Debt and divorce

Hey you, take off those rose-coloured glasses.

Yes, today is the Day of Love. The day you'll pay four times more for long-stemmed roses and the day you're apt to burn up the plastic to impress that special someone.

You may even pop the question, and blow the budget on a diamond ring.

But here's a reality check: A leading cause of divorce is fighting over money. And divorce can cost big-time.

My bet is that in many households across the country tonight, the mood won't be so romantic if the topic of money crops up. That's because many Canadians are stressed out over debt, owing a record $1.1 trillion or $80,000 a household, which equates to 131% of household income.

And many are in deeper. John Dale, executive vice president of MacKenzie Investments points out, "we don't deny ourselves much these days, except for a dose of reality when it comes to our financial security."

MacKenzie's latest Burn Rate, which pegs how fast you can spend your disposable income, shows 56% of Canadians under age 50 have troubling overspending tendencies and 53% used credit cards to buy something when they knew they didn't have enough money in the bank to cover it.

"Going into debt to pay for candy, flowers and meals at the finest restaurants seems worth it," says Gail Cunningham, spokesman for the National Foundation for Credit Counselling (NFCC). But, "as things progress, so does the price tag, culminating with an engagement ring, elaborate wedding ceremony, and a honeymoon to an exotic island. Life is good, at least until the bills start arriving."

The bottom line is opposites attract: Where one saves, one spends. And each bring their financial baggage into a relationship, whether it's a poor credit rating, maxed out credit cards or they're so frugal it drives you nuts.

"The time to address money differences is up front," says Cunningham.

---

GREAT ADVICE:

- Sit down and talk money calmly, not in a heated exchange.

-Bring to the table financial documents, like credit reports, pay stubs, bank statements, insurance policies and investments.

- Make a plan to deal with skeletons that fall out of the financial closet.

- Make a joint budget that includes savings and decide who will be responsible for paying monthly bills.

-Set up short-term and long-term goals, like buying a home and retirement.

-Discuss tough topics, like lending money to family and helping aging parents.

- Make a will.