New financial plan to help keep couples together

With many of Australia’s romantic breakups being attributed to money troubles, can financial planning help couples stay together?

The problem(s):

According to research from Relationships Australia cited by the Financial Planning Association (FPA) of Australia, money is the number one cause of divorce in Australia, and one in three Australians keep money secrets from their partner.

This fits with research from Westpac from earlier this year, which found that a lack of communication around finances is prominent among separating Australian couples, with more than a third (36 per cent) of relationships not in a financially healthy position.

Plus, aGreater Bank survey from December 2017found thatAustralia’s top five most frustrating financial behaviours in a romantic partner were:

• Being careless with money –95%
• Telling people how to spend your money –92%
• Borrowing money from other people –90%
• Being secretive about money –89%
• Lending money to other people –82%

A solution?

The Financial Planning Association (FPA) of Australia has introduced a new way to help couples manage their finances – the Pronuptial Agreement, or Pronup.

Unlike a prenuptial or postnuptial agreement, which are contracts that settle a couple’s assets in the event they split up, the pronup is a “proactive” financial plan intended to help couples achieve their financial goals together.

FPA CEO, Dante De Gori, described the Pronup as “simply a financial plan with a name and purpose people understand, and need.”

“…most Australians identify as being in a relationship — be it engaged, newlyweds, de-facto, same-sex, or mixed-gender relationships … a financial plan from a CFP professional actively removes the wedge money issues can cause in the most promising relationship.”

According to the FPA’s Money and Life website, getting a pronup would involve a visit to a certified financial planner (CFP). Following this meeting (“a bit like a couples counselling session about money”), the CFP will help you assess your financial situation and make plans to help you achieve your goals.

So, how much will one of these pronups set you back? The FPA said that while individual certified financial planners will set their own prices, it cited CoreData research that found the average cost of a financial plan to be $2435.

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