Feeling exhausted and overwhelmed are natural and normal for anyone who is faced with separation or divorce. We understand, and we’re here to help you through this very challenging time. Unfortunately, financial matters need to be dealt with and we know from experience that those who receive poor advice when separating often find themselves feeling more distress than is necessary.
The fact is that with help and support, you can take control and ease the stress of separation or divorce.
It’s important not to underestimate the long-term financial implications of a relationship breakdown. How you manage the financial consequences of the end of your relationship can have an enormous impact for the rest of your life.
In 2017, more than 49,000 Australian couples divorced, an increase of 5% from 20161. The reasons for divorce vary widely but what every divorcee has in common is the need to recover, both emotionally and financially.
Following divorce or separation, it will be important for you to establish financial control as an independent individual whilst finding your new place in the world and learning to navigate a new way of life. Separations for many couples and families are usually complex and involve legal processes, and it can be easy to miss significant details that could result in drawn out processes and higher-than-necessary professional costs.
However, you can avoid this stress by seeking advice early. An experienced financial adviser can help you prepare for the changes ahead and put practical steps in place for a transition that protects your interests and is as smooth as possible.
There will be numerous considerations. Your lifestyle and financial goals and priorities are likely to change significantly post separation and financial strategies that have been in place may no longer be appropriate to your changed goals and priorities.
Further, changes to your financial status and circumstances as a result of separation or divorce may impact business structures or the financial arrangements that support them, such as partnerships or shareholder arrangements. The consequences could be significant.
Also, your transition out of your partnership should take into account solutions for your immediate financial needs and obligations as well as your longer-term needs for securing financial control as an individual.
At Stratus Financial Group, we use a collaborative approach to work together with your lawyer, mediator and accountant, with the aim of obtaining the best possible outcomes for each party. More specifically, we will help you to:
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- Develop a clear understanding of your new financial and lifestyle goals and how you will achieve them.
- Manage your cash flow, taking into account your personal income needs, which may include children’s expenses including their education.
- Review your insurance, recognising that your needs will have changed, and existing cover may need reassessment after divorce. For example, additional levels of cover may be required for child support, spousal maintenance and to cover new or additional debt.
- Plan the division of your assets and liabilities.
- Update your Estate Planning needs by reviewing your will and, if necessary, changing beneficiary nominations.
- Review your superannuation, considering and implementing appropriate strategies for saving towards a well-funded retirement.
- Optimise your tax position, which may include unrealised capital gains across family structures and, in collaboration with your accountant, investigating eligibility for capital gains relief.
- Work with you, your mediator and or lawyer to assist you reach a smooth financial settlement.
Your next step…
Please seek advice from your financial adviser early. We believe you deserve to be confident about your future after the end of a relationship. Our collaborative approach aims to support you in achieving financial independence after separation or divorce, and to provide peace of mind that your children will be protected financially should anything happen to you.
Please get in touch today to talk in the strictest confidence about how we can help by phoning 3007 2007 or emailing bcribb@stratusfinancialgroup.com.au, snicholas@stratusfinancialgroup.com.au or jmarshall@stratusfinancialgroup.com.au
At Stratus Financial Group, we help families, professionals, executives, business owners and retirees manage their complex financial affairs and coordinate their professional advisers.
Stratus Financial Group and its advisers are authorised representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. The information on this website is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Stratus Financial Group strongly suggests that no person should act specifically on the basis of the information supplied and should obtain appropriate professional advice based on their own personal circumstances.
- https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/3310.0Main%20Features42017?opendocument&tabname=Summary&prodno=3310.0&issue=2017&num=&view=