A matrimonial divorce settlement is NOT an exact science. If a financial divorce settlement was a straight mathematical equation, we wouldn’t need courts and lawyers to resolve matters. Courts are usually required, under Family Law legislation, to take into account a range of factors in deciding who gets what. Too many women settle for a 50% split of the matrimonial property WITHOUT taking into account matters such as significant disparities between what your husband earns and your own weekly /monthly income and any restrictions your age or health might have on your capacity to earn income.
Another mistake is letting the other spouse retain the matrimonial home EVEN IF you have the ability to buy him out. Real estate property has a habit of increasing in value without you having to do anything. If you pass this up and your spouse pays you out then the problem often is that you don’t then have enough money to purchase a property of your own. Deposits, stamp duty, legal fees etc. can put buying another home out of your reach. You’re left paying out dead money in rent.
While not as common a mistake, some women will seek to keep the matrimonial home when they really CAN’T afford to financially. If buying out your husband’s share in the house is going to involve you taking out a big loan, you need to factor in the monthly loan repayments PLUS outgoings such as rates, building insurance, public liability insurance and general maintenance costs. Only then will you know whether or not you can actually afford to keep the house.
Read More... The TOP 12 Mistakes a Woman Should Avoid When It Comes to Divorce Planning
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