Divorce Lawyer: financial planning for newly single individuals!

The emotional trauma when a marriage breaks down can be devastating but the most enduring scars can be financial. Savvy divorce lawyers will tell you ‘financial planning is necessary for the new road ahead’ and it is essential to know your current financial status going forward. Naturally, our leap of faith when marrying leads to great expectations. Consolidating dreams and long-term goals being the norm.

But when this is no longer possible and the reality of divorce is the only option, it is important to have a new concept for your financial future. Although none of us can determine what lies ahead, being prepared by contacting divorce lawyers is the smart choice! According to studies in Australia, divorce can easily result in a loss of income of AU$21K each year. While you should not go through life expecting the worst, this reality cannot be ignored.

Acting swiftly is what many divorce veterans will suggest. When children are involved, applying for a family tax benefit (an allowance designed to help with the cost of raising dependent children less than 21 years of age, and 21 to 25 years who are in full-time study) should be the first step, as only one parent qualifies when there’s shared custody. Seek a divorce lawyer, focus on his or her experience in family law and do not focus on wins, as in this area of the law, settlements can be the norm. Financial advisers will tell you to register for the allowance as soon as possible, hope of reconciliation should not slow you down.

Never assume your current financial planner will act in your best interests. A divorce lawyer should advise that stepping away from the familiar is probably the best route. After all human nature suggests individuals normally form stronger bonds with one spouse over the other and this can often be determined by the spouse with the greater assets!

A Pre-nuptial agreement may be far too late to consider but it’s certainly worth considering before the marriage begins. Suzanne Baldry, director of ‘Baldry Financial Group’ on this topic states; 'Don’t wait for your second marriage, do it for your starter marriage if you’re bringing in disproportionate assets or inheritance. Nobody enters marriage thinking about divorce, but you must be savvy about your circumstances.'