How to handle your finances if you’re going through a divorce

Ending a relationship can be difficult, both emotionally and financially.

If you do split from your partner, it’s a good idea to seek professional advice from trusted financial advisers, so that they can help protect you financially.

Here are our tips for handling your finances if you’re going through a divorce.

Review your accounts and home loan

Once a relationship comes to an end, it’s important to establish your financial autonomy.

Close off your joint accounts and credit cards, and make sure your income is paid into a personal account.

Consider changing your PIN and online banking details, if necessary.

If you have a home loan, be sure to inform your lender about the separation and to cancel any redraw facilities.

Do a financial stocktake

Having your finger on the pulse will make the property settlement process easier.

Make a list of all your assets, debts and joint debts. Don’t forget to include your superannuation, as once you separate or get divorced, your super may be divided by agreement or by court order.

Document the separation

It’s important to record the dates of your separation in a diary. This will come in handy when you have to verify you’ve been separated for at least 12 months.

Update your providers and will

Make sure you inform your landlord (if you’re renting) and utility providers (electricity, gas, mobile and internet) of your changed relationship status, as whoever’s name is on the paperwork is the one who is liable should payments be missed.

Update your insurance policies, including car, home and contents, and income and life protection insurance, so they reflect your interests, and change your will if necessary.

Seek legal advice

Seeking legal advice is a smart idea, even if you’re on good terms with your ex-partner.

If your home is in your ex-partner’s name, your lawyer may advise you to lodge a caveat – a legal notice that shows your interest in the property and prohibits its sale without your consent.

Tips for adjusting to income change

Having a budget is key to managing your finances after a divorce, and will help you keep track of your income and expenses.

Be frugal until the divorce dust settles and create a game plan for your financial future.

Seek advice

If you’re going through a divorce, we can offer professional financial advice to help protect you and your assets.

To find out more, please get in touch with LDB by phoning (03) 9875 2900 or filling in the contact form below.