divorce Archives - Financial Planning QLD

The financial effects of divorce after 50

With Australians marrying later in life and staying married for longer, the median age of divorce has risen over the last 20 years. It now stands at 45.3 years for males and 42.7 years for females. Couples who remain together into their 50s experience a lower divorce rate than younger age groups, but even so this age group still represents around 30% of all permanent splits. While divorce carries a heavy emotional burden at any age, the financial stakes for…

What to do if you aren’t a financially compatible couple?

According to the Australian Bureau of Statistics (ABS), in 2019 there were 113,815 marriages. Sadly in the same year there were 2,162 divorces, with financial issues cited as one of the major reasons for marriage breakdown. For couples deciding to move in together, the idea of buying a home and building a future can be very exciting, and prompt a lot of discussion. Conversations around shared finances and where one another stands on money – in particular, financial goals and…

Separation Planning: An adviser’s perspective

Few client meetings have been as challenging especially when helping someone with separation planning. After years of being happily married, Sarah and her husband decided to separate, and the story of her acrimonious divorce was certainly distressing. It started with a chance meeting, where in passing, Sarah mentioned the divorce. She assured me she’d had enough of advisers for a while and just wanted some time out. I insisted we meet as quickly as possible. Will The first step was…

Suddenly single later in life superannuation and retirement planning advice for Australians

Superannuation for the suddenly single

Found yourself separated and suddenly single later in life? Life often has different plans for us than we may have imagined and it could put pressure on our retirement plan and superannuation. Life after divorce (or separation) might bring with it a whole range of new things, including the need to rediscover yourself, dipping your toe back in the dating pool (hellooo Tinder) and revisiting your plans for the future, in particular, your financial plans. An essential financial aspect to…

Money and love: how to make it work

Are you and your partner financially compatible? A marriage between a saver and a spender comes with its problems, but nothing true love can’t overcome – right? Money and love, According to the Australian Institute of Family Studies (AIFS), household finances are among the main reasons couples argue. When Anna met Tony they planned a life together. They rented an apartment and Anna cashed in her $35,000 investment portfolio to fund their wedding and honeymoon. Savings-focused Anna was now keen…

Child maintenance trust father and daughter

What is a Child Maintenance Trust?

When relationships break down, child maintenance payments are often made from post-tax money. If this is a position you are facing, perhaps you might be interested in learning about a Child Maintenance Trust. According to the National Centre for Social and Economic Modelling (NATSEM), the cost of raising two children is estimated at $812,000. For those in the 45% tax bracket, every $25,000 in child support costs nearly $50,000. Just as alarmingly, children receiving payments of ‘unearned’ income, such as…

Financial advice for mother that is single

Financial advice if “suddenly single”

Shirley and Peter had been married nearly 37 years when Peter died in a car crash. At 62, Shirley was suddenly single and unprepared. Peter had managed their financial affairs, but with his death, Shirley was thrust into a world she knew little about. Moreover, she was shocked to discover the true extent of their household debt! Shirley knew their home was mortgaged, but had no idea the car was under finance. Nor had she known about Peter’s credit cards…