Divorcees Experience Financial Hit

New research from Australia has revealed that it can take up to five years for individuals to recover their financial position following separation.

According to the study by AMP.NATSEM, divorce not only decimates savings and assets but also threatens the ability for many to get back into home ownership, accumulate adequate superannuation, and provide the desired education outcomes for their children.

“Understandably, most couples don’t plan for divorce,” commented Chief Customer Officer Paul Sainsbury. “This lack of planning, combined with the significant disruption and emotional distress of a divorce, often means finances are a lower priority and mishandled during a separation.”

“And with Australians now tending to divorce later – during our mid-40s and prime wealth-accumulating years – the long-term financial impacts can be considerable,” he added.

Key findings from the report include:

• Divorce can significantly delay the ability to rebuild savings, investments, and retirement funds.
• Five years after a marriage breakdown, 40% of divorced mothers and 32% of divorced fathers still live in rental accommodation.
• Re-entering home ownership remains out of reach for many divorced parents even years after separation.

We can provide expert legal advice on divorce and separation, as well as other areas of family law. Contact us today to speak to one of our specialist family lawyers.