When a relationship starts to get serious, the last thing that most people want to do is raise questions around financial planning, especially when doing so might suggest you don't entirely trust your partner with your money if things were to go sour. But having honest conversations with your partner can be a very useful thing to do and gives everyone certainty about the future. In this episode, Brett Frankle, Rita Ku and Genevieve Larson explain how to reach agreement on money issues in relationships, ensure legal protection and how best to discuss this with your other half.
Takeaway points:
1. In all divorces the starting point is that assets built up during the marriage will be shared equally.
2. But there will be cases where the 50:50 presumption will be altered, because the overall aim of the family court is to achieve fairness and, of course, each relationship is different.
3. Having a prenup (or the equivalent for civil partners) or a postnup can provide clarity about what the financial outcome should be after separation.
4. Don't be afraid to talk openly and honestly about how money can affect relationships. Situations change – especially when children come along – and being real and informed about your relationship is sensible and healthy.
5. If you choose to have a prenup, you can decide together what you want the financial arrangements to be should 'the unthinkable' happen, (rather than having a judge decide). Just think of it as another insurance policy.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
