Save
How to prevent big losses in a relationship breakdown
For married couples, statistically speaking, the chances of getting a divorce are significant. So why do so many Australians enter marriages without a protection plan for their finances, and how can they protect themselves?
How to prevent big losses in a relationship breakdown
For married couples, statistically speaking, the chances of getting a divorce are significant. So why do so many Australians enter marriages without a protection plan for their finances, and how can they protect themselves?
Pekada’s co-founder and principal adviser, Pete Pennicott, said: “Navigating the sticky situation that divorce often becomes is no small feat, but there are ways to make the transition simpler and make it an opportunity for a fresh start.”
Pekada said the first effect of a divorce financially is the division of assets. Looking from the outside, splitting assets 50/50 doesn’t seem that difficult.
“Not all assets have the same benefits, accessibility and tax consequences, so something that looks like a fair deal in the moment could end up costing you thousands in the future,” said Mr Pennicott.
The second financial burden is the diluted retirement savings and super, particularly if one spouse took time off from work to raise the kids.
“Ultimately, who gets (or wants) other assets, including the family home, will dictate how superannuation benefits are divided, so it’s important to think through which split of assets suits you best, in the long term,” said Mr Pennicott
The third strain financially is having one income to run two household budgets.
“Don’t be fooled into thinking that you can simply divide your previous expenses in half, as there is a lot of duplication in the new sets of living expenses – best bet is to sit down and do a budget to ensure you don’t overextend yourself,” said Mr Pennicott.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author
About the author
How to budget
‘Tried and tested’: Why age-old money advice still rings true
Day-to-day life is in no way normal this year, but leaning on lessons from the past is a great way to better equip ourselves for months more of uncertainty, according to a financial planner. ...Read more
How to budget
5 ways to improve your finances this financial year
Australia may be firmly planted within a recession, but with the advent of a new financial year, there’s still plenty to be gained from a “new year, new me” approach when it comes to money. ...Read more
How to budget
Here’s how Gen Z is changing the finance game
Generation Zers – those born between 1995 and 2012 – are leading the way when it comes to money responsibility and a more flexible view of finance, according to new research. ...Read more
How to budget
How to budget on JobKeeper and JobSeeker payments
With more than 3 million Australians likely to be on either JobSeeker or JobKeeper payments during the COVID-19 pandemic, many are wondering how they can survive off government assistance. ...Read more
How to budget
How to safeguard your finances through the pandemic
Australians are ill-prepared for any major setback financially, with one in five Aussies needing credit to get through unforeseen financial expenses, new research has found. ...Read more
How to budget
Why cash flow is king during COVID-19
Cash flow has never been so important, according to a chartered accountant. ...Read more
How to budget
4 financial changes to prepare for in 2020
From neobanks to rate changes and insurance hikes – a number of changes are set to take place in the coming year that could have both positive and negative ramifications for the financial position o...Read more
How to budget
Setting achievable financial goals in 2020
The beginning of each year is the perfect time to recalibrate and find your financial feet. Whether it’s an all-encompassing dream of living by the beach, a resolution to save 5 percent of your sal...Read more
How to budget
‘Tried and tested’: Why age-old money advice still rings true
Day-to-day life is in no way normal this year, but leaning on lessons from the past is a great way to better equip ourselves for months more of uncertainty, according to a financial planner. ...Read more
How to budget
5 ways to improve your finances this financial year
Australia may be firmly planted within a recession, but with the advent of a new financial year, there’s still plenty to be gained from a “new year, new me” approach when it comes to money. ...Read more
How to budget
Here’s how Gen Z is changing the finance game
Generation Zers – those born between 1995 and 2012 – are leading the way when it comes to money responsibility and a more flexible view of finance, according to new research. ...Read more
How to budget
How to budget on JobKeeper and JobSeeker payments
With more than 3 million Australians likely to be on either JobSeeker or JobKeeper payments during the COVID-19 pandemic, many are wondering how they can survive off government assistance. ...Read more
How to budget
How to safeguard your finances through the pandemic
Australians are ill-prepared for any major setback financially, with one in five Aussies needing credit to get through unforeseen financial expenses, new research has found. ...Read more
How to budget
Why cash flow is king during COVID-19
Cash flow has never been so important, according to a chartered accountant. ...Read more
How to budget
4 financial changes to prepare for in 2020
From neobanks to rate changes and insurance hikes – a number of changes are set to take place in the coming year that could have both positive and negative ramifications for the financial position o...Read more
How to budget
Setting achievable financial goals in 2020
The beginning of each year is the perfect time to recalibrate and find your financial feet. Whether it’s an all-encompassing dream of living by the beach, a resolution to save 5 percent of your sal...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
