How To Stay Financially Invested In Your Children Following Divorce
Guest Blog By Jackie Edwards. Jackie specializes in unemployment services and contributes regularly to online forums in her industry.
Approximately 1.2 million divorced or separated Canadians are parents to children 18 years or younger according to a 2011 General Social Survey on Families. Divorce is almost always stressful for children and can severely strain parent-child relationships. The combination of increasing conflict between parents and the subsequent financial strain contribute towards a very unhealthy environment for children.
While there are child support laws in place that look out for the best interest of the children in terms of a divorce, it’s also a moral obligation, as much as a legal one to remain invested in your children during such a trying period in their lives. Children require financial support from their parents and they have a legal right to it. It’s imperative to remain invested in your children’s lives, both financially and emotionally, to ensure that the divorce causes as little trauma and disruption as possible.
What Does The Law State?
Child support matters in Canada are governed by the Federal Government which means that child support law is identical in all the territories and provinces within Canada. The amount of child support due in each province is different though due to the fluctuating cost of living from area to area. The procedures in place in each province to obtain and collect child support also differs with each province having its own rules and regulations for enforcing payments.
How To Invest Financially In Children Post-Divorce
As you go through a divorce it becomes increasingly important for both parents to learn to adapt to a single income. It’s the responsibility of the parents to ensure the children are always looked after from a financial perspective. All their costs, including future expenses, such as dental work, insurance, cars, education and extracurricular activities must be compensated for. The children should in no way have to suffer in terms of financial security because of their parents divorce. Luckily for parents, there are numerous ways to invest in their children’s futures, even post-divorce.
Parents can set up trust funds for their children and incorporate any rules they deem fit, such as, the age at which a child can gain access to the trust, as well as, how frequently money will be allocated to the child. Trusts offer a lot of flexibility and are a sensible route where a large amount of money in concerned.
Educational Savings Accounts
Educational savings accounts can take on many forms, all with the same primary objective: to save money for your child’s education. Even after a divorce, parents can choose to contribute collectively towards an objective such as a child’s college fund. Post-secondary education is expensive and unless a student qualifies for a scholarship it can become a huge financial burden on the shoulders of a young individual.
As a parent, you should always have the best interest of your children at heart regardless of the relationship you have with your ex. Don’t wait for a court order to decide that investing in your child’s future is the right thing to do. If you are considering separation and need help understanding your financial rights and responsibilities, connect with us to set up an initial consultation.