Separation and Finances

Understanding the connection between separation and finances is important for avoiding money-related headaches. Here are some important financial actions and reminders to consider when separating or ending a relationship where there is no safety risk*.

*If you are fearful of your partner or there has been family and domestic violence, you can speak to Safe Steps or your local Orange Door for advice on staying safe, before addressing your financial situation. You can also speak to a free and confidential financial counsellor for advice on managing your money before or after separation.

What Issues Come From Separation and Finances?

In this section, we will outline the financial pitfalls to look out for in the separation process, as well as the steps you can take to avoid them.

Banking Issues

If you share a bank account with your partner, we suggest you do the following to ensure that your income remains unaffected:

• Set up a separate bank account for your income to go into.
• Close any joint bank accounts (if safe to do so).
• Change any loan accounts to ‘both to sign jointly’ status.
• Cancel additional card holders on credit card accounts in your name (if safe to do so).

Property Issues

If you share property with your partner, it is important to enact the following steps:

• Update any rental lease to reflect the correct tenancy details of the person remaining in the rental property.
• Seek legal advice as soon as possible to separate joint property or to determine ownership and the right to sell. See legal options below.
• Continue to pay insurance cover on your home during property settlement.
• Speak to your local Council if you need hardship assistance on your council rates until property settlement is finalised.

Child Support

Your child is an important consideration when it comes to separation and finances. We strongly recommend that you:

• Discuss child support and access arrangements with your ex-partner to ensure parenting responsibilities are maintained. Also seek information from Centrelink and the Child Support Agency about the amount of child support required, access arrangements and any impact on Centrelink benefits.

Important Documents for Separation and Finances

You should also consider reviewing and updating the following important documents:

• Your Will.
• Superannuation beneficiary details.
• Life Insurance beneficiary details.
• Power of Attorney.

What Are My Legal Options Regarding Separation and Finances?

If you're ready to discuss your financial situation, you can find the help you need with the following resources:

• The Law Institute of Victoria – search for a family lawyer in your area, you may be entitled to a free 30-minute consultation.

Are There More Affordable Legal Options Available?

Yes! If you require financial assistance, you can consult the following:

• Relationships Australia
• Victoria Legal Aid
• Women’s Legal Service
• WIRE Legal Advice Service
• Wallumatta Legal – low fee, not-for-profit family law firm

How Can Better Place Australia Help?

Better Place Australia Free Financial Counselling and Mediation Services are available to people who have money troubles and live in one of the many government funded areas across Victoria. The first step is to enquire online or request an appointment.

You can also read real stories about people with financial troubles and how Better Place Australia financial counsellors mediated for them.