Heather and Tony have recently divorced. During their separation negotiations, they incorporated a plan into their Separation Agreement to help them determine how much each parent would be responsible for contributing to special and extraordinary expenses for their children. These expenses could include:
- • Sporting or Club fees (hockey, dance, etc.)
- • Uninsured Medical Expenses, Counseling, Prescription Drugs
- • School related fees (tuition, school supplies or school trips
- • Religious Costs (ceremonies, trips or supplies)
- • Clothing (special occasions; prom dress, new suit)
- • Hobbies or Lessons (piano, swimming, etc.)
In their Agreement, they decided that their payments would be based on the yearly income of each parent and would be shared accordingly based on that percentage. Each year the percentage could change based on their previous years income and they both agreed that their children should contribute to some of their costs.
The agreement takes the pressure away from their children when the time comes to ask either parent to pay for an unexpected or expected expense.
Heather and Tony’s children have the right to reasonable financial support during their childhood and throughout their college/university years without the fear of guilt from either parent.
The successful development of Heather and Tony’s Agreement allows their children not to be caught in the middle of their parents divorce and feel comfortable approaching their parents regarding their financial needs.
With 4 in 10 marriages in Canada ending in divorce determining a financial plan is an issue that affects a large number of Canadian families. It is important when going through the divorce process, parents work together for the emotional well-being of their children.
Working together helps to reduce anxiety levels, improve attitudes in their children, enhances school performance, and nurtures friendships; allowing parents to move forward with their own lives.
For more information on how to develop a financial plan, like Heather and Tony’s, for your own family when going through a divorce, check out the Family Support Expo!
Have you struggled to properly budget for your children’s expenses? What has helped you? Share your thoughts and questions in the comment section below. And don’t forget to tweet and like this post if you found it useful.