our latest insights

10 July 2019 | by George Iacovou

Getting Divorced

3 financial impacts to consider when getting divorced

When two people decide to end marriage, they may think of divorce as a fair solution to get their independence. Impacts on the family and primary financials are some of the major hassles of divorce.

Here are some financial concerns during a divorce:

  • How to Split your Assets
    Dividing your assets such as real estate property, pension plans, mutual funds and savings bonds during a divorce can be difficult. You need to identify assets each spouse owns and what assets are jointly owned. These assets are not always divided equally and is decided by the court based on the agreement between you and your spouse. You need to consider which assets will be best for your financial security.
  • Dividing your Debts
    During a divorce, don’t just assume that your debts are being paid off. You should create a list of your debts including mortgages, auto loans, credit cards, loans from retirement plans and other loans. Keep track of any joint credit cards and pay off any outstanding balances. You should be aware that, as long as your name is on the debt, you are responsible for it even many years after divorce.
  • Tax Issues
    It’s important when negotiating a settlement that you understand the tax implications. These could include changes in your filing status and withholding and impacts on child support or who will claim the children as dependents. Understanding your tax situation can save you from paying higher taxes.Every financial situation is unique depending on how much you save, how much you’re putting away for retirement and how much of your income you are spending for expenses. Knowing how to best protect yourself from the difficulties and losses of separation would be the best step of your strategic defense.

If you want to know ways on how to position yourself for the best possible financial advantage, talk to us today at 07 3290 0393.

Unless otherwise expressly stated to the contrary, this website is not designed for the purpose of providing personal financial or investment advice. Information provided does not take into account your particular investment objectives, financial situation or investment needs.

You should assess whether the information on this website is appropriate to your particular investment objectives, financial situation and investment needs. You should do this before making an investment decision on the basis of the information on this website. You can either make this assessment yourself or seek the assistance of an adviser.

Unless otherwise expressly stated to the contrary, the information on this website is not a recommendation or a statement of opinion to make a decision about a financial product or a class of financial products or to invest in any investments, securities or financial products offered by any product issuer, including AMP Limited (ABN 49 079 354 519) (“AMP”) or a member of the AMP group of companies.

As always if you would like more information or want to book a complementary goals meeting with one of our advisers, click the book now button or download our free budget tracker on the link below to get you started.