Divorce is a dreadful event emotionally for everyone involved, but it also has a huge financial impact on Australians due to our family law arrangements.
When it comes to splitting assets, everything can be considered part of the matrimonial asset pool: the home, investments, savings, and even your superannuation. The bottom line is that two households must survive on the same dollars that formerly supported one.
Financial planning for divorce
Rebuilding your life financially and emotionally after a divorce or relationship breakdown is a difficult task. In addition to the emotional impact, a divorce or separation also has stressful financial ramifications.
To start rebuilding your life you need to start with a budget. This will ensure that you have an accurate idea about your available cashflow and your new costs of living.
How can a Financial Adviser help?
Consulting with a financial planner can help:
Assess your income and expenses and developing a new budget to meet your goals
you identify your financial goals
Formulate a financial plan to secure your financial future
Review your estate planning considerations. Will you need a new Will and Powers of Attorney?
Review your insurance cover to ensure that it remains appropriate.
The financial impact of a divorce can set you back years. This in particularly evident where divorce occurs later in your working life as you have less time to rebuild your finances before retirement. By seeking financial advice you can make the most of a difficult situation and implement a plan to get your life back on track.
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