Going through a divorce or separation is undoubtedly a difficult time emotionally, but it can also be a financially precarious time. This can be particularly true for women, especially those who had been in long-term, more traditional relationships where the husband managed the family finances. An imbalance in financial literacy can place the less financially savvy partner at a serious disadvantage and threaten their financial security going forward. However, when going through a divorce or separation, seeking out expert financial advice from financial advisors is not always something considered to be as important as seeking out the services of a family law solicitor.
But apart from obtaining solid legal advice from a solicitor, obtaining good financial advice is a really smart move to help a separating person make the best financial decisions for their future. With this in mind, financial advisors such as Cardena Private Wealth have been calling for people to consider the importance of obtaining financial guidance early on when going through divorce or separation. The group have now released a useful resource entitled “Dealing with the financial challenges upon divorce or separation” which you may find useful to read.
What are some of these financial challenges and how can financial advisors help? Apart from providing financial advice in relation to a property settlement and making sure you get a fair share of the asset pool, financial advisors can also help with immediate financial survival needs. This includes assistance and advice for planning how to make the best of your new financial situation, from preparing a new budget to the steps you should take to protect your interests right now. For example, it’s recommended you do a financial stocktake, close off your joint bank accounts, and cancel loan redraw facilities to avoid incurring more debt.
Once you’ve reached a financial settlement and received your share of the asset pool, what’s next? Seeking advice from a financial advisor will enable you to consider what the most appropriate steps are to take after settlement. With a longer term outlook of securing your financial future, financial advisors will also be able to assist with investment advice, wealth preservation strategies, retirement, superannuation and estate planning/wills.
There’s much to consider from a financial standpoint when going through divorce or separation, from advice on how to adjust to a change in income or lifestyle, to how to negotiate a settlement structured for the best long term outlook. It really makes sense to obtain the best advice early on to ensure you put yourself in the best financial position going forward.
Sources: Money Management, IFA
You can download the Cardena document here.
You may also find the MLC Divorce Finance Checklist useful.
And check out the free Penda app, developed by Women’s Legal Service Queensland, which is a great tool to help improve women’s financial security when going through divorce or separation.
Do you need assistance with a property settlement or other divorce matter? Please contact Canberra family lawyer Cristina Huesch or one of our other experienced solicitors here at Alliance Legal Services on (02) 6223 2400.
Please note our blogs are not legal advice. For information on how to obtain the correct legal advice, please contact Alliance Legal Services.
