Asset Protection during Divorce
Divorce is a tumultuous time, if you haven’t managed funds over the course of your marriage, or simply want to protect your share of the split, a financial adviser can help.
Divorce is a difficult time, pulling a shared life in two. But financially, it can also be incredibly confusing. It is important to consider your funds and how you would like to manage them going forwards. Your considerations should consider investments, appropriate risk, new financial goals, long and short term goals, and more. Preserving the assets you own and having them work and grow for you after divorce can help ease financial stress.
Many people focus on the overall asset split when trying to reach a divorce settlement. Whilst this is important, there are other considerations as well. Understanding which assets will be split, and how liquid or illiquid those assets are is important. A good financial planner is able to tell you how liquid your assets will be and if you will receive any liability with it. It is also very important to consider the tax position of assets. While a divorce settlement will not generally trigger capital gains tax, the ongoing liability transfers with the asset.
For example; the partner receiving the principle place of residence would have no contingent tax liability on that property. The partner receiving the investment property would also ultimately have to pay capital gains tax for the entire ownership period, although this is not payable until the asset is sold.
There are many considerations that relate to superannuation as well. Age and work status are important when splitting superannuation benefits. A good financial planner can consider the implications to ensure that you are negotiating for the right outcome. This will also necessitate the development of new retirement plans.
If you are struggling with these considerations and their implementation we suggest you contact a financial adviser. A financial adviser can help you set yourself up for the future you want, while helping you safeguard the assets you have now. Good quality, comprehensive financial advice should allow for your situation to be clearly and concisely explained, so you always know exactly what your money is doing. We also recommend that clients see their financial advisers multiple times a year, and your adviser should always reach out to you if there are changes to your investments or if any legislative changes will affect your wealth portfolio.
So, in this particularly tumultuous time, lay the money worry down. With some simple instructions from you, a financial planner can make sure your money is well protected and looked after. Leaving you with one less thing to manage.
If you’re in this situation and are worried about your assets being split equitably, we can help.
Contact us for an obligation free discussion about our services.
