Navigating financial divorce or separation
Navigating the financial complexities of divorce or separation can be challenging, but a trusted financial adviser can help ensure an equitable division of assets, manage cash flow, and reassess long-term financial goals.
Financial divorce or separation is one of the most emotionally difficult life transitions a person may face. While some separations begin amicably, tensions often rise as the reality of dividing shared lives sets in. When emotions run high, reaching an equitable financial outcome becomes harder – and that’s where professional guidance is essential.
A trusted financial adviser can be an invaluable resource during financial divorce, helping to assess the complete financial picture, anticipate tax or structural issues, and support future planning with objectivity and experience.
Below are key ways a licensed financial adviser can assist during a separation:
1. Asset and debt division
A financial adviser helps identify and assess the full range of shared financial assets and liabilities – including property, investments, superannuation, and debts. With deep understanding of how assets are typically treated in financial divorce, advisers can also work alongside your family lawyer to help structure a fair outcome.
2. Cashflow and budgeting
Advisers assist with creating both pre- and post-separation budgets, considering reduced income, living costs, government benefits, and child support. This helps maintain financial stability and reduce surprises.
Tip: Be aware that some banks may freeze joint accounts during disputes or upon detecting unauthorised activity.
3. Superannuation splitting
Dividing superannuation is often overlooked, but it can have major long-term consequences. Advisers ensure super splitting complies with legal requirements and aligns with retirement goals.
4. Tax position
There are several tax-related elements to navigate in a financial divorce:
Timing of asset sales (potentially across financial years)
Business wind-ups and dealing with unpaid entitlements or loans
Debt management and property title transfers
Spousal status changes affecting tax returns
An adviser can collaborate with your accountant to make sure these elements are handled correctly and efficiently.
5. Insurance needs
It’s common for people to forget to update their insurance and superannuation beneficiaries after separation. Your adviser will review cover across:
Life insurance
Total and permanent disability (TPD)
Trauma/critical illness
Income protection
Business expense insurance
Updating beneficiaries and ensuring appropriate cover for your new circumstances is critical.
6. The rebuilding process: Redefining goals
Separation marks the start of a new chapter – and your financial goals may need to shift accordingly. A financial adviser can help:
Rebuild your financial foundations
Set new, realistic goals
Adjust investment or savings strategies
Advisers also work in partnership with family lawyers, mediators, accountants and even therapists to provide holistic support. It’s not just about spreadsheets – it’s about helping you move forward with confidence.
A financial divorce can be overwhelming, but you don’t have to navigate it alone. With the right support network – and a clear financial strategy – you can emerge with clarity, stability, and a renewed sense of direction. Learn more about how we can support you navigate divorce here.
This general advice has been prepared without taking into account your objectives, financial situation or needs. Therefore, you should consider the appropriateness of the advice in light of your own objectives, financial situation or needs, before acting on it. You should also obtain a Product Disclosure Statement (PDS) relating to the product and consider the PDS before making any decision about whether to acquire the product.
