Changing relationships
Looking after the people you love and care for will naturally be one of your highest priorities. Keeping your finances in good order can give you and those who depend you extra peace of mind and security. Let them know your plans, and make sure you have an up to date will.
Marriage and de facto relationships are covered by laws that protect the financial interests and well-being of each partner and of any children.
Superannuation
Your super could be an important source of financial support for people who depend on you financially, especially if you die or become totally and permanently unable to work.
Financial support for people who depend on you |
Check with your fund for details. Keep your fund up to date with your wishes about how you want your benefit distributed if you die.
You may also need extra insurance to cover you for death, disability or loss of income. Often, you can top up your insurance cover through your super fund at attractive rates, possibly without a medical questionnaire or examination. (If you change funds, check how this may affect your insurance.)
Married couples are entitled to direct their employers to make super contributions on behalf of their spouse. For example, someone might choose to have 5% of their super going to their spouse's account and keep the remaining 4% in their regular account. This has the potential to provide significant tax savings as the person paying the super can claim tax deductions for the amount they direct to their spouse. Read more about super splitting on the website of the Australian Taxation Office.
FIDO's tips on superannuation
Having children
Having children can be a joyful time, when you'll have plenty of things on your mind. Finding out more about the financial side of this turning point in your life can help you make smarter decisions and avoid expensive mistakes. FIDO has some useful information that might make the financial aspects of your transition into parenthood easier. Read FIDO's financial tips when having children
Relationship breakdown
If your relationship breaks down, you may need legal advice, especially where children and division of property and other assets are involved. If you have children to support, you may be eligible for government assistance. Visit the website of Centrelink.
Relationship debt
Take care with legal and financial documents you sign with your partner or other family members. If you're happy to share responsibility for a loan, a credit card or a business, that's fine. Just make sure you understand that you may also be making yourself responsible for the whole of a debt, not just your share. Tips on relationship debt
Quick quiz for you and your partner
Have some fun with FIDO's light-hearted quiz to check your partner's, and your own, attitudes and behaviours to money.
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FIDO Website: Printed 09/06/2008
