Going through a financial separation can be a challenging and emotional journey.
Whether you’re divorcing your spouse or ending a long-term partnership, it’s essential to navigate this process with knowledge and support. At Div-ide, we understand the complexities and sensitivities involved in financial separation, and we’re here to help you through it. In this blog, we’ll discuss five crucial things you should know about financial separation and how Div-ide’s unique approach can make a significant difference in your experience.
1. How Financial Separation Works with Separation and Divorce
Financial separation can also be described as financial settlement or property settlement.It involves seeking approval from the Federal Circuit and Family Court of Australia or entering into a binding financial agreement.
A complete financial separation is highly recommended, as it finalises both your financial arrangements. It means that one party can then not seek funds from the other party in the future, providing clarity and certainty for you both. It’s important to note that, if you cannot complete this step within 12 months of divorce or within two years of separation for de facto couples, you run the risk of future claims.
The financial separation will give you the legal finality that many people seek when they separate in order to move forward with their lives. This also allow assets to be moved between you both in a tax-effective manner. This also applies to superannuation.
2. Navigating Conflict to Achieve Better Outcomes for you Both
It is an unfortunate fact that many separations involve conflict. And while we know how difficult it can be to put aside personal differences, it will cost you less and leave you more assets to split, if you can. Having a common goal of financially separating amicably and efficiently can deliver the best results for you both.
If, however, you are experiencing conflicts such as domestic violence, child custody, parenting arrangements, or hidden assets, you may have fewer options in terms of financial separation. In this instance, you should both seek legal advice.
At Div-ide, we specialise in helping separated couples with their financial separation when both parties are prepared to work with us and each other.
3. Choosing the Right Professionals: Financial Separation may not Always Need Legal Advice
Engaging the right professional is the first step in the financial separation process, so it’s important that you know your options. This means choosing the right professional. This is particularly the case when you’re dealing with financial matters, which can at times be complex.
What surprises many of our clients is that they may not need to engage a lawyer to work through the financial side of their separation. The team at Div-ide are Chartered Accountants with a special interest and expertise in financial separation. We have helped many separated Australian couples through their financial separation, achieving outcomes that work for them both.
Achieving the best outcomes for your financial future, as individuals, means you both need to work with us. If you’re able to do that, and both agree that this is the path for you,
Div-ide can help you. In our experience, you get the best results when you’re able to put personal differences aside and focus on achieving a secure financial future for yourself.
For more information, please see https://www.div-ide.com.au/financial-separation-services/
4. Collating What you own and What you owe
Once you’ve engaged your preferred professional adviser, the process generally begins within a comprehensive inventory of what you own and what you owe.
You’ll need to separately identify and quantify each asset and liability. You’ll then both need to decide what will happen with those assets and liabilities to achieve a just and equitable outcome. Some assets may need to be sold, while some loans may need to be refinanced with one party. Tax implications must also be taken into account.
It’s important to be aware that each financial settlement is unique to your circumstances.
For more information, please see https://www.div-ide.com.au/financial-separation-services/
5. Financial Settlements are not Just about the Numbers
There are many steps outside of simply splitting what you own and what you owe. There are practical things that you can do to assist with your financial separation. We understand it can be difficult to think practically during this challenging time.
Some additional things to consider are:
- You may need to get some of your assets, for example, properties or businesses, valued.
- You may need assistance splitting your superannuation, which can be tricky.
- You may need to determine your borrowing capacity under your new circumstances before agreeing to take on a property with a mortgage, and
- You may need to update your estate planning.
At Div-ide we provide you with this practical advice to ensure you have the right support to navigate through the issues that are relevant to you.
We can help support you through your financial separation by providing expertise, advice, and care, without judgment, which may just help ease your burden. Because we’re a service driven by people rather than technology, we understand the feelings of anger, sadness, and confusion that can make financial separation more difficult. Our people recognise the emotional aspect of this journey and offer empathetic guidance to help you stay on track.
The Div-ide Difference
What sets Div-ide apart from other financial separation services is our commitment to professional, personalised, and empathetic support. We understand that no two separations are the same, and we tailor our approach to your unique circumstances. Our team of experts is not only knowledgeable but also compassionate, providing you with the emotional support you need during this challenging time.
Financial separation can be a daunting and emotionally charged process, but with the right guidance and support, you can navigate it successfully. Div-ide is here to help you through every step of the journey, from understanding the financial framework to comprehensive asset assessment, debt management, and addressing tax implications. Our commitment to empathy and personalised service, the Div-ide Difference ensures that you’ll receive the support and guidance you need during this challenging time.
Remember, you don’t have to go through financial separation alone. Div-ide is here to assist you in making informed decisions and achieving a fair and equitable resolution.
