Divorce – The Checklist to Success

Divorce or financial separation will be one of the most stressful and financially challenging periods of a couple’s life, and although things may seem calm and agreeable at the start, the reality of the split starts to solidify and the finer arrangements are discussed, emotions can often blur rational discussions in finding a fair outcome. 

This is where a trusted financial adviser can be an asset who will step in and assist in collating and assessing the financial assets and debts, whilst also considering the multiple other factors that are part of the complex division of two people’s lives. 

A Financial Adviser can navigate the following areas to transition a client through the rocky waters into the post-settlement stage ensuring they have a good foundation to be able to rebuild. 

Here is how an adviser can assist: 

Asset & Debt Division 

• Help identify and evaluate all marital assets and liabilities including real estate, investments, superannuation accounts, and debts. Additionally, we also assist in ensuring a fair and equitable division of assets and debts, as we have good knowledge of how these are usually assessed in a variety of different situations. We can work with your Family lawyer to ensure a fair outcome. 

  
  

Cashflow & Budgeting 

• Help create a realistic budget, considering changes in income, living expenses, eligible family tax benefits, child support and financial obligations to help clients maintain financial stability. 

• Note that banks may lock joint accounts during a dispute or if there is unapproved activity on an account. 

  
  

Superannuation Splitting 

• Reviewing the split of superannuation, ensuring compliance with the superannuation laws and help reassess retirement plans and goals to ensure continued financial security in retirement. 

  
  

Tax Position 

• The tax implications of asset division such as the timing of the sale of assets (does the separation need to be positioned across two financial years). 

• Working with your accountant to wind up any businesses or entities, assess any business or UPE loans and clear all business-related debts. 

• Ensure the transfer of titles of properties is implemented and debt is managed or discharged. 

• Changes to spousal status when lodging Income Tax Returns. 

  
  

Insurance Needs 

• Reviewing existing insurance policies: life, TPD, critical illness, income protection and business expense cover to ensure adequate coverage post-divorce/separation as well as update any beneficiaries (We often find clients have their ex-spouse listed as the beneficiary on super and insurance policies years after divorce). 

  
  

The Rebuilding Process 

• Advisers help clients reassess and redefine their financial goals and objectives with their new circumstances. 

• Financial advisers will collaborate with other professionals, such as family lawyers, mediators, accountants and therapists, to provide a comprehensive support network. 

• They offer emotional support and reassurance, helping clients navigate the financial complexities of divorce to rebuild with confidence.