In 2008, Danielle age 43* was about to complete her divorce settlement With little direction for the future she was wondering how to take control of her finances, gain training to re-enter the work force and protect her assets. Danielle had two children aged 16 and 14 and had not worked in paid employment for 16 years.
In the settlement document, Danielle was to receive full ownership of the family home valued at $500,000 with a $90,000 mortgage; superannuation entitlements of $250,000 through a super split; and a cash component of $350,000. She also received $10,000 p.a. child maintenance.
Danielle wanted to establish a plan for her family’s future while at the same time achieving her own goals and objectives, Including: receive an annual income of $50,000; pursue training to gain employment as a child carer, continue the children’s private education to year 12; pay off the mortgage; and protect the assets for her blood line.
Danielle sought the guidance of Alman Partners and after analysing her financial position, understanding her goals and personal values, Alman Partners drafted a financial roadmap for Danielle. Below are just a few of its features:
- Recommended $90,000 mortgage be paid out immediately
- $220,000 was placed into various fixed interest investments yielding 5% – $12,000 p.a.
- $40,000 funds retained in cash to assist with income shortfall
- Superannuation invested in a balanced approach. Binding death benefit nominations established with each child nominated 50%
- Referred to Centrelink and receiving family tax benefit A and B
- Enrolled at TAFE to gain Advanced Diploma in Child Care
- Will established with Testamentary Trust provisions for each child
- Death and Total and Permanent Insurance established.
Over the past two years Danielle has gained a sense of stability and clarity. Having completed her Child Care qualifications she is now employed in an early learning centre with an annual income of $45,000. As Danielle says, ‘Thanks to Alman Partners I have been able to achieve my lifelong goals and aspirations while at the same time knowing that my family’s financial future is safe. Alman Partners helped to get my financial house in order and have kept it that way.
*Names have been changed to protect the individual’s identity.