Rising Divorce Costs Are Keeping Canadians in Unhappy Marriages, Survey Finds

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For many Canadians who have ended a marriage, the hardest moment was not deciding that the relationship was over. It was working out whether life afterward could still be afforded. New figures from BMO show that 37% of divorced or separated respondents remained in a marriage longer than they wanted because of the financial cost of leaving. More than half also said today’s cost of living made the financial fallout harder than expected.

That tension has turned separation into a calculation involving legal bills, rent or mortgage payments, child-related expenses, retirement savings and the cost of running two homes instead of one. The result is a painful contradiction: a relationship may be emotionally finished while the household remains financially bound together. For couples already under strain, the price of starting over can become one more reason to postpone it.

The Decision to Leave Is Becoming a Financial Calculation

The BMO figures show how strongly money can shape the timing of a breakup. Among Canadians who were divorced or separated, 37% said the cost of divorce or legal separation kept them in the marriage longer than they wanted. The same proportion said broader economic uncertainty—including inflation and job stability—affected when they finally separated. Those numbers do not mean that 37% of all married Canadians are currently trapped in unhappy relationships. They reflect the experiences of people who had already gone through a divorce or separation, but they still reveal how financial pressure can delay a deeply personal decision.

That delay can look ordinary from the outside. A couple may continue sharing meals, mortgage payments and school drop-offs even after privately accepting that the relationship has ended. One partner may be ready to leave but unable to qualify for another rental; the other may fear carrying the family home alone. In that setting, staying is not necessarily reconciliation. It can be a temporary financial strategy, renewed month by month because every available exit appears unaffordable.

Why So Many Separations Are Postponed

More than one-quarter of divorced or separated respondents said they delayed the process. Among those who postponed it, 32% pointed to the financial cost of divorce or legal separation, 27% worried about paying for separate households, and 18% cited uncertainty tied to inflation or job security. The findings suggest that the expense is not confined to lawyers or court filings. It begins with a broader question: can two people maintain two viable lives on the same combined income that previously supported one household?

The pressure becomes especially clear when children, debt or unstable employment are involved. A parent considering separation may be calculating an apartment deposit, moving costs, childcare, transportation and the possibility of support payments at the same time. Even a relatively cooperative split can require cash before either person has had time to rebuild savings. BMO found that 51% of divorced or separated respondents said the rising cost of living made the financial impact harder than they expected. In practical terms, the decision may be delayed not because the relationship improves, but because the financial landing still looks too dangerous.

Legal Fees Can Widen the Gap Between Amicable and Contested

The legal price of divorce varies dramatically depending on conflict and complexity. Canadian Lawyer’s 2021 legal-fees survey reported typical ranges of roughly $1,000 to $2,000 for an uncontested divorce and $7,500 to $25,000 for a contested one. A trial lasting up to five days was reported in a much wider range, from about $8,500 to $55,000. These are not guaranteed prices, and fees differ by province, lawyer and case, but the contrast explains why unresolved disputes can quickly turn a difficult transition into a major financial event.

Canada’s Department of Justice also warns that asking a court to decide parenting, support or property issues will probably make the process longer, more expensive and more stressful. For a separating couple, every disagreement can carry a price: document preparation, financial disclosure, expert reports, negotiations and court appearances. An uncontested filing may be manageable for some households, while a prolonged dispute can consume emergency savings or force new borrowing. The fear of that escalation can influence behaviour before a case is ever filed, encouraging some couples to remain under one roof while they try to negotiate a path they can afford.

Two Homes Now Cost Far More Than One

The most persistent expense often arrives after the paperwork: maintaining two households. National rent prices were 30.8% higher in April 2026 than five years earlier, according to Statistics Canada, even though the annual pace of rent growth had slowed. Overall consumer prices were also up 2.8% from a year earlier in April, while BMO Economics estimated that the general price level was about 20% higher than five years before. That cumulative increase matters more than a single month’s inflation reading because newly separated households must buy housing, groceries, utilities and transportation at today’s elevated prices.

Consider a couple who once divided one rent payment, one internet bill and one set of household supplies. After separating, many of those costs are duplicated rather than divided. Each person may need furniture, tenant insurance, utility deposits and enough space for children to stay overnight. Selling a home can create another problem if neither partner can afford to buy again in the same community. A relationship may therefore be over emotionally while both people remain financially dependent on the efficiencies of living together. The so-called cost of divorce is often really the cost of losing a shared household.

Money Pressure Often Starts Before the Breakup

Financial strain is not only an obstacle to separation; it is often part of the relationship itself. BMO found that 32% of coupled respondents viewed spending as a source of conflict, 36% felt their partner spent too much, and 17% said major purchases had led to arguments. Nearly half of people who had married described marriage as a bigger financial step than an emotional one, while 63% said it required more ongoing financial planning than expected. Those figures show how quickly everyday choices—credit-card balances, vacations, renovations or savings goals—can become symbols of trust and fairness.

The pressure is especially visible among younger adults. BMO reported that 56% of millennials and 54% of Generation Z respondents who had married saw marriage as more of a financial than emotional step. One-third of Canadians also said they felt pressure to move in with a partner to save money. Separate findings from H&R Block found that 80% believed life was more affordable as a couple, while 73% believed many people remain together for financial reasons. Shared living can create stability, but it can also make emotional independence harder when the household budget depends on two incomes.

Financial Dependence Can Limit Real Choice

More than half of coupled respondents in the BMO findings said they were financially dependent on their partner or spouse, and 41% said the other person understood financial planning better. Dependence is not automatically unhealthy; couples routinely divide responsibilities according to income, time and skill. The risk appears when one partner has limited access to accounts, little credit history, no emergency fund or only a partial understanding of household debts and assets. At that point, leaving may require more than emotional certainty. It may require rebuilding basic financial independence.

A common imbalance develops gradually. One spouse manages investments, taxes and the mortgage, while the other handles childcare or daily household spending. Years later, the less financially involved partner may know that the relationship should end but not know what income is available, how much debt exists or what retirement savings have accumulated. Divorce can also involve the family home, pensions, RRSPs, investments, bank accounts and other property, with provincial or territorial rules governing division. Once a separation lasts more than 90 days, the Canada Revenue Agency may also recalculate benefits and credits using the changed family income. The financial transition is therefore both personal and administrative.

The Long-Term Hit Is Not Shared Equally

The immediate costs of separation can obscure the longer financial tail, particularly for older adults. Statistics Canada has found that divorce reduces living standards in retirement more than the death of a spouse. In one cross-cohort analysis, divorced women in the 1996 cohort received about 70% of their earlier adjusted family income between ages 70 and 80, compared with 87% among women who remained married. Divorced men also experienced negative effects, but their later-life family incomes were generally higher than women’s. The results reflect historical cohorts and should not be treated as a forecast for every modern couple, yet the gender gap remains important.

The risk is often greatest when one partner reduced paid work for caregiving or relied heavily on a spouse’s pension and investment income. A breakup close to retirement leaves less time to increase earnings, rebuild savings or recover from the cost of establishing a new household. Even when property is divided according to law, two smaller retirement plans may not support the lifestyle once funded by one combined pool. For an older person considering divorce, fear of financial decline may be as powerful as the legal bill itself—and may explain why some remain in an unsatisfying marriage long after emotional ties have weakened.

Lower-Conflict Options Can Reduce—but Not Remove—the Cost

Canadian family law does not require every separation to become a courtroom battle. The federal government points to family justice services, including mediation, as ways to resolve parenting, support and property issues outside court. Legal Aid Ontario says mediation commonly costs less than family litigation, estimating an average below $5,000 compared with a court process that may range from $5,000 to $25,000. Mediation is not suitable in every situation, particularly where safety, coercion or an inability to negotiate fairly is a concern, but cooperative processes can reduce both financial and emotional damage when they are appropriate.

The BMO results should also be read with care. Ipsos collected responses from 2,503 Canadian adults between December 29, 2025, and January 27, 2026, using quotas and weighting to reflect census parameters; BMO reported a credibility interval of plus or minus 2.4 percentage points. The findings capture reported experiences and attitudes, not proof that higher prices directly caused every delayed separation. Still, they point to a real policy and household problem: the freedom to leave a marriage is partly shaped by access to housing, legal guidance, savings and income. Emotional choice is difficult to exercise when the financial exit remains out of reach.

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