Divorce Settlement

[LuckyLucy]

I'm currently unemployed and pregnant. My husband filed for divorce as he doesn't want to be a father and I signed prenuptial agreement which will net me $200,000 US dollars . I would like advice on what to do with the money now that I'm about to be a single mom. I don't have any credit card debts and have a mortgage of 260,000 Canadian dollars. I was thinking of selling my one bedroom condo and getting a house in a cheaper area. Or should I pay off the one bedroom condo and try to make it work. I anticipate child support payments of about $10k per month when baby is born.

I currently live on $5000 month. But can reduce with proper budgeting. I have savings of $50,000. In retirement and TFSA. Please help.

[snafu]

Hi Lucy, welcome to SA. You are facing a slew of changes so it's a good idea to look at pros and cons of options and imagine the outcome of each 5 years in the future. It's time to gather resources and emotional support from family and friends. You don't want CRA taking away a big share of your settlement so you need to know the income tax ramifications of various deliveries. I hope you're in Vanc or somewhere where condos are holding their value.

What type of work/employment would you seek in the future? What region is most apt to seek your skill sets? Please understand, buying a house is fraught with issues of location, extra chores on top of the whole procedure of selling, buying, packing, moving, and resettling on top of your new role as a mom.

For the moment remember that babies are really tiny and don't take up a lot of space. They don't need much more than dozens and dozens of diapers, a lot of onsies plus a safe crib.