Separation Checklist for Australians: What to Do With Your Money

Financial abuse, including having money withheld, being prevented from working, or being pressured to sign documents, is common during and after separation. If any of this applies to you, speaking to a specialist service before taking financial steps can help you do so safely. The National Debt Helpline (1800 007 007) and 1800RESPECT (1800 737 732) both offer free, confidential support.

The date of separation is a legal trigger. For de facto couples, the two-year time limit to apply for a property settlement runs from this date. For married couples, the one-year separation period required before applying for divorce also starts here. A text message, email, or dated note to yourself can serve as evidence if the date is later disputed.

Having your own account ensures your income, Centrelink payments, and any emergency funds are not accessible to your former partner. Set up direct deposit of your pay to this account immediately. If you are worried about access to funds, do this before any joint accounts are discussed.

Once you separate, access to shared documents can become difficult or contested. Collect recent tax returns, payslips, superannuation statements, mortgage statements, loan documents, share or investment account statements, and any business financials. You or your solicitor will need these to establish the asset pool for a property settlement. Store copies somewhere your former partner cannot access.

Shared or known passwords give a former partner access to your financial information, communications with your solicitor, and potentially your funds. Change passwords on email accounts, online banking, superannuation portals, and any accounts linked to a shared device. Enable two-factor authentication where possible.

Services Australia calculates payments such as Family Tax Benefit, JobSeeker, and Parenting Payment based on your relationship status and household income. Failing to update your status can result in overpayments that you will be required to repay, sometimes with interest. Notify Services Australia of your separation as soon as practicable.

If you are married, you have twelve months from the date your divorce becomes final to apply for a property settlement through the court. If you are in a de facto relationship, you have two years from the date of separation. Missing these deadlines means you may need to apply for special leave to proceed, which is not guaranteed. Speak to a solicitor early, even if settlement seems straightforward.

A property settlement divides the total asset pool, which includes assets held individually, jointly, and in some cases in trusts or companies. The pool includes superannuation, property, vehicles, savings, shares, and business interests, as well as debts. Both parties have a legal obligation to provide full financial disclosure. Concealing assets is a serious matter and can result in orders being set aside later.

Transfers of assets between spouses or de facto partners as part of a formal property settlement generally attract a CGT rollover, meaning the CGT liability is deferred rather than triggered at the time of transfer. However, this rollover only applies if the transfer happens under a court order or a binding financial agreement. A verbal or informal agreement does not attract the rollover, and CGT may become payable immediately.

You do not have to go to court to finalise a property settlement. Many couples reach agreement through negotiation or mediation and then formalise it as consent orders (approved by the court without a hearing) or a binding financial agreement (a private contract). Both options require independent legal advice. An informal agreement, even a written one, is not legally enforceable and does not trigger the CGT rollover.

Super is included in the asset pool for a property settlement. You can request a superannuation information form through the court to obtain your former partner's super balance if they will not provide it voluntarily. Knowing both balances is essential before any settlement negotiation, because super is often the largest asset outside the family home.

A super split does not happen automatically when you separate or even when you divorce. To split superannuation, you need either a super splitting order from the court or a superannuation agreement that forms part of a binding financial agreement. The fund trustee must be served with the order before it takes effect. Leaving this step out of a settlement can mean one party walks away with significantly less retirement savings than intended.

A binding nomination tells your super fund who receives your super if you die. Separation does not automatically cancel a nomination in favour of your former partner, and your super does not form part of your estate, so a will does not override it. If your former partner is still nominated and you die before the nomination is changed, they may receive your super regardless of your wishes. Check your fund's rules on how to update it.

A verbal or written agreement between you and your former partner about who will pay the mortgage does not change your legal obligation to the lender. If the person who agrees to pay falls behind, the missed payments appear on both credit files. The only way to remove a name from a mortgage is to refinance the loan in one person's name, which requires the lender's approval, or to sell the property and discharge the loan.

Keeping the family home is often emotionally important but financially risky if the repayments are not sustainable on a single income. Use a borrowing power calculator to check whether you could refinance in your name alone, and a repayment calculator to model what the ongoing cost would look like. Factor in rates, insurance, maintenance, and any buy-out payment to your former partner.

Any buy-out of your former partner's share should be based on a current market valuation, not an estimate or an agreed figure between the two of you. A formal valuation from a registered valuer protects both parties and is generally required if the settlement is formalised through consent orders. The cost of a valuation is typically a few hundred dollars and is far less than the cost of disputing a figure later.

In most Australian states and territories, separation does not revoke a will. Only divorce revokes a will (or the relevant provisions) in most jurisdictions, and even then the rules vary. Until your divorce is finalised, a will made during the relationship may still direct your assets to your former partner. Making a new will immediately after separation removes the ambiguity. A solicitor can also advise on powers of attorney.

Child support is calculated by Services Australia using a formula based on both parents' incomes, the number of nights each parent has the children, and the ages of the children. It is separate from the property settlement. You can apply through Services Australia or make a private agreement. Either way, understanding the formula helps you plan your budget accurately.

Separation can change your eligibility for Parenting Payment, JobSeeker, Family Tax Benefit, and the Parenting Payment Single rate, among others. A crisis payment may also be available if you have had to leave the family home due to family violence or extreme circumstances. Check your eligibility with Services Australia promptly, as some payments are not backdated.

Your financial baseline has changed. A realistic budget that reflects your current income, any support payments you will receive or pay, housing costs, and childcare costs is the foundation for every other financial decision you will make. If your income has dropped significantly, an emergency fund covering three to six months of essential expenses gives you time to stabilise without taking on debt.