What assets should you take in divorce?
It’s an often nasty subject not talked about much. The stats out there are that ‘one in three’ relationships end up breaking up.
Often people are unprepared for this and in an emotional state so thinking clearly is out of the question.
Women tend to like to keep the family home so they can keep their children and family together. What if there is a big debt on this and you couldn’t afford the mortgage repayments on your single income? Is this still appropriate to take?
What about super? Well this is often included in settlements but you have to remember it stays in the super system until you meet a condition of release, e.g. 60 and retired. So this won’t help to keep your family living expenses in the short term but will help your financial security in the long term.
I think often females tend to keep more of the assets for the here and now rather than assets for their long term security. I know it’s going be hard living without some of the things you were able to enjoy when a couple but I personally would prefer that than having to work till I was 80 to ensure I had enough money to live on. Don’t always put everyone else first, your future matters!
What if a business is involved? How is this valued? The earning potential in the future or now? Usually it has to be valued on the here and now. If there are children involved and maintenance payable then the future income potential is taken into account on those calculations.
Is future income and security of ability to fund your life more important than the big ticket items you previously owned?
Do you just sell everything and start again? That seems like a lot of work but there are certainly benefits in that the memories are less and a fresh start can begin. Financially it gives you the most flexibility. Do you know how things will be on your own, how much it will cost you to live or where you will earn your income?
Personally I would rather have the comfort of a regular income than keep the assets I can’t afford and be under pressure. What is more important time with your family or living in your existing home?
Of course everyone is different and their needs might be quite specific.
If you wish to obtain help with your financial situation upon divorce or have any questions regarding this please give the staff at Ritchie Advice a call we would be more than happy to help.
This advice may not be suitable to you because it contains general advice which does not take into consideration any of your personal circumstances. All strategies and information provided in this article is general advice only.
Ritchie Advice Pty Ltd ABN 12 150 128 448, is a Corporate Authorised Representative 408050 of Dover Financial Advisers Pty Ltd, Australian Financial Services Licensee No. 307248.