Using RRSP to pay lawyer

[Mom 2 Two]

Any advice here? I know it makes your income look higher but it would only be for one year. I have a long battle ahead and don’t know how I will fund it as a single parent. But that is no reason to give up.



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[rockscan]

You could argue its a one time increase for the sake of paying your lawyer.

A personal line of credit would be a better idea as the interest is lower and there is no tax on it.

[Mom 2 Two]

Yes a line of credit much better. But you have to have the funds to pay it monthly I suppose. I guess I will go as long as I can on credit until I can’t anymore. I won’t let money get in the way of this. Just not easy as I assure everyone else knows.


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[rockscan]

Most lines of credit are about $50 per month payments. When you have a small interest rate, you only need to pay the interest each month.

Taking out the rrsps is a big mistake as you pay tax up front and then are penalized going forward.

Go and talk to someone at your bank. They will help walk you through it. Putting it on your credit card means 28% interest and you have a bigger monthly payment on that.

[plainNamedDad44]

Only use your RRSP as a last resort. Also, try to control your costs with your lawyer. If you drive, consider selling car and using public transit for a few years. This may not be an option for many depending on several factors.

[plainNamedDad44]

Also, perhaps the lawyer will let you structure payments. but as I said before, STAY ON TOP OF THEIR BILLING.

[Mom 2 Two]

Thanks for the suggestions. I am watching the billing. Have done some of my own copying and so on. Sadly she is a pay first and I will work for you kind of lawyer. ;-(. I have first court date in Monday. If she is good then I will keep her. If not I will look into Someone else. She is 24 years experience just in family law. So I am hoping I made a good choice. Can’t use public transportation I work too far from home but I guess I could downgrade vehicle at some point that may help. Looking into home line of credit for now. Thanks.


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[plainNamedDad44]

BTW, some other thoughts, how complicated is your matter, i.e. custody, access, property ?

Some stuff you can do yourself. Also involving the OCL may add some support and control to the process. i.e. keep things on track as OCL not financially going to juice you.

[Mom 2 Two]

I won’t know until Monday how far in depth this will go. I filed for motion to change in CS and S7’s. Ex’s response was for sole custody. And the usual that I deny/restrict access and unnecessarily enrolled the children in extracurricular and so on. Except the lawyer has told them his response doesn’t follow the rules. He needs to start a new application. But if he pursues the custody we will def be asking for OCL. Ex has asked for this and social worker assessment in his response as well as 10 pages of lies about the past 4 years. I’m already 6k in almost and haven’t even had court date yet. About 2 k was for letters and advice before I filed the motion. I did that in my own with lawyer checking it over.


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[rockscan]

You should encourage your lawyer to ask for costs whenever possible. Especially if he is making mistakes on his filings and delaying matters.

[Mom 2 Two]

I asked for costs on the original motions. I wonder if lawyer can get hand slapped for this. They purposely covered up that mother has sole custody on the SA they attached to the brief. And it’s very obvious. Lol. Half the page is just blanked out.


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