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?”
WATCH: Gwyneth chats about how the pair co-parent since their split. Post continues below.
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.”
Statistically speaking, 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 well-being of all involved should be the priority. However, dealing with this often means the financial effects of separation are delayed, mishandled or even overlooked.
This means 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.
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.
