Planning

Whether you were the one who decided to separate or not it is important to establish whether you can actually survive financially after separation. Here are some important financial considerations that you should consider.

From a day to day point of view, you need to ensure you have a bank account and if necessary a credit card in your own name (not a supplementary card). Also your own email address and mobile phone (not linked to your spouse).

The household spending for a couple and two children is actually not that much different to that of a household where there is one adult and two children, even where the children spend time with both parents. Do a budget and start thinking about what your priorities are as far as spending is concerned. An understanding of your spending habits is vital when considering your property settlement.

If children are involved you may receive or pay child support payments. If you are to receive such payments, this may help towards your expenses but it is still important to do a budget as circumstances may change - such as job loss for the paying parent. The Child Support Agency has a useful calculator to work out what you may receive/pay. It is important to remember that child support generally only applies to children under the age of 18 so if you have adult children living in your home it is unlikely you will receive any child support payments for them.

Government payments or subsidies may be available.  To be eligible you must satisfy Centrelink’s merit, income and asset tests but with some smart financial planning strategies you can maximise the amounts you do receive.

While considering day to day expenses is important you also need to think about long term planning and in particular setting yourself up for retirement.  Obtaining good financial planning advice goes a long way to financially recovering from separation. Such advice should be obtained prior to finalising your property settlement - so that it can be best structured for long term planning.

You should review your wills, enduring powers of attorney, insurance and your superannuation to ensure you update your beneficiaries.