family and finance
methods of financial planning in a family
The key sources of strength and self-sufficiency are family and finance. Almost all the families’ stability depends on their financial conditions. However, many families face problems due to financial instability.
Family finance or otherwise known as personal finance is the financial management, which a family needs to take into account for obtaining, budgeting, saving, and spending monetary resources over time. So while separating, the contributions of any individual financially in developing the family are always taken into account while dividing the wealth.
Although financial planning is a dynamic process, it generally involves five steps. These five steps are:
Assessment: Cars, houses, clothes, stocks, bank accounts, etc. are included in personal assets and the personal liabilities are credit card debt, bank loans, and mortgage.
These are what build up a person’s financial situation, and this situation is to be assessed before developing any sort of financial planning.
Goal Setting: With an objective to meet a person’s financial requirement, a person needs to set his goal in a befitting manner towards his needs. Setting a goal is not just a simple step to make your plan, but it also directs you on how to implement your plan.
Creating A Plan: This sort of planning could include reducing avoidable expenses, increasing income opportunities, or even investing in stocks. This will show you the way you should follow to achieve your goals.
Execution: a person has to be very disciplined and full of perseverance in order to be able to execute his plan. Many families hire a personal advisor to help them with executing their plan.
Monitoring and Reassessment: A strong monitoring has to be made effective during the assessing period.
The individual who puts in more contribution regarding these is the one who is benefitted more from the verdict of the court.
Retaining the property that is legally owned by each of the spouses is looked at during the division of wealth. This is, however, only a starting point. In order to make an order just and equitable, the Family Court has the discretionary power of changing the parties’ property interests. This alteration is made while keeping the cause of the marriage breakdown in mind.
DIVIDING THE WEALTH AFTER SEPARATION
People need to make a decision on how to divide their property when they’ve separated. This can be done in the following few ways:
1. An agreement between you and your de facto partner can be made on how to separate the property without the involvement of the court.
2. An application can be made to the Family Court to formalize the agreement.
3. If an agreement cannot be made, an application to the court can be made to divide the property using legal views between the spouses.
ASPECT LOOKED AT BY THE COURT WHILE DECIDING
There are a few general principles set by the Family Court while considering and deciding the financial disputes after the separation
of a couple, whether in a marriage or a de facto relationship
. The general principles on which the verdict is based on are:
Your assets and debts are to be worked out. That is, laying out a report of what you got or what you owe.
- The financial contributions made by each individual, such as, the wage or salary to the development of a relationship are looked at.
- The indirect financial contributions made by each of the parties, for example, gifts, family inheritances, etc. are taken into account.
- The court will take into account the ability of a person to earn, to take care of children, and things like age, health and financial resources.
- The debts and assets will be shared between each of the parties depending upon either of the family’s financial circumstances.
However, there is no specific formula that draws out a decision on how to divide your property. So you may not find any similarity between your way of dividing the assets and another couple’s that you have heard about.
provided by each of the parties is heard by the judge and a rightful and equitable verdict is given out in favor of the party which has more contributions in the relationship financially. The decision may vary with the unique facts provided to the court about the marriage. As a result, the financial contributions made in the family are referred to as “special”, “extra” or “extraordinary” skills.
Disclaimer : This article provides basic information only and is not a substitute for a professional or legal advice. It is prudent to obtain legal advice from a family lawyer.