Divorce isn’t something most married couples want to think about. After all, you have made a commitment to be with each other for the rest of your lives. However, just as some couples invest in prenups, it is a good idea to have a financial plan.
It doesn’t mean you’re getting divorced. Preparing your wallet means either party will be better able to deal with future issues, such as separation or even unexpected death.
Of course, divorces can also be expensive. Being prepared for them will help to reduce the impact on your wallet and help you to gain financial stability and independence after the divorce.
It takes a few hours to create a plan that allows both parties to come out of a divorce with financial stability. It doesn’t mean you are ever going to divorce, instead, you’ve simply secured your finances. In fact, many couples say this helps each party to feel more independent and, therefore, makes it easier to keep balance in the relationship.
The best place to start is with a good divorce lawyer Sydney. It’s useful to know one if you’re going to get divorced. But, they are also the best people to advise you on all the different issues couples face when they get divorced. It’s easier to prepare if you know what to prepare for!
Think About Assets
Most couples will have a house. You may have several or other assets of value. You’ll need to think about what happens to these in a divorce. The ideal scenario is a fifty/fifty split, including selling the house. However, if you have children this isn’t usually a practical option.
Thinking about this now will help you to plan which partner will stay in the house, how they can afford to keep paying the mortgage and bills, and when the other partner will get their half of the property.
Assess Your Finances & Create Budgets
Alongside assets, you need to look at what liabilities you currently owe and then create an imaginary budget for both partners after a divorce. The aim is to amicably sort out a way in which both of you can afford to live and move forward. If you think about it today you’ll find that it’s surprisingly easy to resolve any issues.
Put A Little Aside
Putting funds aside in individual accounts is always a good idea. Simply add a set amount to one account for each of you. To keep things fair, save the same amount in each account. Then, if you decide to divorce, both of you have a cash reserve that can be accessed. If you never divorce you simply have some extra funds for retirement.
Don’t forget to consider childcare costs. This is relevant if you have children or are hoping to have them. It means one partner will need more funds than the other and they are the ones likely to stay in the house.
If you haven’t planned this in advance and are now considering divorce, create a financial plan straightaway. It will make the whole process easier.