Financial planning

Divorce, re-partnering and blended families – what happens to your finances?

By 

You’re over 50, happily single and worked hard towards becoming financially secure. Then you meet “the one” and you now have a partner in life….. and in finances. While assets and the possibility of separation or divorce are probably the last thing on your mind, Certified Financial Planner, Dianne Charman advises new couples to examine their financial history together in order to avoid future complications.

Dianne Charman and Deb discuss the impact of relationships on individual finances, particularly in light of de facto relationships, divorce, re-partnering and blended families.

“This is a risk when we go into relationships,” said Dianne. “I always say to people that you might be a chemistry match, but are you a financial match?”

Dianne encourages people to “rip that Band-Aid off” and discuss the sometimes awkward topics of financial goals, spending habits and behaviours and the possibility of debt accumulation prior to the relationship.

“You become a team and that’s great because you can really achieve a lot, you pool resources, pool your energies and efforts and you can get ahead,” said Dianne.

But Dianne advises; “There’s baggage. What’s in the bag behind you? Just open it up and have a look,” said Dianne.

(Forward written for 2016 39th AMP.NATSEM Income and Wealth report Divorce: For richer, for poorer by AMP Chief Customer Officer, Paul Sainsbury)
One in three Australian marriages are likely to end in divorce. An unsettling reality and not a statistic many of us would contemplate on our wedding day.The emotional shock and effects of separation can be overwhelming, particularly when children are involved.Quite rightly, looking after the emotional wellbeing of all involved should be the priority. However, dealing with this often means the financial effects of separation are delayed, mishandled or even overlooked.And, as the findings in this report – the 39th AMP.NATSEM report – show, the financial effects can be considerable, over both the short and long term.For example, it takes five years to recover from the financial impact of divorce and there remains a 20 per cent gap in the financial well being of divorced and married couples even six years later.The research also indicates that divorce is happening later in life, during our prime wealth accumulation and child rearing years, amplifying the financial repercussions.This report does not attempt to address the complexities of divorce or its sometimes devastating psychological consequences. Rather, it analyses marriage and divorce trends, and looks at the financial impacts of divorce on men, women and children.The report’s objective is to raise awareness of the economic impact of divorce and to enable Australians to make more informed decisions in planning for the future.The findings reinforce the value of having a plan in place to achieve your goals. A clear strategy and a solid financial foundation will go a long way towards accomplishing what matters to you, regardless of life’s twists and turns.
– AMP Chief Customer Officer, Paul Sainsbury.

How divorce can affect people’s finances

*Dianne Charman is an Authorised Representative of AMP Financial Planning Pty Ltd, ABN 89 051 208 327, AFS Licence No. 232706.
Any advice given is general only and has not taken into account your objectives, financial situation or needs.  Because of this, before acting on any advice, you should consult a financial planner to consider how appropriate the advice is to your objectives, financial situation and needs.

About Dianne Charman

Dianne Charman believes in empowerment through knowledge. Building confidence in your financial world. With over 20 years’ experience in the Financial Planning profession, and over 10 years as a practicing Certified Financial Planner, Dianne’s specialist qualifications include Self-Managed Superannuation Funds and Direct shares. She has also held senior roles in funds management, insurance, superannuation; and now is the Director of Jade Financial Group. A family orientated business, working hard to provide Clients with, honest, long term financial advice in order to turn their goals into reality.
In 2010 Dianne founded the Jade Kids Foundation – a not for profit organisation helping our next generation to make better money choices for a secure financial future. Dianne is a proud member of the Association of Financial Advisers (AFA) and in 2012 and 2013 was a Finalist in the AFA Female Excellence in Advice Award. Now Dianne sits on the board as the AFA’s Queensland Director, helping to provide its members with a voice and to continually improve practices. Particularly, Dianne is committed to improving Financial Literacy and leads the AFA Financial Literacy Working Group on important issues for women and our elderly.

Balance Team

This article was written by the brains trust of Balance . We are a talented team of writers and contributors with real life experience and a passion for finding balance.

Leave a Reply

Your email address will not be published. Required fields are marked *