Separating from your partner or spouse is hard! It is emotionally taxing and completely changes the direction you thought your life was travelling towards. And suddenly? You are responsible for everything, including your financial future, which can be very overwhelming, to say the least.
For example, if your Ex used to do most of the housework and cooking – then you may be suddenly finding yourself with a lot of extra household chores to complete that you haven’t had to think about in years. Or if your Ex used to take care of the finances and money… then you have got to step up and take the reins in figuring out your new financial future.
We see so many people come to us, who have been married or with their partner for years, and have trusted their partner to handle all of the financial decisions. They come to us embarrassed because they don’t know what assets they hold, if their property has a mortgage, or how many bank accounts may be in their own name or of their Ex’s. But you know what? This is not at all unusual, and quite frankly has become quite normal. There is no reason to feel uncomfortable or self-conscious when it comes to managing your financial future.
It’s normal to go into your relationship planning to be spending the rest of their lives with this person, so it’s not unusual to divide household duties and sometimes assume traditional roles in the relationship with one person being the breadwinner and taking care of the finances and the other looking after the home and the children. There is nothing wrong with this – and it works for as long as you are together with your partner. It is when you separate from your partner that this becomes more difficult to manage.
Trying to figure out how to get back on your feet financially after separation can be challenging. How do you figure out what you have and what you owe? How do you know what you spend and what your income will be? How do you start making your own financial decisions if it hasn’t been your normal routine for some time?
We’re here to help and have shared a few tips below to get you started on the right foot of your new journey and begin to feel more secure in your financial future.
If you are unsure about your financial situation, the first step is to gather as many financial documents you can find in relation to your situation.
This can include, bank accounts, credit card statements, superannuation statements, tax returns, mortgage documents… The list is endless! Having these documents available to you will start to get you on track to understanding your finances, what you have, what you owe, and what is available in your property pool.
After gathering relevant documents, from here, you may be able to start to compile a list of assets, liabilities and financial resources. If you feel overwhelmed, remember this is only the start – property pools can be complex and you will likely require assistance from a professional before being able to have a complete picture of your property pool.
Figuring out what income you will have available to you moving forward after separation is important. When trying to ascertain this, have a think about all sources of income you might have available. This includes income from your work, any Centrelink payments you may be eligible for, and any child support you may be able to receive from your Ex if they were the primary breadwinner.
After separation, it’s often a good idea to put everything together and make a budget. This can include your current income and expenses that you know you will have to pay. Be detailed and realistic.
It is important to be informed in order to make empowered decisions for your financial future after separation. Some areas that may be good to look into at this point may be, for example, what sort of rental property and other costs you may need to pay if you have to move out of your shared property. Or, if you are not currently working, then you may wish to consider what employment you may be able to gain and do some research about job availability to see whether this is a realistic opportunity for you.
Navigating your financial future after separating may seem like an impossible, even daunting, task, and we appreciate that the above is only a tiny scratch on the surface of the steps you will likely need to take.
We know how hard this first step of getting started can be – and we are here to help you in any way possible, from support to legal advice
Need help to get started in the right direction and get answers to the pressing questions you may have about steps to take and how to move forward?
Book your free 30-minute CLARITY CALL.
***Disclaimer***
This article is for general information purposes only and does not constitute legal advice or any other professional advice.
We are here to guide you out of the uncertainty of separation to financial certainty and freedom, to clear arrangements for your children and to the power and confidence you need to rebuild your life.
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