Every divorce is unique and that goes for the financial situation too. It is commonly believed that a fair divorce is one that results in a 50:50 financial split, because 50:50 is fair, right? The problem is that 50:50 doesn’t take into consideration crucial factors like disparity of income and future earning potential, different healthcare needs, different parenting roles, inheritances (including imminent inheritances) tax, and different types of assets. Within all divorce cases there are distinctive factors like these that need to guide how the money and assets should be divided. It is crucial to understand your own circumstance and what you need to achieve fairness in your own context.
Generally, the first thing on a persons to do list when going through a divorce, is to hire a lawyer. Although it is necessary in certain cases to have someone to fight for you, often legal advice is seen as enough of a basis for designing a “fair” split. Most lawyers and clients are unaware of the benefits and importance of also working alongside a divorce financial planner.
A divorce will have a tremendous impact and change the entire landscape of your financial situation. Understanding these changes and the implications that they have on your lifestyle is pertinent to feeling confident and secure financially.
Do you need to come to terms with the fact that you may need to buy and sell real estate, or are no longer a homeowner, or have less financial security than you are accustomed to? Or perhaps you are in charge of financial decisions for the first time? You may want to understand the real costs of raising your children, or the impact on your day-to-day business operations. You may feel that you are too young to worry about superannuation or retirement income, but you are never too young. Whatever your situation, ensuring that a financial planner is on your team is essential to check on your financial health and independence.
A financial planner can offer a specialised perspective ensuring that your financial interests are considered. They can help you navigate complex financial concerns such as budgeting for new living arrangements, understanding tax implications, and planning for retirement.
Empowering yourself with financial knowledge will not only help you to make informed decisions during the divorce process but also set you up for long-term financial stability and growth. Divorce is an opportunity to reassess and realign your financial goals according to your new circumstances. With the right support and resources, you can emerge from this challenging period with a solid financial foundation and a renewed sense of independence.