Start or strengthen a relationship

Article last updated: 20/05/09

Starting a relationship
Embarking on a long-term relationship is a wonderfully exciting time. Equally, after years of being financially independent, it can be difficult to start talking about joint finances.

Be prepared
Merging your funds and assets may be beneficial in terms of bank chanrges and fees.You may want to consider preparing a joint budget, including major expenses such as a wedding that you may want to start saving for.

It may be worth considering what would happen to your joint assets if your relationship ends for whatever reason. While full pre-nuptial agreements are not to everyone’s liking, some form of agreement can be an effective way to safeguard the interests of both partners.

Be smart about relationships
Unfortunately, not every relationship is destined to last. Relationship breakdown is an unfortunate fact of life. It can be an emotionally painful process for everyone involved. In addition to the immediate suffering, the long-term financial costs of a relationship breakdown can be significant.

During a relationship breakdown, you may be required to pay for costs associated with property settlement and legal expenses. You may also have other costs to meet such as buying a new home, household items, car or begin renting. Your savings plan will also be affected when you cannot rely on your partner’s income.

If you have children, it is worth considering that almost half (48 per cent) of divorces involve families with children under 18 and you may need to pay child-support.

Statistics¹
• Almost a third (32 per cent) of marriages are expected to end in divorce, and the likelihood of marriages ending in divorce is increasing.
• The most common reasons for divorce are a lack of time (38 per cent), lack of understanding (27 per cent) and lack of communication (21 per cent). Issues relating to money (20 per cent) and children (14 per cent) also rate highly.

Useful sites
www.relationships.com.au
www.familycourt.gov.au
www.familylaw.gov.au


¹ 3307.0.55.001 – Divorces, Australia, 2007 http://www.abs.gov.au/ausstats/abs@.nsf/mf/3307.0.55.001