takes a village, and it’s okay to ask for help. In fact, it’s smart to ask for help—especially when it comes to your finances.


As you work through mediation or settlement, here are a few things to keep in mind that could save you time, stress, and even thousands of dollars down the line.


financial

Real Talk: A Quick Win from Asking for Help


One of my clients was able to save thousands of dollars—just by asking one question during her mediation. She wanted to keep the matrimonial home but didn’t think she could afford the mortgage on her own.


We sat down, ran the numbers, and she was able to negotiate a purchase price that helped her qualify for a better mortgage rate. That small adjustment put thousands of dollars back into her pocket—money she could now use toward her other goals.





7 Financial Things to Consider Before or During Mediation (in Canada)


1. Health & Dental Coverage

If you were on your spouse’s benefits, that coverage will likely end. This matters for both you and your children.


👉 Ask:

  • Will the kids stay on your spouse’s plan?

  • Can your ex keep you on benefits temporarily during the transition?

  • What will private insurance cost, if you need it?


2. Pensions & Workplace Benefits

Pensions (Defined Benefit or Defined Contribution Plans) are considered family property in Canada—even if they won’t pay out for years. They can be a valuable part of your retirement plan.


👉 Ask:

  • Can you get a pension valuation?

  • What’s the fairest way to divide or equalize these benefits?


3. Taxes: Not All Assets Are Equal

In Canada, different assets come with different tax consequences. For example, RRSPs are taxed when withdrawn, but TFSAs are not—and their growth is also tax-free.


A $20,000 RRSP is not equal to a $20,000 TFSA.


Also important: alimony is taxable to the receiver and deductible for the payer. Child support is not taxable for anyone.


👉 Ask:

  • What are the tax consequences of this settlement?

  • Should you speak to a tax or financial expert before signing?


4. Getting a Fair Value for the House

If one person is keeping the home, it needs to be fairly valued. And even if you can keep it—ask if you should, from a financial, physical, and emotional perspective.

👉 Ask:

  • Can you get an independent appraisal (or two, and average them)?

  • Can you afford the mortgage, taxes, utilities, maintenance—and emotional toll?


5. Canada Child Benefit (CCB)

The CCB is a significant monthly support for many families, but how it’s shared depends on your custody agreement and income.


👉 Ask:

  • Who will claim the kids for tax and benefit purposes?

  • Will we share the CCB or alternate years?


6. Canada Pension Plan (CPP) Credit Splitting

If you were married or common-law for at least one year, you may be entitled to a portion of your spouse’s CPP contributions. If you weren’t working during the relationship, this could benefit your retirement.


👉 Ask:

  • Can you apply for CPP credit splitting?

  • What impact will this have on your retirement income?


7. RRSP Transfers Without the Tax Hit

RRSPs can be transferred between spouses tax-free during a divorce—but only with the right legal documentation.


👉 Ask:

  • Can you use an RRSP transfer instead of cash or selling other assets?




Amanda

You Have Support


Divorce is hard. But with the right questions and support, you can make decisions that set you up for success. You don’t need to be a financial expert—but you do need to know where you stand. That includes what you own, what you owe, what you earn, and what you spend.


At Red PocketBook, our mission is to make you financially healthy and confident—so you can focus on what truly matters to you. We’re here to walk beside you every step of the way. We’re part of your village.


Ask your questions now to get ahead on your financial journey.


Book a free discovery call with Amanda today:




Comments

bottom of page