Guest Blog By Scott Paterson, Financial Advisor & Founder of Deep Wealth
Going through a separation is a stressful time and, like it or not, money is often front and centre in your discussions. Worryingly, specific research and stats around divorce show increased stress, lower rates of home ownership, reduced superannuation levels and poorer educational outcomes for children.
Getting some financial advice during this time is a proactive way of taking control and acting against these possible outcomes.
What do you want to do?
A key first step is trying to get clarity of your individual goals and what you would like to do so you can review what’s possible and build a money framework that supports your goals.
A great money plan balances your lifestyle now with what you want to have in the future; so it is important to try and think about what your new vision for the future looks like.
For example, where do you want to live? What is the plan for the kids schooling? What is your plan for work? What will happen to those investments you share? How will you build wealth for the future? All these questions involve money just underneath the surface and could be reviewed.
It’s now up to you!
In most relationships, one partner takes a lead role in managing the finances. This often happens through interest but also because of the practicality of dividing up family tasks in a busy household. After a separation, it can take time to be clear about what you are doing so you can confidently manage your money.
Getting a good team around you to help with your money is a simple way to fill this gap.
Work on your money habits and process for building wealth
It sounds boring, but forming good habits with your money is important. Having a good cashflow plan and a simple process for building wealth is a key indicator of financial success and is far more important than picking tricky investments.
A practical list of points to consider:
- Be aware that as one household budget becomes two, adjustments will be needed
- Be sure to review keeping the family home from both a bank and personal cashflow perspective
- Review your personal insurance plan to consider your individual needs
- Review your investment and superannuation strategy in line with your new goals
- Check your superannuation nominations and estate plan to make sure they are in line with your wishes
At Deep Wealth we work with clients to put together financial planning strategies that are tailored to your individual needs and take into account where you are now and where you want to go.
Scott Paterson, Financial Advisor, is the Founder of Deep Wealth, a Canberran born firm that offers expert financial planning advice both online and in person, working with people to grow their wealth. Visit http://deepwealth.com.au to find out more about how Scott can help you.
General Advice Warning: This article is general in nature and does not consider your personal situation. You should seek advice from a financial adviser before making financial decisions.