Easiest Way to Lose Money

It is completely possible.

Hubby was divorced after 14 years of marriage and with 3 primary school aged kids. She took him for 50% which meant he got to keep his superannuation, but nothing else (yes, super is included in the calculation - but she had none). Because of the age of the kids she was legally entitled to take 75% if she had majority care.

Was a bit hard to take when he's been the sole income earner for 12 years and she was the one that chose to leave

My ex and I had no kids, and stuff all super, so everything was split 50/50

 

Most women I know have and "out" plan ... but don't act on it.

The knowledge and security of having options seems to make them more determined to stay "in" and work at the relationship, knowing they are there because they "want to" rather than "have to"

 

'She took him for 50%’. Really?

Didn't they decide to have kids together - three times. Didn't they agree that he would work outside the home and she would look after the kids?

I can't stand it when one partner gives their ex a hard time because they 'stayed at home with the kids'. The implication is that the one who was the income earner owns all the money!

Well, stuff that! Having a family is a shared enterprise.

There is a lot of thankless, boring, invisible work done by mothers while their partner is at work. There is a value to that in itself and also because it frees up the other partner to be the income earner.

Women usually put their careers on hold, losing super in the process.

After a divorce, the partner who stayed working retains their ability to earn. The partner who didn't, is seriously disadvantaged often for the rest of their life if they continue to be the main caregiver.

 

I had a property prior to my marriage and it's been lumped in with the rest of the portfolio. My % entitlement of our assets is slightly higher because of this but that figure in no way grants me automatic rights to keep it.

 

Actually - no - you're completely off target ... and I was giving an example about how one party (or the other) can end up penniless

 

We know its divorce... .but this is what M Yardney has to say about this issue.... for those interested


1. Putting all your eggs in one industry basket
It’s common for investors to be lured in to a particular investment location by the promise of rapid industry growth in that area.

Mining towns are a perfect example: they become investment hots spots for those with the hope of achieving quick high returns – which may be the case for some who get their timing right.

But what happens when the industry slows down?

Suddenly, the driving force behind the area has disappeared and likely a good percentage of its population with it!


2. Ineffective joint ventures
Joint ventures in investment properties can be brilliant – but they can also bomb.

For new investors who need a little help getting a foot on the property ladder, teaming up with other like-minded investors can be just the boost they need.

However, signing up for something as complex as investing in a property with others is no small undertaking, and needs to be stepped into with caution and good planning.

Firstly, all parties in the joint venture need to set and be aware of the common goals, time frames and risk tolerances.

There also needs to be clearly defined and allocated tasks for each party.

Everyone needs to know who is responsible for each process of the investment, such as all the facets of organising the finances, council approvals, insurances, etc.

Miscommunication and missed deadlines are common if the work isn’t allocated effectively.



3. Buying for the beach lifestyle
Wouldn’t we all love to live by the seaside?

While the prospect of a coastal lifestyle is appealing, in the property market world it often just doesn’t hold up in long-term growth performance.

This is because most coastal areas are generally tourism and retirement communities with no multi-pronged commerce industries driving the local market.

When the economy turns south, properties are often available in abundance, which drives down rental yields and stagnates growth.

Of course this isn’t a hard-and-fast rule for all coastal properties, but I’ve seen many inexperienced investors who have been caught out and wound up stuck with a slow-performing asset for years.


4. Caught out by body corp
The house vs unit debate has been ping-ponging around for years, and one of the clear downsides to purchasing a unit or apartment can never be refuted: it is that you will have to pay body corporate fees.

These cover the shared expenses of the block of units, such as building insurances, building and grounds maintenance, electricity and on-site amenities like pools and gyms.

They are a necessary evil of multi-dwelling complexes and unfortunately, body corporate fees never go away – if anything, they tend to increase as the building ages and requires more maintenance.


5. Letting your heart rule your head
Buying a home for yourself is an emotionally driven experience.

The problem is when buying an investment property, even though it’s for other people to live in, we’re not always immune to the same emotions.

Property investment should be a calculated strategy based on numbers and risk – that means laying aside the ‘oohs’ and ‘aahs’ of the dwelling itself and making sure it stacks up as a worthy investment that will create wealth for you long-term.

Too many inexperienced investors want to buy the type of property they can imagine themselves living in.

Other’s buy a property close to where they live (because they’re familiar with the area), near where they want to holiday or where they want to retire.

These are all emotional reasons for buying – not business reasons.

6. Jumping in feet first without checking the depth
One of the basic rules for all investors is do careful due diligence.

Research the market, the suburb, the street the property and the price.

Once you’ve found a property you’re interested in, it’s also worth researching the motivation of the vendor – why is he selling?


7. Buying in high population growth areas
An easy mistake to make is buying in an area where there is strong population growth and lot’s of new homes being built, thinking this will translate into capital growth.

This isn’t necessarily the case.

Usually there is adequate land and building supply in these new outer suburbs and because of this, while the demand drives are there, there is more than enough supply to mop it up.

Also the demographics in these suburbs means people will be more interest rate sensitive – again making them poor areas to invest.

Expert tip:

What you need to look for is a combination of strong economics and industry, population growth and limited supply of land available for development.