Divorce or the breaking up of any de-facto relationship is never an easy thing to deal with. While you're still reeling from the emotional shock of the change, you realise that you need to face some sensitive practical matters.

Some of these matters include some difficult financial concerns. You need the advice of a qualified and experienced professional to help you make wise decisions, at this time.

Why Is Financial Advice Important?

You may need to make compromises in things such as the model of car you drive or the housekeeping services you hire. If you can't let go of some luxuries, then you should be prepared to afford them.

There are other more subtle financial issues in a property settlement, such as Capital Gains Tax and stamp duty. A financial planner will consider these and will use cash flow modelling to give you an idea of what to expect.

Your adviser will then work with your lawyer to maximise your settlement proceedings.

Review Your Insurance Arrangements

Separation or divorce will naturally result in changes to your obligations and expenses. Insurance is an invaluable financial resource. It is your lifeline in the event that the unthinkable happens and you need to reevaluate your financial situation.

A financial adviser should review your insurance in the light of a change in circumstances to make sure that it still meets your needs.

Tips to Get You Started

In the wake of a divorce, it can be overwhelming to sort out your priorities. Here is a basic checklist of what you can do to get the recovery process underway:

• Banking - Open an account in your own name and have your pay and/or Centrelink benefits paid into it.
• Mortgages - Work out a plan to cover repayments during settlement. Consider cancelling redraw facilities or ensure joint signatures are required.
• Bills - If staying in the home, put all utility bills (power, gas, phone, internet etc.) in your name only. If moving out, take your name off all bills.
• Child Support & Government Payments - Talk to the Department of Human Services to see what benefits you are entitled to.
• Assets and Liabilities - Make a list of all your assets including super and any money you owe (include jointly- and individually-owned).
• Kids - Consider care arrangements and advise their school of your separation.

What next?

At Calder Wealth Management, our specialist team of financial advisers will help you to avoid a financial burden. Contact us or call 08 8373 3333 to arrange a free, no obligation appointment.

Written by, Ben Calder, Private Client Adviser at Calder Wealth Management.