Divorce can significantly affect your finances, including your income, superannuation, investments, insurance, savings goals and retirement plans – but you don’t have to figure it all out on your own.
Whilst many people understand the importance of a lawyer when getting divorced, many don’t understand how valuable a financial planner can be in helping shape the divorce settlement.
Working with a financial planner can help you understand the financial implications of divorce and create a strategy for rebuilding long-term financial security.
How can a financial planner help during a divorce?
- Understanding your divorce settlement options
Looking at the impact of a divorce settlement on your situation, how to make the most of what you have and help with setting new financial goals for yourself.
- Sorting out super
For many Australians, superannuation is one of their largest assets. During a divorce or separation, super may form part of the property settlement. Understanding how superannuation splitting works and how it could affect your retirement savings is an important step in the divorce process.
- Protecting what matters
Post-divorce, a financial planner can help you review your personal insurance. Your circumstances have changed, so it’s likely that your protection needs have changed too. Make sure your insurance provides appropriate cover for you and your loved ones.
- Managing cash flow on a single income
Depending on your situation, managing on a single income could be a big adjustment. A financial planner can help you avoid costly tax pitfalls, identify any government benefits you may be eligible for, and help you review your household budget to make sure you can cover expenses and put some money aside for a rainy day.
- Planning for long-term financial independence
For better or worse, your circumstances have changed so your goals – or the path to achieving them - may change too. A financial planner can help you take stock and create an investment plan matched to your goals so you can build your wealth and set yourself up for the future you want.
Financial checklist after divorce
- Review bank accounts and joint debts
- Update beneficiaries where appropriate
- Review superannuation arrangements
- Reassess insurance cover
- Create a new budget
- Rebuild emergency savings
- Review investment strategies
- Update estate planning documents
- Set new short and long-term financial goals
Take control of your finances with a financial planner
When you’re going through a divorce you need good support systems around you. Talking to a financial planner is like having a specialised coach in your corner – they can help you navigate the financial implications of your divorce settlement and put a plan in place to set you up for a financially stable future.
