We are biased, but we think Perth is the best place to live in Australia. However, even Perth isn’t immune to marriages ending in divorce. While it is important to have the right divorce lawyer, it is also important to have the right financial planner.
According to a recent blog post by the Financial Planning Association of Australia (FPA), one out of three marriages will end in divorce, after an average period of 12.2 years. The average age of divorce for men is 44.1 years, while the average age for women is 41.5 years.*
The FPA notes that in the absence of a prenuptial agreement, known as a BFA or binding financial agreement, the distribution of assets is negotiated. The longer and more deeply lawyers are involved, the more of your assets end up being paid as legal fees. The FPA recommends an “amicable asset split agreement” whenever possible.*
The first step, according to the FPA, is to identify and value all assets, income, debts and expenses as individuals and as a couple. It is the nature of divorce cases for everything to be subject to negotiation. A good financial advisor can help you maximise your returns.*
House or Super?
Often, one partner takes the house and the other takes the superannuation fund. According to the FPA, your decision on house or super should be contingent on what you plan to do financially after the divorce is final. That, of course, means you actually have to have some idea of how you want your future to play out. Luckily, a good financial planner can help you out with that.*
Seek Professional Advice ASAP
According to the FPA, the sooner you get professional advice, the better. It is common for a client who hires a financial planner late in the process to wish they had hired one sooner.
To learn more or to hire a professional financial planner, call Approved Financial Planners today: 08 6462 0888.
*Financial Planning Association of Australia: “How to Manage the Financial Fallout from a Divorce or Separation.”