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Divorce can be tough emotionally and financially. So, what can you do to beat these odds?<\/p>\n
It\u2019s never easy to start over but working through your financial situation soon after your relationship ends may help you plan the next stage of your life and move forward with more confidence.
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Gather financial documents<\/h3>\n
You\u2019ll probably have a lot going on if you\u2019re in the middle of a separation and it can be easy to get paralysed by the change in front of you. One good way to start is to get together all your information resources: This includes things like your:<\/p>\n
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Bank and super statements<\/p>\n<\/li>\n
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Insurance policies<\/p>\n<\/li>\n
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History of your employment and payslips<\/p>\n<\/li>\n
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Any property deeds\/mortgage or investment statements<\/p>\n<\/li>\n
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Will and estate plans<\/p>\n<\/li>\n
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Rental agreements<\/p>\n<\/li>\n
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Personal and business tax returns<\/p>\n<\/li>\n
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Marriage certificate.<\/p>\n<\/li>\n<\/ul>\n
This material will be crucial when it comes to working with a divorce lawyer\/mediator and with a financial planner or accountant.<\/p>\n
Understand your financial situation<\/span><\/h3>\n
Moving to a single income could change your circumstances significantly (bills your spouse used to pay become yours, bills you used to pay become theirs). So, it\u2019s important to have a plan for managing your new financial situation.<\/p>\n
Having a clear picture of what you earn versus what you spend will tell you where you stand. If you find that your income cannot match your expenses, you may need to make some changes.<\/p>\n
Spending<\/em><\/strong><\/p>\n
Start by tracking your spending. There are\u00a0budget planners\u00a0and phone apps you can use. Alternatively, simply download your bank statements and keep a record of your receipts.<\/p>\n
Make sure to include everything from your rent or mortgage, utilities, kids\u2019 education etc, to what you spend on entertainment. You\u2019ll also need to include any debt repayments such as personal loans.<\/p>\n
Income<\/em><\/strong><\/p>\n
Next, calculate your total income. This includes what you earn if you\u2019re employed, any Centrelink benefits if applicable, as well as any child support you may be entitled to post the separation.<\/p>\n
If you own an investment property or managed investment fund, also include any regular income you\u2019re receiving from rent or dividends.
\u00a0<\/p>\nClose joint accounts<\/span><\/h3>\n
As soon as possible, close any joint bank accounts or credit cards and reopen them under your name.<\/p>\n
If your bills are paid under your partner\u2019s name, you\u2019ll also need to update this and any insurance policies you share. Lastly, redirect any of your income that is paid into a shared account to your own.
\u00a0<\/p>\nManage your property and assets<\/span><\/h3>\n
When it comes to dividing up your assets, it can get extremely complicated (and emotional) so you may want to engage a family lawyer to mediate or obtain your own legal advice.<\/p>\n
During this process, you\u2019ll need to work out who gets what: the car, home, furniture. You probably need to divide up your super, investments, and any joint debt.<\/p>\n
Records of your income and any evidence that proves how much you\u2019ve financially contributed to the relationship, will be important. And if there\u2019s children involved, this too will affect how your financial assets are divided.
\u00a0<\/p>\nSeek support<\/span><\/h3>\n
You don\u2019t have to go through a separation alone. There are many online\u00a0Government resources<\/a>\u00a0as well as counsellors and financial advisers that can help to make this process a little less painful.<\/p>\n
Professionals support networks can guide you through the legal requirements and provide advice about dividing assets\/debts, such as a property that is held in both your names. They can also assist you in reviewing and changing your will.<\/p>\n
You may also want to use a\u00a0financial adviser\u00a0as they can support you in planning out your future finances such as your super, housing situation, estate planning and life insurance. Please contact us on |PHONE| if we can be of any assistance .<\/p>\n
Bottom line:<\/span>\u00a0Going through a separation is a highly emotional time so making too many big decisions alone may not be in your best interest. Lean on professional support and focus on building your future\u2014the grass may be a lot greener!<\/p>\n
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1\u00a0Australian Bureau of Statistics: 3310.0 –\u00a0Marriages and Divorces, Australia, 2018 Released 27\/11\/2019
2\u00a0Australian Institute of Family Studies:\u00a0Divorce legacy lingers in older age\u00a0\u2013 26 July 2018<\/span><\/p>\nOther sources:
https:\/\/aifs.gov.au\/media-releases\/financial-effects-divorce-worse-women<\/a>
https:\/\/aifs.gov.au\/media-releases\/divorce-legacy-lingers-older-age<\/a><\/span><\/p>\n\u00a0<\/p>\n