Finances following relationship breakdown

There is no doubt that generally, both parties are worse of financially following a relationship breakdown.

This is because the old adage “its cheaper lives as two than as one” is the practical reality. Both parties have to accept the reality that neither of them will enjoy the same standard of living that they enjoyed while they were together.

The lower income earner in the relationship is often marginally better off in a capital sense as a result of a property settlement than the higher income earner. However, the higher income earner usually recovers this margin from their higher income within 2-3 years.

The purpose of the Family Law Act is to minimise the impact on finances, and standards of living, following relationship breakdown.

If this can be achieved on a just and equitable basis by agreement, this is a great outcome for both parties. If no agreement can be reached, a family law court will create such an outcome.

If you would like more information, please contact us at Freedom Law for your free initial consultation for all new clients.


Related articles

Your passionate team of family lawyers

Let’s work out your next steps together. Book your free consultation to start the process.