Unfortunately, sometimes, adults find themselves going through a separation. This can take a toll emotionally and financially. Below is a guide to help you traverse this process with more clarity and, hopefully, less stress.
Try to be amicable and transparent
If you can keep your separation amicable with your former partner and try to keep emotions out of the decision-making process. It is usually the best way of achieving a mutually suitable outcome from the settlement. It will also make the transition period for your children more pleasant and can stop resentment from occurring.
Another advantage is that it will reduce your legal costs and the stress of going through drawn-out court battles. Being transparent with your financial position is essential to comply with the duty of disclosure requirements and can make certain issues come to light earlier so they can be addressed.
It comes down to the choice of using the legal system to pick issues to fight over rather than emotional responses that may cost you more in the long term.
If bills go unpaid, even accidentally, they can lead to negative reporting on your credit score.
Changing bills
If bills go unpaid, even accidentally, they can lead to negative reporting on your credit score. A good strategy is to go through your bank statements and determine what bills you have. Then, you can work through who will take over which bills, so none get missed.
Changing bills
If bills go unpaid, even accidentally, they can lead to negative reporting on your credit score. A good strategy is to go through your bank statements and determine what bills you have. Then, you can work through who will take over which bills, so none get missed.
Do a budget
Your life may feel upside down while going through a separation, but one way you can regain some control is by doing a budget. A big advantage of having a budget is working out your individual costs and income, which can help determine if you are able to take over the family home on your own or if you need to rent for a while first.
It is another tool to help determine future expenses with your dependents and can be used to work out the custody arrangements and potential child support levels.
Change bank accounts
This process will help you with starting to separate your money. This may involve opening new bank accounts and a credit card in your own name so that you can control your salary and pay your bills. You both may need to maintain a joint bank account for the transition period to cover joint bills until you determine who will be responsible for each expense.
Change Superfund Binding Death Nominations & Wills
I find in my line of work this is always the last area that is addressed. By having the binding death nomination to your ex-partner, you may not be able to direct a significant part of your estate to the people who matter most in your life.
You will also need to see a solicitor to draft a new Will, as you will most likely want to change the beneficiaries from your original Will.
This is where being amicable will come into play the most.
Work out how to share children
This is where being amicable will come into play the most. The divorce is not only hard on you but also your loved ones, and if you fight and use the children as negotiating pawns they will have not only have emotional damage by may resent you for the rest of their life.
Work out how to share children
This is where being amicable will come into play the most. The divorce is not only hard on you but also your loved ones, and if you fight and use the children as negotiating pawns they will have not only have emotional damage by may resent you for the rest of their life.
Get legal advice – Financial Separation Agreement
You will need to get a financial separation agreement (FSA). An FSA is a contract between two spouses, and it sets out how the assets and parenting arrangements will be divided as you end your relationship. They can be used as evidence to prove that the spouses have agreed to separate and can be filed in court to determine the split of assets and custody arrangements.
These agreements are not just limited to married couples but also de-facto couples. You can apply for a divorce without a separation agreement, but you generally have to be separated for a minimum of 12 months; an agreement helps by setting out how the divorce will happen and shows evidence that you are separating.
Family home and debt
When working with separating couples, I find that one spouse usually wants or needs to keep the family home. In these cases, I recommend you work out a draft arrangement with the assets, income support and children and then speak to lender or financial planner to determine if you can service the loan and are able to take over the property yourself.
If you don’t do this, you may have increased lawyer fees in the future by having to change the FSA as you may find you are unable to get the loan to take over the property.
At Green Associates we have a lot of experience in divorces and strategies around re-establishing yourself for the future. If you would like to arrange a confidential meeting, please click here to book or contact us on 1300 815 921.
