Divorce and relationship breakdowns are major life milestones that many of us will have to endure, with the Australian Institute of Family Studies revealing that 41% of marriages end in divorce within nine years.
One of the most frightening outcomes of divorce is the fracturing of family finances.
But rebuilding your finances after divorce is possible as you embark upon a new life.
This article focuses on steps you can take to overcome the financial consequences of divorce to secure a bright future for you and your family.
First steps for financial separation
The end of a significant relationship is difficult, but there are steps you can take immediately to make financial separation easier.
MoneySmart.gov.au has prepared a divorce and financial separation checklist that you can work through online.
The most crucial steps include:
- Organising your bills and finances
- Updating your accounts, will and superannuation
- Seeking legal and financial advice
- Dividing property and assets
- Dividing income and expenses
- Deciding on the care of children, if necessary
- Domestic violence and financial abuse support.
The value of good financial advice
It is imperative to have people you can trust to rally around you during a divorce, including family, friends and trusted professionals.
At First Financial, we understand that divorce and separation are emotional roller coasters, but it is a particularly important time to seek advice and ensure you have a sound financial plan for your future.
Divorce directly impacts things like superannuation and assets, and many people struggle to decide what to do with lump sum divorce settlements during a period when they are grieving for their old life and circumstances.
Our team of professionals can assist you to create a path to wealth that may look different to your financial situation when you were partnered but will ensure you have a feeling of safety and comfort for your financial future.
If you’re in the process of financial separation, contact one of our financial advisers to formulate a plan for your future.
Take control of things you can control
Divorce can make you feel as if everything is out of your control, but rather than allowing the overhwhelming nature of the divorce process to sidetrack you, consider the things that are still in your control and grab them with both hands.
These include…
Your income and your spending
Ensuring you are able to maintain or build your income during and after a divorce is paramount to your future financial success.
If you are employed, discuss with your employer a plan for salary increase increments and, if possible, ways you can take on extra work if possible.
If you are looking for work, connect with recruitment partners to find the right job to suit your personal circumstances as a matter of priority.
Depending on your new living situation, your costs of living should be fairly set, so take stock of the costs associated with maintaining your standard of living and consider where you can cut back on spending that you may have been laxer with while partnered.
Your financial records and your financial plans and goals
Ensure you obtain access to all financial records and information that pertain to the period of your relationship.
If the other party is hostile in providing you with records you have previously not had access to, discuss with your legal representative how to obtain this information.
Ensure you keep meticulous records of your finances from this point forward.
Provide your financial adviser with all of your collated financial information when it comes time to plan for your financial future.
Things may be a bit topsy turvy in the throes of your divorce proceedings, but there is hope for the future.
Spend some time making plans and setting goals for your future finances, post divorce.
Always wanted to invest in something your previous partner wasn’t keen on pursuing?
Now is your time to make those dreams a reality.
Ask your financial adviser for guidance on how to make plans for your financial future post divorce.
Trusted boutique financial advice
Our financial advisers have a wealth of experience assisting clients to navigate financial life milestones – including the financial implications of divorce and how to overcome them.
Our talented team of financial advisers partner with you… helping you to make smart decisions with your money so you can build wealth, reach your financial goals and retire your way.
There is life after divorce, and you can achieve your financial goals with some planning and preparation.
Ask us how to secure your financial future today.
