A year ago there were half as many divorces as there were marriages. For the marriages, more than one third involved a remarriage for one and also both partners. While marriage seems to be out of fashion, chances are that the statistics for de facto relationships are merely as bleak.
Joint lender accounts and credit cards is a source of trouble, particularly if the split is acrimonious. Generally, if your bank is made aware of the separation, it will stop joint accounts until an agreement is reached. This tends to prevent one partner possibly absconding with the bank account carries on or running up enormous credit card debts.
Under present legal requirements, if a relationship has lasted for at least three years, the two parties have equal privileges to the property unless they may have previously entered into a contracting out agreement for any division of property.
Gifts, personal items such as jewellery or clothing, and inheritances that have not really been mingled with several other property should not be included on your list as these are certainly not usually considered to be relationship house. For some assets, such as your house or business or special items such as artwork and also antique furniture you may need to pay an independent expert to provide a valuation.
To avoid quarrels about dividing bank account proceeds, you should keep an accurate checklist of all financial transactions after the separation date and till a settlement is agreed. If you opt to take a cash payment through the partner as part of your settlement, indicated into a short term deposit whenever you consider your options.
It is much easier to make good decisions on the subject of your money when some time has elapsed and emotions have got settled. Depending on the complexity of the affairs it can take several months or even years to reach a final arrangement of your financial affairs, especially if one party is unco-operative. Don’t forget to update your can as a separation or divorce does not override its ingredients.
The starting point is to make a list of everything you own and everything you owe as with the date of separation. The assets should be valued at what they are worth at the date of separation, not what they were purchased meant for.
There might also be penalties associated with early fulfillment of debt (eg mortgage loans and personal loans). Once you have agreed who will own of which assets, make sure the possession transfers for your major investments are completed properly simply by notifying the relevant specialists or in writing.
Separation and divorce will be traumatic and highly sentimental events but somehow, efficient issues such as what happens with the kids, the house and the money need to be sorted out. In the event you in the process of separating and also contemplating separation there are some actions you can take that will make sorting out your financial affairs much simpler.
Determining which assets to keep or simply sell and how to split the retained assets demands careful consideration. Living costs are higher after a separation, consequently before you commit to taking on that family home and mortgage, prepare a new budget.
Similarly, your debts should be appraised in terms of the current balance left to pay. Your list includes the value of insurance policies, money, superannuation schemes and businesses owned as well as your house and contents, vehicles and lender accounts.
While it can be good for the children to stay in all the family home, it may be unaffordable. Do not in a rush to cash up insurance policies or investments devoid of checking on how much you will lose by way of accumulated bonuses or withdrawal fees.
For some people, heading towards a new relationship might be firstly on their minds, for others it is the last thing. Whatever the case, find some legal advice on how to best protect your now halved assets in future family relationships, otherwise you may find them becoming halved again!