Dooley Blog

Don't worry, we aren't going to use the dreaded 'budget' word. But what you do need to ask yourself is where is your money, what do you owe and are you guarantor for someone else?

It's an unfortunate fact that when something goes wrong and people need a solicitor, they often don't know what or where their assets and liabilities are – or even any knowledge (or recollection) of having signed documents as a guarantor! What's so wrong with that?
The bad news… a lot! If you become involved in a legal matter without knowing what your financial situation is you can find yourself in a more serious situation than anticipated, and this lack of knowledge hits you where it really hurts….YOUR POCKET as it can substantially increase the work involved and therefore your legal fees.

The good news… it's free to fix. All you have to do is a bit of financial housekeeping.

1. Find out what you have.

Become aware of what bank accounts you have – you might actually earn some interest consolidating some different accounts that you have bouncing around. This goes for superannuation too.

What other assets do you have? Are the benefits of those assets being maximised? Are your assets protected from future claims?

2. Find out what you owe.

When are these debts payable? Could you save money and angst by consolidating? Are you in danger of being sued for payments that you've forgotten about?

3. Are you risking your financial future for someone else?

If you are a guarantor for another person, you have undertaken a serious responsibility. A responsibility which could have serious implications for your future if that person were to default on payment arrangements.

While the news might not be all good, once you've run your assessment it will be a huge benefit to you to know your starting point and not have any issues lurking around that could cost you dearly; as the saying goes, prevention is easier, better and often cheaper than finding a cure..

Do you need to talk to us?

 

 

 

Imagine going to your doctor to get your car serviced, or getting your mechanic to do a quick medical for you.  How about advice on getting rid of fleas from your mortgage broker, or stock broking assistance from your physiotherapist?

Unless your body needs an oil change or you are purchasing shares in health companies, you might want to consider looking elsewhere for that advice!

Sound ludicrous?

Interestingly enough, similar scenarios occur all the time, but because it’s not in areas of service that people are overly familiar with, they may not realise that it’s even happening.

A typical scenario we see:

Mary’s de facto relationship has broken down.  She has a young daughter, who she plans to have live with her.  Mary needs to either sell or refinance her property, and possibly purchase a new property.  She also needs to ensure that her financial situation is well protected to make sure her daughter is cared for in a stable environment.  Oh, and Mary also has a business that her former de facto partner is a financial partner in.

Not to worry, Mary just needs to see her bank and get it sorted, right?

Big mistake.  In that short little scenario several big pitfalls are waiting for Mary unless she obtains the right advice.

In the scenario above, our heroine requires legal advice about the breakdown of her relationship and the parenting and property implications and business law advice, she also needs a mortgage broker, a financial advisor, taxation and accounting advice and realistically, a counselor or psychologist.

And if she didn’t? Mary could run many risks: unfavourable arrangements for the care of her child, financial loss from not severing her financial ties to her former partner and having a claim against her business and/or property which she has refinanced or purchased at a later time.  

Not to be overlooked are the serious implications of not also caring for your emotional health.

So why wouldn’t someone seek the appropriate professional assistance? A lot of the time it is due to the perceived cost involved and sometimes its simply because people don’t realize the complexities of their own situation. The most  important question to ask yourself about getting advice is how much will not getting the right advice cost me? In as simple a transaction as refinancing, an experienced broker may be able to save you thousands of dollars, or a solicitor may assist you to ensure that your assets are safe from any future claims.

If you have a professional you trust, it’s wise to ask them whether they have any recommendations for other professionals to help you.  That’s where a strong network of professionals is not only an asset to that business, but to all of their clients as well.

So next time you are thinking of skipping the step of seeking out the right professionals to assist you in your situation, think of the doctor changing the oil in your car and remember that contrary to the old saying, what you don’t know will almost always hurt you.

Please don’t hesitate to contact us to make an enquiry about your situation.