Navigating the issues to get you the best financial outcomes

However you look at it, divorce is financially risky! There are a myriad of issues to consider and the decisions you make on each one will have financial implications for years to come.

The only way to ensure the best financial outcome from divorce negotiations is to involve a specialist financial advisor throughout the process.

Here are some of the questions that we at 24kWealth often address for clients undergoing divorce proceedings –

• Access to funds for immediate costs:
  o Do you have secure funds that only you have access to so that you can keep the family running during the divorce process?

“[For couples parting ways the first thing to do is] get an understanding of what your situation is… Early on in separation it’s about coping and making sure you have access to funds to put a roof over your head and access to cash… Think about things like direct debits, who pays the bills and gets access to funds to do all those sorts of things. The last thing you want is for one of those debts to slip between the cracks and someone to end up with a bad credit rating as a result.”

Evan Poole, Sunsuper’s manager of advice operations – sunsuper.com.au

• Living arrangements:
  o Can you afford to remain in the family home?
  o Can you afford a new residence if you move out (now or in the future)?
  o How will this impact your personal and family arrangements?

• Real estate and investment portfolios:
  o Do you sell, transfer or keep (in light of how they are performing)?
  o Can you restructure the holding entities for future asset protection?
  o What tax concessions are available to maximise efficiencies and results?

• Family trusts and companies:
  o Can they be restructured or do they need to be dissolved?
  o Should the underlying assets be kept, divested or dealt with another way?
  o What are the financial impacts of splitting / restructuring (e.g. re loans/UPEs)?

By answering questions like these and fully understanding your situation, we can develop a financial strategy for your divorce proceedings and work with your other advisors towards achieving your desired outcomes.

Leading your team of advisors to prioritise your financial future

Divorce typically makes a fundamental change to your financial circumstances. You need a financial advisor who specialises in divorce, who can work with your lawyer and accountant, to navigate the specific financial uncertainties of separation and achieve the best possible outcome from the family law process.

Lawyers will always pursue a binding settlement, but they usually need instructions on what that settlement needs to comprise. Accountants will always ensure that you meet your tax obligations but may not be qualified to plan your financial future.

A financial advisor who specialises in divorce can help you to spot financial risks arising in negotiations, identify your best financial assets (and which assets to fight for!), and discern the most prudent financial strategies to pursue in your divorce negotiations.

By taking a holistic and comprehensive assessment of the matrimonial portfolio, looking at each of the asset types, locations, performance and risk measures, 24kWealth can give you and your advisors clear direction about what your financial options are and which financial path you need to pursue in order to achieve the financial outcomes you need.