Financial Recovery after Separation and Financial Recovery after Divorce
Financial recovery after separation or financial recovery after divorce is understandably a goal of many people who are in the process of obtaining a divorce or separating or who have already divorced or separated.
Where you are considering separation or divorce, there will likely be many related issues on your mind, particularly where children are involved. At LGM Family Law, we specialise in all areas of family law. We have experienced, friendly divorce lawyers Brisbane and divorce lawyers North Brisbane who are ready to assist you to resolve your family law issues. Doing that is a very important part of achieving financial recovery after separation or financial recovery after divorce.
We are not financial advisers but we always recommend to our clients that they seek financial planning and tax advice before finalising any family law property settlement. This is an important element of financial recovery after separation and financial recovery after divorce divorce. Whilst this blog is not financial advice and you should seek early financial planning and tax advice from experts in those areas, there are some general points that we have around achieving financial recovery after separation and financial recovery after divorce that may assist you:
- Where possible, reach an amicable family law property settlement with your former partner and keep out of Court: This may not be possible, particularly if your former partner is not yet willing to settle. In theory, you may expect that every person who is recently separated would want to reach agreement and make a final family law property settlement and/or settle arrangements concerning children. Financial recovery after separation may be made easier if you can avoid the legal costs of a court action. Sometimes however, either or both of the people involved may be having difficulty coping emotionally with the separation, the financial information necessary for a person to reach a final family law property settlement may not be available or one party to the relationship may be taking steps to dissipate the property pool. These are just a few examples of why in a particular case, reaching final agreement for the division of property may become quite difficult or court action may become advisable. However, the legal costs involved in a court action and the toll that the court process can take on people generally makes reaching a final family law property settlement out of court a priority where it can be achieved. At LGM Family Law, our Brisbane divorce lawyers and divorce lawyers North Brisbane have the knowledge and experience to assist you in reaching an amicable family law property settlement or agreement for parenting arrangements. If necessary, we will prepare your court action and represent you in court.
- Obtain early financial planning and tax advice: You don’t want to be left in a position where you have concluded a binding family law property settlement only to find subsequently that there may be negative tax consequences for you in the way the family law property settlement was structured. For example, it will be a set back to your achieving financial recovery after separation if you have assessed your property entitlement based purely upon the market value of properties and not taken into account any liability to capital gains tax upon sale of those properties. Obtaining effective financial and tax advice can assist you in avoiding those pitfalls.
- Speak to Centrelink: It is wise to find out as soon as you can what financial assistance may be available to you on and following separation.
- Consider your access to income or funds prior to any final family law property settlement: You should anticipate that whatever financial arrangements were in place during your relationship for payment of weekly living expenses will likely change (often swiftly) on or following separation. As part of recovering financially after separation or recovering financially after divorce, if you earn an income, you will want to consider redirecting your income to an account held in your sole name. If you are not currently employed, then you may need to access any savings in the period before obtaining your final family law property settlement. Remember that the manner in which you may use any funds of the relationship will be taken into account in any final family law property settlement but you are entitled to use funds where needed for payment of your normal living expenses.
- Consider whether you have a claim for payment of spousal maintenance: Obviously, it is going to be a real impediment to achieving financial recovery after separation if you do not have sufficient funds to support yourself whilst you are trying to get back on your feet following separation or divorce. Payment of spousal maintenance by your former partner is not however a given. A number of factors are involved in determining whether you have a claim for payment of spousal maintenance and will depend upon the financial circumstances of each of you and your former partner. You should be aware too that even if you do have a strong claim for payment of spousal maintenance, if your former partner will not agree to pay it, you will need to take the matter to court seeking orders for payment of spousal maintenance. For further information concerning spousal maintenance, see our blog posted earlier this year. Contact LGM Family Law for free initial phone advice concerning your situation. Our experienced divorce lawyers Brisbane and divorce lawyers North Brisbane can assist you to make out any claim that you may have for payment of spousal maintenance. We can also advise you regards any claim for spousal maintenance that may be made against you.
- Set financial goals: As part of ensuring your financial recovery after separation or divorce, it will be important that you have short term as well as medium and longer term financial goals. Your financial planner can assist you with this.
- Have a plan how you will achieve those goals: You may have been out of the workforce for all or part of the period of your relationship. Where you are obtaining a divorce or separating, take the opportunity to think about what training or re-skilling you want to do to improve your income earning capacity.
Contact LGM Family Law for free initial phone advice or a fixed rate initial consultation. Our experienced and friendly Brisbane divorce lawyers and divorce lawyers North Brisbane will assist you to reach an amicable family law property settlement or agreement for parenting arrangements. This in itself will assist you towards financial recovery after separation, If it becomes necessary to take a legal action, we have the expertise to represent you in court and will even at that stage, continue to seek that a settlement be reached with your former partner.