A paper from the Australian Institute of Family Studies highlights that divorce can have long term impacts on your economic wellbeing.This report is one of the first to look at the long term financial effects of divorce on the family. It involved a study of people aged 55-74 and compared divorced to never divorced people’s economic circumstances. The findings were from a limited sample size, and are only averages, so you may well be an exception to the rule.
The key findings were; if you divorced you are likely to be worse off financially than people who don’t divorce, however, if you remarry most of this negative impact will be reduced. The short term financial impacts are clear to many, however the long term effects of shouldering all financial burdens should not be ignored.
Home ownership was one of the most significant indicators in the study of economic wellbeing. Married (and never divorced) people’s outright home ownership rates are almost doubles that of divorced people.
The best way to deal with this when going through separation is to get sound financial advice, and in our opinion that advice should include buying property as soon as you can. When you come to the end of a property settlement you should look for a financial planner and arrange a meeting to discuss your options. Careful planning will avoid many long term financial problems.
Erina Legal does not provide financial advice but we can assist you in reviewing contracts and terms for loans and investments.
Erina Legal can assist you in purchasing and selling property. Call us now to discuss how on 02 4365 6556.
