Alison also signed up for monthly payments for such expenses as insurance, to eliminate large year-end bills. "It's easier to come up with onetwelfth every month, rather than $800 at once," Alison says, adding that she is using her line of credit, which carries seven per cent interest, to pay off her 28 per cent interest credit card. much materially. She has some savings, though not the 10 per cent of her gross income recommended by financial experts, but, most important, she has peace of mind. "It's scary to face your finances alone," she observes. "But when you get them nailed down, it's really, really satisfying."
6. Establish your financial identity
As organized as she was about other things, the one post-separation issue Karen didn't anticipate was fighting to pay bills. The utilities had originally been in her husband's name, so she faced a bureaucratic nightmare when getting the hydro, phone and water accounts switched to hers. "The guy from the phone company actually made me cry," she recalls. "In the end, my husband had to call and agree to the changes. It was horribly humbling." Fortunately, Karen had one thing working in her favour – her own financial identity.
"I've seen women come out of 20-year marriages with no credit rating because they've shared their husband's credit cards," says Karen. Sachs urges women to also have a personal bank account. "From Revenue Canada's perspective," she says, "you're not separated if you have the same information as your spouse," such as home address and bank accounts, which will affect your family benefits and income tax.
Page 3 of 4
