When you're going through the pain and emotional battles of a divorce, it's easy to overlook financial issues that can hurt you long after any hard feelings have healed.
1. Get smart
Make copies of all important financial records including: income, investments, expenses, debts and assets.
If you believe that your former partner may liquidate or retitle assets, protect your family's financial stability and seek immediate legal advice.
2. Try mediation
If you think you are ale to come to a fair agreement consider mediation. It will save you lots of money in legal fees and is often less stressful than using the courts.
3. If mediation doesn't work consider a collaborative lawyer
If you adopt a collaborative process you, your former partner and your respective lawyers formally agree (i.e. sign a written agreement) to work together to find a mutually acceptable and fair solution, without involving the Courts. This process generally encourages co-operation and in the long run will save you time and money.
4. Treat your divorce like a business arrangement
Separation is likely to be one of the hardest periods of time in your life. The more you can keep your emotions out of your negotiations the quicker and cheaper it is likely to be.
5. Produce an accurate budget
When you're going through the pain and stress of separation it's easy to overlook things. Don't overlook or underestimate your cost of living and if you need to, get help from a financial professional.
6. Don't fight over the small stuff
In a time of distress and uncertainty it's easy to get emotionally attached to different possessions. However, do you really want to spend $1000's arguing over who gets grandma's teaspoons?
7. Don't use your lawyer as a counsellor or financial planner
Lawyers hourly rates are one of the highest of all professional groups. If you need financial or emotional support it's cheaper and more effective to engage the services of other professionals e.g. a therapist, counsellor or financial planner.
8. Update your legal documents and insurances
Don't forget to change the beneficiaries on your life insurance policies and will.
9. Get life insurance
What would happen if you or your former partner were to die suddenly? Would your children be financially taken care of and protected? In most cases, premature death or disability would result in a significant loss of income for any family - together or separated. Appropriate insurance cover can guarantee your family's security.
10. Don't forget Superannuation
Recent legal changes make it now possible for superannuation to be split. It's treated like any other 'property' item and is often the largest asset in a family's asset portfolio.
To read more on
superannuation click here.
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