A better outcome for all...
Rob, a recently divorced father of two, agreed with his ex-wife Nicole that their settlement should focus on income support in exchange for a larger share of assets. As part of the settlement, Rob committed to paying child support of $60,000 per annum. Rob was on the top marginal tax rate, meaning he had to earn closer to $120,000 before tax to fund the agreed amount.
After engaging Divorce Financial Advice, Rob learned the potential benefits of a Child Maintenance Trust (CMT).
Anthony explained to Rob that establishing a trust can benefit his children, while acting as a tax-effective option for paying child support. Thanks to Anthony’s guidance, Rob restructured his assets, transferred a lump sum into the CMT and used it to fund the $60,000 support obligations. This delivered an annual tax saving to Rob of $10,000. A better outcome for all.
I feel more confident in my financial future.
Catherine, 42, is a stay-at-home mother of three teenage children. After talking to her solicitor, she felt worried about her financial future – and whether the proposed settlement would meet her family’s needs.
Catherine’s anxiety was compounded by the fact that her ex-husband managed all of their financial affairs. After feeling uncertain, her solicitor referred her to Divorce Financial Advice
We then helped Catherine better understand her cash flow – and used financial modelling to show her:
- The tangible difference between a 60/40 and 70/30 split
- The impact of different asset splits, including selling various investments
- The outcomes of keeping the family home (compared to downsizing or renting)
- The effect of different superannuation choices
We outlined potential strategies for her future and what lifestyle she could expect to have based on each strategy. One of Catherine’s major concerns was the education costs for the three children. Ensuring their education could go on with no interference was a priority. We were able to secure the education funding as part of the settlement agreement whilst ensuring Catherine has enough to meet her day to day costs. One of the key outcomes for Catherine is that she has a much better understanding of her current and future financial position and, more importantly, she is confident in her future financial decisions.