Financial Crisis NOT Separation Crisis

As a result of the current financial crisis, couples are finding themselves between a rock and a hard place in countless instances. Many are also finding themselves with the added stress of an unhappy relationship. Their financial woes push them toward separation however; their financial difficulties prevent them, in their mind, from calling it quits.

Watts McCray Partner and Accredited Family Law Specialist, Jackie Vincent offered that even though the financial outlook for many is worrying, there is no reason to add to those worries by staying in a relationship that has irrevocably broken down simply because it’s thought to be too expensive to get out of. Ms Vincent explained that there are many options available for a negotiated settlement and it might surprise many to know that these options are not as expensive as they think. Certainly not as expensive as a court proceeding.

Examples of financial issues that many see as insurmountable obstacles to separation in difficult financial times are:

exit fees for fixed interest loans;
diminished superannuation;
diminished share portfolios; and
low property valuations.

Many couples see no way out and decide to cohabitate under the one roof “until the crisis blows over” This of course is fraught with problems and may make communication even more difficult as well as having an adverse impact on any children involved.. Ms Vincent sees Family Lawyers as playing a role in supporting clients with more creative options. She says “there are many different ways of looking at the situation, resolving it and finalising it so that couples and families can move on”.

The world of finance tends to be cyclical and therefore it is safe to say that global markets will ebb and flow well into the future. Also, an individual’s circumstances change from the time of meeting their partner, therefore planning for potential financial ups and downs in your future is also wise. Binding Financial Agreements (BFA’s) or pre-nups are a way to make your financial future a bit more certain. This applies whether you are in a marriage or a de facto relationship which, due to recent amendments to the Family Law Act , sees the same law apply for both.

Ms Vincent says “We are talking to and seeing many people who come to us concerned that their situation is without resolve. In the majority of cases we can put their minds at rest when we open their eyes to the many options available to them”.

Couples shouldn't feel tied to their relationship because of their financial circumstances. Their emotional wellbeing and that of their family doesn't have to plummet in line with the stock market.