Coronavirus and Separation/Divorce – Important Tips

Coronavirus or COVID 19 is coming to us at an epic speed. Today the Globe and Mail estimated that up to 70% of Canadians can be diagnosed with this disease.

As a family lawyer, I feel that I need to provide some tips and spread the word about how to handle your separation, divorce or family law case during these uncertain times. My advice is going to be at times the opposite of what I usually advise my family law clients given the Coronavirus epidemic. People may disagree with me, and that is fine. Making informed decisions are all that matters at this juncture.

If you are planning on separation during COVID-19 epidemic

If you have not yet separated from your spouse but are planning on separating, DO NOT separate. Here are some reasons why: 

• Your home currently is one of the safest places to avoid Coronavirus. Do not leave it unless there is an imminent risk of physical harm or violence towards you or children.
• If you plan on leaving home and staying at hotels or shelters, you are exposing yourself and your children to contracting this virus which is going to compound problems on an already difficult situation.
• Even if you do leave home, there is no guarantee that you will be able to even book a hotel room given the likelihood of such places closing down until this epidemic has passed or has been resolved.
• You may have a difficult time finding a lawyer to represent your interests on an urgent basis. I am likely closing down my own firm and asking my lawyers to work from home.
• The courthouses may close and not allow hearings given Coronavirus. Courthouses space hundreds if not thousands of lawyers, judges and people. They will likely follow the social-distancing model and the fate of any court hearings from now on may be completely uncertain.

If you have already separated and want to divide assets during COVID-19

As much as you can, do not divide assets during the Coronavirus epidemic.

Some experts are predicting that the economic impact of Coronavirus is going to be epidemic, last for years and perhaps hit us harder than 9/11 did. Why? in simple terms:

• When people have to isolate themselves, they can’t work.
• When people can’t work, companies can’t make money.
• When companies don’t make money, investors lose money.
• When investors lose money, stock markets crash.
• When stock markets crash and there is no money, housing market will crash.

So what happens if you divide your assets during the Coronavirus time? 

1. You may have to sell your investments at a fraction of how much you purchased them. Because markets are crashing as we speak. Holding on to the investments and waiting for stability is one of the smartest things you can do. So if you have to divide investments, try and do it in specie, meaning do not cash them out and divide; simply roll them over to the other spouse such as doing an RRSP Role Over.
2. You may have to sell your house at a huge loss because people are panicking. Once people lose their money in stocks, they will look to sell their house to earn money.
3. There will be an over supply of housing and less demand to buy in uncertain times. This can drive down house value. Hold on to real estate as long as you can and until things stabilize. Do not panic because of separation.
4. You may lose a huge amount of money by cashing out RRSPs, because guess what, they too are likely currently worth less than how much they were worth 2 months ago. And they are going to continue to fall.
5. If you try to divide or sell your half share of the business to your spouse, you are putting both yourself and your spouse under tremendous risk and pressure. Right now is no time to make such decisions because the value of the business may have changed substantially given this virus. The life and viability of the business should be your #1 priority right now, not how much you can get out of it. So as much as you can, work with your spouse to take the business to the shore of safety instead of rocking it harder during the tsunami.

If you have separated and want child or spousal support during Novel Coronavirus

1. Instead of asking for a set amount of support for yourself or your child, remember that right now everyone’s jobs are likely at jeopardy. So please do not stress an already stressed spouse.
2. Instead try to see if given the current situation, you and your spouse can come up with a plan to jointly pay for family’s day to day expenses and whether you can jointly save up any excess funds for division in the future.
3. Do not be selfish at this juncture and do not treat the situation as black and white. We are in uncertain and scary times, so be adaptable and flexible. Try to come up with creative temporary solutions instead of digging heels for one certain type of outcome, which is unwise.

If you want custody of children and have Coronavirus

1. You should agree to completely suspend any physical parenting time with your children if you test positive for Coronavirus. No judge will allow such contact given the risks associated with the disease.
2. Ask for contact over the phone, Skype, Facetime, etc. Do not push for physical contact.
3. You should also agree to suspend any physical parenting time for at least 2 weeks after you have recovered from this virus.
4. You and the other parent should agree to resume parenting as previously after you have passed the above 2 steps.

If you have separated and want to travel with children during COVID-19

1. If you and the other parent disagree on whether you can travel with your children and you need to have a judge make such orders, your chances are winning are slim to none.
2. Several cases out of the Supreme Court now have disallowed all travel for children outside of the country because of COVID-19.
3. Stay at home with the children until the virus passes, and do not take risks. Our judges will not allow such risks to children for the time being.

Content written by Leena Yousefi,a family lawyer and the founder of YLaw Group, a Canadian family law firm.