“How Do I Get My Fair Share In The Divorce?”
I am going through a divorce and the only asset of any value that we have is the family home, as well as my husband’s super. I am 53. What should I be considering when negotiating the settlement?
– Jane, Adelaide
Time is critical when negotiating a divorce settlement. The more time you spend negotiating, the more likely it is that the assets will reduce in value so you want to negotiate your settlement as quickly as you can.
There are two things to keep in mind along the way.
The first is to understand what sort of life costs you are likely to have moving forward. People often underestimate the way that divorce increases your expenses: two homes, two sets of utility bills and other fixed costs. The combined expenses post-divorce can be half again of what they were before.
The second thing to look at with a clear head is your asset pool. In your case, there are just two major assets: the family home and your husband’s super. At your age, if you don’t have your own super – or don’t have a lot of it – access to your husband’s super is important. So, unless the super is worth around the same as the home, you are going to have to sell the house. The upside of selling the house is that you will have a lot of choices. For example, you could buy yourself a lower-cost home, or you may decide to rent until you have decided where you would like to live.
Divorce is an emotionally challenging time and you don’t always know where you are going to end up, so jumping into another major purchase, like a home, right away may not be advisable.
By Kate McCallum, financial adviser and author of The Joy of Money; multiforte.com.au
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