How to be prepared for when 'I do' becomes 'I don't'
Analaura Luna
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Marriage can be bliss … but for many Australians it can feel more like a battleground! And when it comes to divorce, financial difficulties are all too common. With the right strategies, you can protect your financial future when going through a divorce – but do you know how?
‘When people divorce it can be a tragedy. At the same time, if some people stay together it can be even worse.’
- Monica Bellucci
It’s a sad fact that a marriage that starts out as the perfect union can sometimes deteriorate into a battle of epic proportions where the only sensible thing to do is end it. Though to be blunt about it, ‘often’ could be a more accurate term than ‘sometimes’ – statistics show the divorce rate in Australia is apparently increasing again. In 2009, 49,448 divorces were granted – up 2,239 from the previous year – and the first increase in the number of divorces granted annually in almost a decade.
Considering the pressure so many families have been under lately, this isn’t really surprising. Traditionally, the early months of the year are a ‘peak’ time for divorce. This year, YFYM noticed a 21 per cent increase in sales of Real Money Advice for Divorce in January and February alone, and feedback we’ve received from members indicates that, in a lot of cases, relationships were already rocky and the stress of dealing with money problems in 2010 pushed them over the edge.
Divorce isn’t always avoidable, but the fact that your marriage might end doesn’t mean that your life or your future financial security needs to end as well. If you’re worried that you might be facing a separation soon – or even if you want to be prepared just in case your ‘I do’ turns into an ‘I don’t’ – there are five key things you can do to limit the financial damage that the early stages of separation can bring and prepare yourself to create a great, and independent, financial future.
Don’t live in a financial dictatorship
It’s common for one partner to take control of a couple’s finances, but it’s critical that you aren’t kept in the dark about your financial situation. Make sure you know what’s happening with your shared finances as ultimately, you’re also responsible for them. It’s also worth having your own personal bank accounts so that you’ll always have some financial independence if the worst does happen to your relationship.
Have an ‘emergency’ file
Make a checklist of all marital financial assets and resources, get information about all important financial documents, such as bank statements, mortgage statements, insurance policies, title deeds, super funds and share certificates, and get copies of birth, marriage and citizenship certificates. Store them in one easy-to-access folder and remember to update the information regularly.
Be well advised
Many Aussies are marrying later in life, which means they put more assets at risk when they divorce and have less time to recover financially – 54 per cent of respondents in the YFYM Divorce in Australia Survey felt they were hard done by in their property settlement, but only 20 per cent sought financial advice during the divorce process. If you’re considering separation or divorce, make sure you get independent legal and financial advice from professionals who will work to create the best outcome for you.
Be willing to act fast
If divorce is on the cards you need to act fast to ensure that all appropriate people and organisations know about your separation. The things you’ll need to consider changing include: your bank accounts, your personal insurance beneficiary, insurance certificates for vehicles and property, ownership on vehicle registration, your Will, POA, EPOA, medical guardianship and superannuation beneficiaries.
Try to make peace
This is a tough one, we know – you and your partner probably wouldn’t be considering divorce if you were finding it easy to get along. But the more amicable you can be, the better the outcome for both of you. Try spending some time apart before committing to the divorce – divorce in Australia requires you to be separated for a year before you can legally end your marriage anyway – to see if it helps you work things out, and if divorce does turn out to be the best option for you, try to work out any child custody and property settlements out of court. Heading to court will not only cost a fortune, it can leave you with inflexible results that nobody’s happy with.
While being in a rocky marriage can feel like you’re living in the middle of a battlefield, there are things you need to focus on right now so you can secure your future for tomorrow, when the war is over.
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If you liked this article you might
also be interested in these other articles about divorce and separation:
How to get great divorce advice without breaking the bank
Simple tips for surviving divorce
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Tags: divorce in australia, child custody, real money advice for divorce, money problems, money management
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