Divorce costs the Australian economy $14 billion a year, and recent figures estimate taxpayers now pay close to $1100 per annum to support families in crisis. While the divorce rate declined between 2002 and 2008, statistics reveal it’s on the rise again with close to 50,000 Australians getting a divorce each year since 2008.
As the below graph indicates the median age of divorce has continued on a steady incline over the years. Typically, the older a person gets, the more assets they have accumulated. In the case of divorce this can often make the division of assets more complicated for the parties involved.
Source: ABS divorce statistics 1992 - 2012
Who pays the price?
Research reveals divorce is more costly for Australian women than for men. Just one year after separating, a woman’s household income is 21 per cent lower compared to women in a relationship. Six years later, the woman’s income is still down 12 per cent. However, a man’s household income is similar to a non-separated man in the first year of a split.
In most cases, the woman gets primary care of the kids and as a result gets to keep the house (an asset). However, because she is caring for the children she will most likely miss out on time at work which equals a decrease in superannuation at retirement.
(Stay tuned for our series on women and money with FMD adviser Louise Parker)
If you’re going through separation or divorce contact us or book a FREE financial health check to ensure your finances are taken care of. We also have a range of legal partners who can offer you professional advice and services to ensure a smooth divorce process.
General advice disclaimer: This article has been prepared by FMD Financial and is intended to be a general overview of the subject matter. The information in this article is not intended to be comprehensive and should not be relied upon as such. In preparing this article we have not taken into account the individual objectives or circumstances of any person. Legal, financial and other professional advice should be sought prior to applying the information contained on this article to particular circumstances. FMD Financial, its officers and employees will not be liable for any loss or damage sustained by any person acting in reliance on the information contained on this article. FMD Group Pty Ltd ABN 99 103 115 591 trading as FMD Financial is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977. The FMD advisers are Authorised Representatives of FMD Advisory Services Pty Ltd AFSL 232977.