Navigating the Financial Challenges of Divorce
Going through a divorce can be one of life's most difficult and stressful experiences. At Your Vision Financial Solutions, we understand the complexities involved in separating financial ties. After years of caring for your family and often postponing your own goals, now is the time to secure your financial future with guidance and support. Below, we outline how engaging with a financial planner can help you pre divorce but also help you transition smoothly into the post-settlement stage, providing a strong foundation for rebuilding and achieving long-term goals.
Identifying and Evaluating Marital Assets and Liabilities
Understanding the importance of identifying and evaluating all marital assets and liabilities, such as property, investments, superannuation, and debts. Working closely with a financial adviser and a family lawyer can help ensure a fair and equitable division.
Creating Realistic Budgets
Creating realistic pre- and post-divorce budgets is essential. These budgets should consider changes in income, living expenses, eligible family tax benefits, child support, and other financial obligations.
Reviewing Superannuation
Reviewing superannuation funds and working out the division of the various accounts can be quite complex. There are conditions of release and potential tax implications that need to be taken into account and professional advice is crucial.
Understanding Tax Implications
Considering the tax implications of asset division, including the timing of asset sales, winding up businesses or entities, and managing business-related debts, is important. Financial advisers can work closely with accountants to ensure tax implications are appropriately assessed as part of the asset division and assessing potential strategies to minimise tax where possible.
Reviewing Insurance Policies
Reviewing existing insurance policies, such as life, TPD, critical illness, income protection ensures adequate coverage post-divorce. It is very important to review your insurance needs in preparation for divorce as your financial situation may change significantly. Updating beneficiaries accordingly is also important.
Reassessing Financial Goals
Reassessing and redefining financial goals in light of new circumstances can help rebuild finances effectively. Collaboration with professionals, such as family lawyers, mediators, accountants, and therapists, can provide comprehensive support.
Transitioning to a Single Income
Transitioning from a dual-income household to a single income can be challenging. Adjusting your budget and managing expenses to maintain financial stability is crucial. Fairly dividing assets, protecting your interests, and securing your financial future are key aspects to consider.
Reviewing Estate Plan
Ensuring your financial interests are protected during and after the divorce process is crucial. It is important to reassess your estate planning goals and get legal advice to update your Will and Power of Attorney as well as address any other estate planning implications as a result of the divorce. These can be quite complex and professional advice is highly recommended.
Planning for the Future
Planning for the future post-divorce is essential. Setting new financial goals, developing a savings strategy, and planning for retirement ensures you can move forward with confidence.
At Your Vision Financial Solutions, we offer tailored financial planning services for divorcees, designed to navigate this complex new financial landscape. Our support and strategies aim to secure your financial future and achieve stability and confidence.
Book a no-obligation call today to discuss your financial goals and how we can help you achieve them.
Your Vision Financial Solutions Pty Ltd ABN 64 650 296 478 and its Advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. This article has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this article you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.