One of these relates to money. Given you’re likely to have many other issues to consider, it’s important to focus on finances as early as possible. The sooner you sort out your financial situation, the easier it will be to adjust to your new circumstances.
Studies have shown that women can often experience greater financial pressures than men after a relationship breakdown.
There are many reasons why women are more likely to suffer financial pressures. This can sometimes happen because women work part-time to accommodate family responsibilities. If less money is coming in, this can lead to women having less in superannuation. So it helps to make sure you’re prepared so you can look forward to your retirement.
When you separate from your partner you need to be prepared for an increase in costs and expenses. Keep in mind that these costs are only indicative and your actual costs may be higher or lower than those provided.
After a separation or divorce it’s important to get your finances fully sorted to help ensure your future is looked after. To some this may seem daunting, particularly if you weren’t responsible for managing the family finances. But you can do it, and taking care of your finances will help you feel more independent and confident about the future.
By taking care of the aspects below as soon as possible, it may make the property settlement easier and more favourable.
Freeze joint accounts
Talk to a solicitor about whether you should freeze joint accounts or cancel any jointly held credit cards.
Gather together all of your financial information
The financial information you should collect includes details of bank accounts, credit cards, superannuation funds, any investments, recent tax returns and your mortgage.
Take care of living arrangements
If you were renting it’s a good idea to get the rental agreement changed. If you were living in a home that you owned either jointly or separately, you should seek legal advice as soon as possible.
Create a new budget
This will help you work out how much you will have for things like rent, food, bills, clothes, petrol, savings, etc. If you’re not used to managing a budget, start by keeping copies of all your receipts and regular bills for a month or two.
Open your own bank account
You should consider opening a savings account in your own name and organise for your wage, or any other income, to be paid into this account.
You may also want to review the need for a credit card. If you’re worried about spending too much, a debit card might be more suitable.
To make sure that you can continue meeting your financial responsibilities and help secure your overall financial position, in the medium to long-term you should also consider doing the following:
Organise your will
When you separate, or divorce, from your partner it’s a good time to update your will so that it reflects the changes in your life.
Take out insurance
It is also a good time to think about insurance, including car, home and contents and life insurance. Life insurance is especially important if you have children. You should review any beneficiary nominations for your existing insurance policies.
Get your superannuation sorted
You may want to look into splitting your partner’s superannuation interests as part of your property settlement. You may also want to review any existing beneficiary nominations to ensure they reflect your new circumstances.