Gary Yan, a Partner at Coote Family Lawyers, recently spoke with the Australian Financial Review about financial power imbalances in a relationship, recognising the red flags and how to restore the balance.

He explains that financial power imbalances in a relationship can be avoided if couples communicate clearly about their finances and financial goals from the outset. 

He warns against signing documents produced by your partner, especially if you don't understand them.  "It's understandable to trust a partner, and it's fair to hope that most partners are trustworthy, but it's still never a good idea to sign documents without understanding them" says Gary. 

If possible, consult a family lawyer before separation to get practical advice on how to sort out your financial affairs.  "Partners in a well-established relationship should have an understanding of how much money is coming in, where it's coming from and where it's going to"  He says "some people leave relationships without a clear grip of their own spending patterns, their bills and just how much money they need to survive.  This can add an extra layer of difficulty when navigating divorce settlements". 

Read the full article from the AFR Weekend publication here: https://www.afr.com/wealth/personal-finance/red-flags-to-show-your-relationship-has-money-troubles-20220916-p5bin1 

If you have any questions or need some legal advice regarding separation and finances, please do not hesitate to contact our team of family law specialists on 03 9804 0035.

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