The end of a relationship can be a very emotional and stressful time. However it is important to keep a level head when dealing with your shared money arrangements following a separation.
We recommend you take the following steps to reorganise your finances:
- Close any joint accounts as soon as possible and open your own account. Make sure you direct your salary and any other income into your own individual account. Deal with any direct debits that were coming out of the joint account.
- If you have any joint credit cards, close the accounts immediately or contact your financial institution to put a stop to any further transactions. This can prevent your partner from incurring any further debts which you will be responsible for.
- List everything you own individually and together with your partner. Include superannuation, trust accounts, shares etc.
- Note down the date of your separation. To apply for a Divorce you will need to prove you have been separated for at least 12 months.
- If your name is on a Lease with your partner, make sure you update the Lease. As long as your name remains on the Lease then you could be liable for any unpaid rent or damage caused by your partner.
- Review your insurance needs.
- Prepare a budget because your income may be reduced following separation and you will need to adapt to your change in circumstances.
- update your will;
- separate property held in joint names;
- freeze any joint accounts;
- take action to prevent your partner from selling any property that may be held in their sole name;
- prepare Consent Orders or a Binding Financial Agreement to formalise any property settlement you may have agreed upon.