Offfftttt... Look at us dishing up a juicy money dilemma this close to Christmas – alas, money worries do not leave us even if the year is almost out!

I have lots of thoughts on this... They range from fierce protective (pretend) Mumma bear, who wants to look after you and your kids...to pragmatic, rational money expert. I can’t cover them all in here as I want to keep it general (as per my legal guidelines), and want to keep my answer broad for others who may be also going through separation and division of funds, kids, new partners, or even just for people who have money in cash that isn’t working hard enough for their goals. So here I go:

This is a lot of money... And it’s a lot of money to have sitting in cash without a clear plan for it. Given you have several different options, each with their own pros and cons to weigh up – I think your best bet is talking to a Financial Adviser who could model out different scenarios for you. Like buying an investment property yourself, buying a place for you and your kids to live in now (I have no idea where you live, or your income to know if this is a feasible option), or putting it into an investment portfolio.

Any Adviser you do see should be able to help you work through each of these options, and potentially more – but just make sure they would actually look at modelling a property. Not just market linked investments, as you want to get a clear picture before you make a call either way.

I also probably don’t need to remind you, but relationships are never guaranteed (this is the Mumma Bear part coming out!), so I would also caution you to get good legal advice to ensure, for both of you, you have a clear understanding and agreement on your individual assets and how you would handle these should your relationship not work out (we hope for the best, but financially prepare for the worst – sounds very bar humbug, but the best way to think about this is you’re then both sure you’re each there for love – not money).

Regardless of what you decide, if you do move in together, renting a place together feels like a good option to me. Then you are squashed into newly renovated place. This can, in some - but of course not all instances, create a bit of a power imbalance and honestly you don’t want the kids living on edge that they may scuff the new floors with their toys which could create unnecessary drama and resentment (nobody needs any of that kind of BS in their life!)... It also means that if living together, or frankly being together, isn’t exactly what you had both hoped it would be, you haven't just made the mistake of buying a (no doubt expensive) purchase together with sunken costs like stamp duty and building reports, which would be hard to claw back if the market hadn’t grown enough by the time you made that call.

So... I am team love, but with an astrisk*. Too many people find themselves financially trapped and stuck (which is on no ones Christmas or general life wish list) and so I want to make sure you and your kids are set up so, no matter what the future has in store. I want you feel confident that you are able to be financially stable and secure yourself. Always

Now is also a good time to remind you to check and make sure your Insurances are all correct and up to date for your needs (remember Life Insurance is considered a Non-Estate Asset, so if your Ex is still the beneficiary, he will collect those funds no questions asked, even if that's not what you wanted to happen!).

Its’ also a good idea to check your Super beneficiaries – there are very clear guidelines on who can and cannot be a beneficiary under the SIS Act.

And you probs also want to make sure your Will and Estate Plan is up to date, check and see what the rules are where you live about adding any future assets (like property) into the estate plan.

You may want to also get across Joint Tenants vs Tenants in Common – as one has a survivorship component which may not work for you if you wanted to have your kids receive that money in the future (this is for if you ever buy property together as a team).

Also, its a low risk but I feel the need to remind you, we have a Bank Guarantee for up to $250k per institution. My Post-divorce life means keeping one eye on the future while trying to make the most of today. You’ve got kids to think about, a partner of three years, and a big decision: how to protect your independence and grow your wealth while building a life together.

This isn’t just about today—it’s about creating a life where you feel secure, independent, and aligned with your goals, no matter what happens. So, go and speak to an expert and figure out which option is going to work best for you!

Jess

Have a money dilemma?

Money dilemmas can be a nightmare! They can leave you up all night ruminating about what to do, have you feeling alone and isolated or just plain ol' stuck. So, we are here to help. I am going to tackle one a week and give you my unbiased, no BS general thoughts on how to tackle your conundrum. We would love for you to send yours (or someone you know) in. 

Obvs all of this is general advice only... especially important to note any and all of the comments above do not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs.