Your Mississauga divorce lawyer might recommend that you see a financial planner or credit counselor before working on distribution of property. Most property and debts incurred during a marriage belong to both parties, and your lawyer will need a clear picture of your financial standing in order to help you draft a fair agreement.
Only your Mississauga divorce lawyer can provide you with legal advice that pertains to your case, but a credit counselor can help you reduce debt without causing undue damage to your credit. If your lawyer suggests that you see a credit counselor, whether before, during or after your divorce, take it to heart; your lawyer has your best interests in mind and has probably made the suggestion based on his or her extensive experience with other people in situations like yours.
Why Your Mississauga Divorce Lawyer Might Suggest Credit Counselling
Paying down debt before you divorce will probably reduce the amount you owe after divorce, which can ease financial worries and prevent undue strain when you’re living on just one income. Your Mississauga divorce lawyer might recommend that you and your spouse see a credit counselor together or that you go alone.
Your Mississauga divorce lawyer might believe you could benefit from a credit counselling service because:
- they can help you identify your debts
- they may be able to work with your creditors on your behalf to establish payment plans or negotiate lower interest rates
- they often help people create budgets that work
If you’re having difficulty meeting your financial obligations—either those you’ve incurred with your spouse or those that are yours alone—your Mississauga divorce lawyer might want you to seek help from a qualified credit counselling service.
What the FCAC Says about Credit Counselling
There are a few red flags you should avoid when you’re looking for a credit counselling service, according to the Financial Consumer Agency of Canada. Companies who promise a “quick fix” for your credit, those who promise to negotiate settlements with your creditors, and those who lack specialized training might be more trouble than help.
You can check with Credit Counselling Canada, the Canadian Association of Credit Counselling Services or the Ontario Association of Credit Counselling Services to see if a company you’re considering has a solid reputation. You can also ask your Mississauga divorce lawyer for a referral to a reputable company; remember, your lawyer has worked with people in situations like yours before, and he or she might have first-hand experience with a good credit counselling agency.