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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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  #11  
Old 02-06-2019, 11:33 PM
tilt tilt is offline
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If you have no assets beyond your pension then you will have to get a loan. Since you say you have no assets at all it sounds like you don’t even have a car you can sell/use as security. I believe you can get a loan against your pension, but it won’t be a very good rate. You would probably benefit from talking to a financial advisor and seeing if paying out from the pension or getting a loan is more feasible. You could also see about taking out the $30,000 from “your half” of the RESP and paying more at the time your children are going to school (she pays out her portion of education expenses from the remaining RESP, you effectively pay out more from your salary/pension at the time).

I’m a little confused though, if you are walking away from this marriage with no assets, a CS (and probably SS) obligation, and children still to complete post-secondary education - it doesn’t sound like you CAN afford to retire in three years (exactly how late did you have these kids that you are retirement age, AND they are yong enough for RESPs?)
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  #12  
Old 02-07-2019, 01:00 PM
menchia menchia is offline
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Quote:
Originally Posted by tilt View Post
If you have no assets beyond your pension then you will have to get a loan. Since you say you have no assets at all it sounds like you don’t even have a car you can sell/use as security. I believe you can get a loan against your pension, but it won’t be a very good rate. You would probably benefit from talking to a financial advisor and seeing if paying out from the pension or getting a loan is more feasible. You could also see about taking out the $30,000 from “your half” of the RESP and paying more at the time your children are going to school (she pays out her portion of education expenses from the remaining RESP, you effectively pay out more from your salary/pension at the time).

I’m a little confused though, if you are walking away from this marriage with no assets, a CS (and probably SS) obligation, and children still to complete post-secondary education - it doesn’t sound like you CAN afford to retire in three years (exactly how late did you have these kids that you are retirement age, AND they are yong enough for RESPs?)
I'll be seeking the advice of a certified divorce financial advisor. In my case, it's not that I don't have the ability to pay off what I owe, it's just I cannot pay the full amount at once. My salary is high enough to allow me to pay a good sum of what I owe over a short period of time (~3 years), I will have to do some consulting jobs after retirement to pay off the balance. All that may take between 4 to 5 years to payoff the debt. Therefore, I was wondering if that's reasonable time frame to suggest to my STBX.
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  #13  
Old 02-08-2019, 05:48 AM
tilt tilt is offline
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Even though you are amicable it seems unfair to the ex to expect her to wait for her money because you want to retire. When you are married you work as a team and one partner may decide to “take one for the team” with the attitude that what is good for one is good for the team. But you aren’t a team anymore; asking her to delay ownership of her money (and the lost opportunity costs that can’t be captured by 3% interest) isn’t really fair. Once you get old like us weird health things happen and the agreed five year term may get pushed back to seven or eight years as you prioritize your health over her payment. A loan sounds the best option to give her the lump sum, cut the financial ties ASAP so you can have a healthy co-parenting relationship without resentment. YMMV, if she is down for it, then go for it - and treat her fairly and well to preserve that great post-marriage relationship.
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  #14  
Old 02-13-2019, 04:11 PM
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Janus Janus is offline
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Originally Posted by tilt View Post
A loan sounds the best option
I agree, and I'm shocked that she would agree to anything other than an immediate payment for equalization. She must not have a lawyer.

Warning: If she doesn't have a lawyer then your agreement can always be revisited and overturned at a later date.
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  #15  
Old 02-13-2019, 08:24 PM
paris paris is offline
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Take the money out of your pension and pay her off. You can spend the next few years putting what you propose to be giving her back into your pension.
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  #16  
Old 02-13-2019, 11:08 PM
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arabian arabian is offline
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Quote:
Originally Posted by Janus View Post
I agree, and I'm shocked that she would agree to anything other than an immediate payment for equalization. She must not have a lawyer.

Warning: If she doesn't have a lawyer then your agreement can always be revisited and overturned at a later date.



So very true.

I agree with Janus and Paris.
Pay her out asap.
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  #17  
Old 02-14-2019, 09:25 AM
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Quote:
Originally Posted by paris View Post
Take the money out of your pension and pay her off. You can spend the next few years putting what you propose to be giving her back into your pension.

I still think he should pay her off.


I just wanted to point out though that many pension plans will not in fact allow you to reimburse the money that was taken out for a family law division.
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  #18  
Old 02-14-2019, 10:07 AM
rockscan rockscan is offline
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Default Period allowed for Equalization payment

EDIT: Re-read the entire thread.

Talking to a financial advisor is your best bet. If you have a large pension, you could also see about deferring retirement or even deferring using it and still working for a few years.

Last edited by rockscan; 02-14-2019 at 10:11 AM.
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