Planning for Separation or Divorce

According to statistics from the Australian Bureau of Statistics, the most common age for those getting a divorce is 45.5 for males and 42.9 for females.  This means that most couples going through a separation or divorce are already likely established financially. As difficult and often heart-breaking as this situation can be, the reality is that around 30% of married couples will divorce in Australia, and these divorces can have catastrophic financial impacts, both immediately and into the future.

While many people might feel relief after a separation is done and dusted, divorce can have steep costs on their health and financial situation for years to come. As well as leaving both partners with technically half as much as they had before (with a 50:50 split), now the two households have twice as many bills and two individual retirements to plan for.

Research has also shown that women come out of divorce with more serious impacts than men, with a decline in household income of up to 30%. If children are involved, we can see a pattern of single-parent families with vastly reduced means (in Australia, 34% of single-parent families are in poverty).

When it comes to ageing and retirement, the impacts are very severe (older divorce leads to a 45% drop in standard of living for women and a 21% drop for men), while women often have considerably less superannuation despite statistically living longer. This can create real social issues and dramatically impact quality of life for older men and women. The Separation Guide’s research shows societal costs of up to $870,000 per couple!

This is why we are so passionate about making sure our clients or readers are well-prepared to navigate through this challenging time in a way that protects them and their future. You shouldn’t have to give up your financial security in order to live a life you are happy with.