Don’t overlook the importance of discussing financial and parenting roles in a relationship. Clair Cranston, Senior Associate in our Family Law team explains why careful consideration is important when making decisions around work and childcare.
The realities of working life and childcare costs make it common for one parent to reduce their hours or take a career break when they have children.
Most couples will carefully consider the short-term effects on their finances but may not be aware of, or discuss, the implications should they separate.
The meaning of fair?
The courts have always recognised the value of non-financial contributions made in the interests of the family, and their goal, on separation, is a fair and equitable division of the matrimonial property. But the meaning of ‘fair’ can prove contentious.
The starting point in many separation arrangements is that the couple divide their assets equally. But it’s not uncommon for parents who give up work to ask for more than half, to compensate for detriment to their career. They may also seek month-to-month support since they are financially dependent on their partner.
If this argument succeeds, the parent who continues to work throughout the marriage may be awarded less than half of the assets.
Have the conversations
There’s no question that financial and non-financial contributions are equally important in families, but the key point here is that couples should make financial and career decisions with their eyes open – including to the implications if they split.
These conversations allow you to plan financially, align your expectations, and reduce the risk of resentment upon separation. This is likely the best approach for everyone, especially the children.
