Divorce is bad for bank account: research

divorceDivorce is bad for your bank account, particularly for those who stay single, new research shows.

With divorced single men having $762,000 less in assets at age 55 than those who have stayed married, and divorced single women having about $645,000 less than women who have stayed married, the research shows a bleak financial outlook for divorcees.

The joint research conducted by the Australian Institute of Family Studies (AIFS), the Australian National University and the University of Queensland involved almost 7700 households from 2001 to 2010.

It found those who divorce were likely to have had lower household incomes prior to their marriage break-up than those who remained married.

Unless they remarried, the divorce then widened the financial gap.

Men who stayed married had a median net household assets level of $1.044 million in the age range 55-64, while their single divorced counterparts had just $282,000 in assets.

Those who had divorced and repartnered fared better, with a median level of $844,000 in the same age range.

For single divorced women, the outlook was also poorer compared to those who stayed married.

At ages 55-64, women who stayed in their first marriage had a median assets level of $1 million, while their single divorced counterparts had $355,000.

Divorced women who repartnered fared better, having a median asset level of $809,000 in that age range.

AIFS senior research fellow Lixia Qu said 55- to 64-year-old single divorced women might fare better in asset levels than their exes, because they more often became the primary carer for children and so kept the family home.

But she said divorce had a significant financial impact through to retirement for both parties.

“Divorce has a big impact on both men and women, whose assets continue to fall behind married households,” Dr Qu said in a statement.

“And this impacts significantly on retirement income for divorced men and women who remained single, making them more reliant on government support to get by.”

Divorce also had a significant impact on women’s immediate equivalised income levels, a figure which adjusts actual income to take into account the number and age of people living in a household.

While men’s equivalised income levels generally continued to rise, women’s dipped considerably immediately after a divorce, but often recovered over six or seven years through a combination of increased employment, repartnering and increased government benefits.

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Teens get cash bonus, no strings

Schoolkids-bonus, welfareTEENAGERS have been paid the SchoolKids bonus of up to $820 directly into their bank accounts – and they don’t have to show how they spend it.

The Daily Telegraph has learned some students aged 16-19 on Youth Allowance received the no-strings-attached payment in June.

It is almost four times the amount of the $220.40 fortnightly Youth Allowance payments given to students who are under 18 and living at home.

The SchoolKids Bonus is designed to help pay for education costs at primary and high school, and the majority of payments were made to families receiving family tax benefit part A.

However, full-time students aged 16-19 on Youth Allowance, AbStudy (living allowance) or the disability support pension with pensioner education supplement are also eligible for the bonus.

Federal opposition education spokesman Christopher Pyne said the “cash splash” could be spent on anything from a new pair of sneakers “to a trip down to the local pub and a flutter on the pokies”.

“The failure of the policy is that it is not linked to education expenses,” he said.

“The government paid this money as compensation for the carbon tax and dressed it up as education but it bears no relation to education.

“This government has a record of a shambolic handling of new government programs and spending commitments and this is just the latest example.”

The revelations come after The Sunday Telegraph revealed many parents have also been paid the $820 SchoolKids bonus despite not having children at school.

The Gillard government confirmed there was a loophole that did not require parents to offer proof of school attendance to get the cash.

Tasmanian independent MP Andrew Wilkie raised concerns earlier this year about the bonus, warning it would go to pokies and alcohol, like the government’s 2008 stimulus package payment.

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Child support formula baffles 90% of parents – study

calculatorTHE child support scheme, which underwent a major reform in 2008, is so complex that only a handful of experts can understand the rules, a study shows.

Most of the 1 and a half million divorced and separated parents who pay or receive child support have no idea how the calculations are worked out, and most of those who claim to know the rules are wrong.

”The new scheme was intended to reflect the complexity of modern families, but it is so complicated that hardly anyone understands it,” said the lead investigator Bruce Smyth, an associate professor in demography and social research at the Australian National University.

As a result of this, it was unlikely many parents were using their children as pawns to extract the most financial gain from the system, despite widespread perceptions to the contrary, he said.

Professor Smyth will present the findings at the Australian Institute of Family Studies annual conference this week.

The study, involving thousands of separated and divorced parents, some followed for four years, is part of an evaluation of the reforms that changed the way child support liabilities were calculated and family tax benefits split. It suggests the Child Support Agency has not been able to keep parents well informed of how overnight stays with a non-resident parent can affect payments and family tax benefits.

The reforms were promoted as being fairer to mothers and fathers, encouraging more contact between children and non-resident parents, and reducing conflict between parents. But they were opposed by some women’s groups, who feared mothers would receive reduced child support and family tax benefits. As well, there were concerns fathers could insist on children having more overnight stays simply to reduce child support payments.

Under the new rules, instead of child support being based on a non-resident parent’s income, it was based on a calculation of what children cost. And instead of reductions in child support payments kicking in when children spent 30 per cent of the week with a non-resident parent they began at 14 per cent, or one overnight visit a week.

Professor Smyth said the evidence suggested those who bargained over overnight child stays to maximise financial gain were in a minority. But those who did so were likely to be acting out of misinformation and hearsay.

”Where judicial officers and mediators were once able to do a quick calculation of child support liability on the back of an envelope, they now need to enter information into the [agency’s] online child support/FTB estimator,” Professor Smyth said.

Few surveyed parents knew that one overnight stay would trigger a 24 per cent reduction in child support. Most did not know the connection between payment and stays, while others thought it took more or fewer nights. About 70 per cent did not understand the rules, less than one in 10 understood the rules correctly and 20 per cent claimed to know the rules but were wrong.

Professor Smyth said the evidence suggested those who bargained over overnight child stays to maximise financial gain were in a minority. But those who did so were likely to be acting out of misinformation and hearsay.

”There might be some dads who want their kids more nights but think they can’t afford it because they don’t know their child support liabilities will be lower,” he said. ”And there might be some mums resisting children’s extra nights with the father because they have the wrong information about how much money they might lose.”

Adele Horin

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‘Dangerous’ NSW mum wins back stolen kids

munchausen-by-proxy-syndromeROBBED of her beloved kids and branded a “dangerous” mum, a NSW woman has spoken of her joy of being reunited with her daughter after nine years of separation.

For 19-years, the mother struggled to keep her family together as childcare authorities were hellbent on tearing them apart.

But her courage and conviction has finally won. The baby “stolen” from her 23 days after she entered the world in 2002 is safely by her side.

The youngster has spent her life in foster care after childcare authorities believed the mum suffered from the discredited condition known as Munchausen syndrome by proxy in 1993.

“I’ve been waiting 10 years to bring my baby home,” said the elated mum, who has requested not to be identified for the childrens’ sake. She was labelled with the condition, in which mothers harm and even kill their children to gain attention, after her second-born son failed to thrive. Her next two children were removed as well.

Community Services Minister Pru Goward told The Sunday Telegraph she was pleased the matter had been resolved, but has demanded an explanation from her department.

“This will help my understanding of the events which led to the removal of these children,” said Ms Goward, who made representations on the mother’s part when she was in opposition.

With three children removed between 1993 and 2002, the woman went on the run to give birth to a son in December 2003 to avoid detection. Authorities made the child a ward of the state in her absence and when she was tracked down in October 2008 in Moree, they removed the boy who was then four.

After an 18-month court battle, the boy was returned to his mother in April 2010 and has lived with her ever since.

The two older children are grown up and no longer wards of the state. Her nine-year-old daughter had expressed wishes to be returned to her real mother and after her foster carer relinquished care, the child was returned.

“She gets in bed with me in the morning and says: ‘I’m so happy’, it’s just beautiful’,’ the woman said.

Munchausen syndrome by proxy was coined by British paediatrician Sir Roy Meadow.

It was discredited in 2003 after Meadows’ evidence wrongly jailed three women for murder.

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TOUGH LOVE: Budget targets single parents to save $700m

budget-2012-single-parent-payments-slashedALL single, unemployed parents will have their parenting support payments axed when their youngest child turns eight – a tough-love Budget measure designed to force them back to work.

It is understood the Government will next week abolish an arrangement set in 2006 which allows single unemployed mothers to receive $648.50 a fortnight until their youngest child turns 16.

About 100,000 single parents will now lose this benefit when their children turn eight. For partnered parents, income support – currently $442 a fortnight – will end when the youngest child turns six.

The measure will come into effect in July 2013 and will deliver a $700 million saving to the Government.

Parents who choose not to find work will be penalised about $120 a fortnight by being transferred on to the Newstart allowance.

100,000 single parents to lose benefits in Budget cuts

Combined with an increase in childcare payments and a tripling of the tax-free threshhold, the Government hopes the measure will encourage more jobless parents back into the workforce.

The policy will also remove current inequities in the parenting payments scheme, which is accessed by an estimated 630,000 people.

The scheme, modified in 2006 by the Howard government to lower the threshold for claims, left existing claimants on a grandfathering arrangement where they continued to receive the payment until their children turned 16.

This gave them an advantage over new claimants subject to the lower cut-off point.

Exemptions will continue to apply for parents caring for children with disabilities or whose particular circumstances prevent them from being able to work.

Employment and Workplace Relations Minister Bill Shorten said the Government believed that, once children were of school age, parents had no excuse to not be looking for work.

“We believe that, once children are at school, parents should be encouraged and supported back into the workforce,” he said.

“A job is essential to a family’s wellbeing and helping them make ends meet.

“Public income support ideally should be a temporary measure and should not be a disincentive for people finding paid work.”

Meanwhile, Defence will be hit with savage Budget cuts of more than $4 billion, including the delay of the joint strike fighter aircraft for two years to save about $1.6 billion.

Opposition leader Tony Abbott expressed doubt that the Government would go through with the welfare cuts, which would also reportedly affect disability support pensioners and welfare beneficiaries who travelled overseas for more than six weeks.

“I will believe it when I see it. This is a government which often talks tough but rarely delivers,” he said.

Protection orders are not being abused

apprehended-personal-violence-orders-magistrates-surveyA survey of Apprehended Personal Violence Orders (APVOs) has found they are mostly being used responsibly.

APVOs can be granted if a person fears they are in need of protection from someone with whom they do not have a personal relationship.

The NSW Bureau of Crime Statistics and Research conducted an online survey of 210 NSW magistrates and registrars to assess whether, and how frequently, APVOs were being sought for frivolous reasons.

Of the 207 respondents who had dealt with APVOs in the past 12 months, more than half indicated they occasionally or sometimes dealt with frivolous or vexatious APVOs.

Almost a third said they rarely dealt with frivolous or vexatious APVOs and five said they never had.

Only 10 per cent reported more than half of the APVOs they dealt with were frivolous.

Neighbours and former friends are most often the parties involved in the frivolous claims, the survey found.

More than 60 per cent of respondents said neighbours were frequently, usually or almost always involved in these types of matters.

Free Legal Sessions to Empower Women

Illawarra-Womens-Health-CentreJess didn’t have a plan when she left her violent partner in the middle of the night.

She grabbed their two-month-old son and a few belongings and drove to her parent’s house, unsure of what would happen tomorrow or what her next move should be.

‘‘Perhaps if I’d had that information earlier, before things reached a crisis point, perhaps I would have made the decision to leave earlier,’’ said Jess, whose name has been changed.

‘‘I was terrified. I was afraid that he would escalate the situation when I left.’’

Jess was aided by the police and the Illawarra Women’s Health Centre, which is hosting a series of legal information sessions to educate women considering leaving a difficult relationship.

Topics include victims compensation (tomorrow), family law and children (April 24), family lawand property settlements (May 1) and domestic violence and Apprehended Domestic ViolenceOrders (May 8).

Centre CEO Carol Berry said the free sessions were about empowering women by teaching them their rights.

‘‘We think that domestic violence is still a major issue in the Illawarra,’’ she said.

‘‘Some of the stories we hear are terribly concerning.

‘‘I think it makes women feel more comfortable with their decision (to leave the relationship) if they understand where they stand (legally).’’

The sessions will be run by all-woman legal firm Rachel Stubbs and Associates, which has offices in Wollongong, Bowral and Camden.

Ms Stubbs said many women stayed with their violent partner because he threatened to retain their children.

Ms Stubbs welcomed proposed changes to the Family Law Act, expected to take effect mid-year, which would redefine family violence to include the withholding of financial support and psychological abuse.

‘‘This will have impact in local court AVO proceedings, where traditionally you had to have some physical evidence,’’ she said. ‘‘The family court takes AVOs seriously.’’

Illawarra Women’s Health Centre is located at 2-14 Belfast Ave, Warilla.

To register for information sessions, which start at 11am, phone 4255 6800.

Where there’s a Will, there’s a chance for wasteful litigation

contested-willsWhat better way to see the gamut of domestic despair, distrust, estrangement, recrimination, spite, and the bounty of the lawyer honey pot, than through families tearing at each other in courtrooms.

Wills, succession and family provisions provide the landscape for some of the spellbinding human dramas that unfold in the equity courts.

There’s nothing quite like an intra-family dispute over a relatively small amount of money to stir the passions, bring out the silks and the no win, no fee speculators.

It’s a nice change from the deadening drum beat of commercial woes.

But what may surprise a lot of people is the wide discretion judges have to rewrite people’s wills and overturn their express wishes.

The notion that loosely exists that a will is an impermeable document is quickly shaken when, in appropriate cases, frozen-out relatives manage to get their hand in the till.

There are at least eight instances from last year in the New South Wales Supreme Court where judges rewrote wills and, in some of them, made provision for people who had been specifically excluded by the deceased.

For instance, in a case called Charnock v Handley, the deceased excluded his two daughters as beneficiaries of his estate and left all his money to a friend.

Associate Justice Philip Hallen found that a statement written by the deceased one day before he died, in which he described in negative terms his relationship with his two estranged daughters, was simply inaccurate.

So Hallen made provisions out of the small estate of less than $10,000 to each of the daughters and ordered their costs be paid by the estate.

In Bourke v Keep, another case from last year, the deceased was survived by three children, but she distributed the estate between two of them in equal shares, saying in her will that the other daughter had a ”complete lack of concern or contact with me and other members of the family over a long period of time”.

Associate Justice Richard Macready found that the excluded plaintiff, who had to care for a disabled child, was entitled to $200,000, which resulted in a reduction of the shares of the two other children by $140,000 each and an increase in the allocation to lawyers from nil to $80,000. The costs of the losing defendants had to be borne by the estate.

It does not matter what an aged mother or father may feel about one or other of their children.

If some sort of merit can be demonstrated, decades of family history can be cast aside by a judge and funds apportioned according to need, rather than loving wishes and/or revenge.

In a similar case, Franks v Franks, the court rejected assertions of the deceased critical of one of her sons to whom she left a small legacy of $20,000. She claimed he had abused and harmed her and so left the vast bulk of her estate to her other son.

Nonetheless, the court awarded a life interest in a Port Macquarie property, valued at about $400,000 to her husband from whom she was separated, and thereafter equal shares to her two sons.

Evidence was brought that the deceased may have been ”psychotic”, or at least ”irrational”, at the time she made the claims about the plaintiff. Legal costs all up were just shy of $100,000.

Geoghegan v Szelid was a case where disproportionate lawyers’ costs had a starring role in a family provisions dispute. Sandra Szelid, who died in September 2010, left her small estate to her two children, but this was contested by her former husband. In contention was a home unit in Darlinghurst valued at about $300,000 and cash deposits of about $340.

After costs and expenses of sale, together with funeral expenses and other costs of the estate, we are talking of a remaining value of about $200,000. The former husband managed to show he was entitled to an amount of $30,000. However, the costs and disbursements of the lawyers ran to about $115,000.

Hallen hastened to add these costs were not unreasonable, only they were ”entirely out of proportion to the nature of the proceedings and the gross value of the estate”. The briefing of senior counsel in an estate that size ”was simply unnecessary and extravagant”.

A recent publication from the Australian Institute of Judicial Administration is entitled, ”Bleak House Revisited? Disproportionality in Family Provision Estate Litigation in NSW and Victoria”.

It seems to show that judges would like to find ways to extinguish the arrangement that exists in some situations where legal costs are ordered against the estate, even when the challenge to the will fails.

In 2009, Justice George Palmer of the New South Wales Supreme Court said in a case: ”That approach to family provision litigation, in effect, threw the whole burden of costs on to the beneficiaries of the estate. It promoted much wasteful litigation.”

This over-eagerness for litigation by would-be beneficiaries is also fuelled by ”no win, no fee” speculators, who encourage people to mistakenly believe they carry little personal risk if they mount a challenge.

Deciding challenges to wills is only part of the judicial task.

There are cases where there are a multiplicity of wills and painstaking work is needed to determine which one is valid.

There are complicated family branches, with brothers, sisters, half-brothers and half-sisters, making it more difficult to determine which nieces and nephews are supposed to be included.

The most fun is to be had when a mystery mistress pops out of the woodwork – to the surprise of the children of the deceased, who thought the fruits of their father’s life labours were theirs and theirs alone to feast upon.

Desperate father asks court to prevent abortion

pregnant-in-court-injuction-abortionA MAN has failed to win an injunction to stop his pregnant teenage ex-girlfriend from having an abortion.

The man, who cannot be named, had asked the Family Court of Australia to direct the 16-year-old girl to inform him when she went into labour and for him to be given full responsibility for the child once it was born.

The father also sought to have his ex-girlfriend stopped from leaving Queensland while pregnant, permission to attend the hospital when his child was born and notification of all medical tests on the baby.

Court orders were filed against the girl, who admitted she was 13 weeks pregnant after the pair separated in January. The teenager told Justice Peter Murphy she was pregnant but had no intention of terminating the pregnancy.

The girl already has a nine-month-old child from an earlier relationship.

A Men’s Domestic Violence Court Advocacy Service

A Men’s Domestic Violence Court Advocacy ServiceMario Licha ( Barrister at Law) is setting up a new AVO advice service for Australian men.

Mario Licha is a New South Wales Barrister who practises out of Ada Evans Chambers in Sydney, New South Wales. This Sydney Barrister practises in the areas of Criminal and Family Law.

Mario brings a different perspective to the bar having worked as a Registered Nurse for 16 years in which 5 years were spent working at Long Bay jail.  Mario uses his knowledge and experience in dealing with clients, opposing Counsel and the Bench.

On 17 April 2012 Mario Licha will be giving a talk about AVOs.

Michael Michalak, Student-at-Law assistant will also be giving a small talk about how he became interested and involved law. Michael has prior experience as a self represented litigant in the Family Court.

The location of this talk is: Talk to Men at Men construction zone (Men & Court) Inspire Church, Corner Hoxton Park Road & Illaroo Road Hoxton Park NSW 2171.

Another event is on 26 April 2012 – this will be the next meeting of A Men’s Domestic Violence Court Advocacy Service  at the Fairfield address. Time of meeting is 19:30 hrs till 21:00 hrs.

The address of this service is:  ’Inspire Community Fairfield Corner Delamere & Sackville Street Fairfield NSW 2165

Registration is essential for both events. It is free to gain entry but donations are always welcome.

Please send an email to the following email address if you are interested in attending: info@guiltynotguilty.com.au

Michael Richard Michalak  JP

Student-at-Law assistant to Mario Licha Barrister-at-LawAda Evans Chambers.