[ad_1]
On the morning of Women’s Day, March 8, Statistics Norway published the latest figures for marriage and divorce in Norway in 2020.
With strict crown measurements for much of the year, it is perhaps not a huge surprise that the number of marriages fell to a minimum. During the past year, 16,151 marriages were contracted, 3,704 less than in 2019.
– The last time there were so few marriages in the course of a year, there were 2,771,000 people living in the country, that is, just over half the population in 2020, says Ane Margrete Tømmerås at Statistics Norway.
The number of separations and divorces was more stable, but also decreased until 2020. During the past year, there were 9,355 divorces and 10,115 separations, compared to 9,609 divorces and 10,422 separations in 2019.
Storebrand Retail Savings Director Mari Rindal Øyen cautions that a marital breakdown can have significant financial consequences, whether you are married or in a relationship.
– Many do not take this into account until they have come a long way in the process. Be aware of difficulties in distributing value as soon as possible, preferably before the infringement becomes a reality. Then both of you are doing a favor, Øyen says.
– Most important of all
The savings expert says that it is always expensive when a relationship ends and you go from two to one.
– First, you will get significantly higher expenses for a mortgage if you want to maintain a near-equal standard of housing. Plus, you get higher transportation, electricity and insurance costs, Øyen says, continuing:
On top of all this, there are one-time expenses like broker, lawyer, moving, and furniture. Therefore, it is essential that you do not rush when distributing values.
When you are in a relationship and think that you will live together for the rest of your life, it can be easy to forget that pension savings are personal and basically should not be shared.
– The payment of the debt, on the other hand, benefits the community. If you have a long-term relationship behind you, such priorities can have a lot to say about the kind of retirement life you face after the breakup, Øyen says.
The transition can be difficult when you are alone and on a budget cut in half to cover almost the same living expenses. Many people may see the home as the investment that will secure your finances as a pensioner, but don’t think that it can be more expensive to move to a more central apartment.
– The most important thing of all is not to get into a situation where you pay rent to your spouse or partner. Buy the house if you have the opportunity; Otherwise, you may risk getting out of the relationship on bare ground, Øyen cautions.
Be prepared for breaks
If one party pays more on the mortgage than the other, it is important to remember that the equity in the home is in any case evenly distributed in the event of default, regardless of who paid the most on the loan. .
– In principle, everyone should be prepared for a breakup that is coming one day, even if it is terribly unromantic. If the relationship ends, it’s too late to get angry that the other is wasting your money irrationally, Øyen says.
If you are in a relationship where you find that you are completely dependent on the other party financially, you need to take action.
– Examine whether you want to manage yourself with your own pension. If the answer is no, you must create your own savings.
The island warns against another classic pitfall in a gap, namely that one spends all his money on consumption, while the other saves.
More than 100,000 affected in recent years: – Risks of economic losses
– This will be difficult to take into account in the distribution of values. Actively participate in the total economy of the couple or continue with who is responsible for the long-term savings.
Team
The number of marriages has decreased for several years, and today it is very common to live together without being married. The island believes that many may be surprised when values are shared after a break.
– Single partners have a greater risk of leaving the relationship with nothing, unless they have entered into a cohabitation contract. You cannot demand that funds saved along the way be shared.
In an intertwined couple economy, it can eventually become nearly impossible to objectively distinguish between what is mine and what is yours.
– Married people must share to a greater extent everything equally, both the house and the funds that have been saved along the way. Being at home with the kids can also be as much emphasized as income-generating work. What happens after the divorce is another matter, says Øyen.
Although the Marriage Law states that everything must be shared equally, there are exceptions. The skewed division rule allows money that clearly dates back to the time before the marriage will not be divided. However, the burden of proof is on the party who believes they are entitled to more money and the requirements are strict.
– Remember that it is much easier to make agreements in times of peace, although it can be uncomfortable to talk about a coexistence agreement or a marriage agreement. Make an agreement on home ownership and debt liability. It can be difficult to come to terms later, when you may want to see things differently.
This must be indicated in a cohabitation contract:
The coexistence contract consists of making visible the values of the parties, the property interests and the shares of the debt.
List who the owner is:
- accommodation
- Holiday House
- Car, boat, etc.
- Ownership of family businesses and / or investment companies
- Other common shares, VPS and bank accounts
- Debt
Enter how the assets acquired along the way will be distributed, whether they will be co-owners or not.
Decide how the joint home and joint assets will be distributed in the event of default.
Establish a time perspective on when the settlement and relocation will take place. Feel free to set up some “rules of the road” as well when the cohabitation is over.
After the break
It is easier to decide on any skewed distribution before than after a pause. If one works part-time to be with the children, one solution may be to create pension savings in the other’s name.
– However, if you create a savings fund without having discussed it, it is not always so clear if it is a common property or separate in the case of a distribution of values later, says Øyen.
Once the violation has occurred, the savings expert encourages you to try to resolve the talking points. If you can keep the discussion about the distribution of values separate from what concerns emotions and bonding with children, it will be easier to find solutions.
– Broadly speaking, it is about finding out which values are going to be distributed and which ones are not. If you can do this on your own, without legal assistance, it will be cheaper. The higher the level of conflict, the higher the legal costs. At the same time, it’s best to contact a lawyer early if it’s clear there will be a conflict around an issue, Øyen says.
Can you avoid skewed distribution? Make the process easier. At the same time, you shouldn’t give in to everything just to get it done ASAP.
– In some cases, there is a good reason why the securities should be distributed unevenly, for example, if one of the parties has inherited, gifted or has other funds before the marriage. If you do not agree on your own, this must be documented.
The value of the house
In the event of a breakdown, figuring out what will happen to the house is one of the most important things. In some cases, there may be strong reasons why one should continue living, but usually one cannot demand to take over the house.
– In any case, you must find out how the value of the home will be determined, through an appraisal or market price. Feel free to receive offers from several different brokers.
The island encourages those entering a new financial life to set a budget as soon as possible.
If you are married and one of the parties is at an unjustified disadvantage with a view to retirement, this can be taken into account in the probate settlement.
– If, for example, one has saved a pension at the expense of funds for joint ownership, the other may demand compensation for it.
