3 things to think about during separation and divorce

Estimated reading time
 7 min

Learn all about

• The different things you’ll need to prepare for separation or divorce – from paperwork to dividing assets
• Some of the divorce costs you may have to pay for
• How to become more financially resilient than ever after your split

Ending a relationship can be an incredibly tough experience. The process can be long and expensive, even if it’s the start of something new.

And there can be a lot of loss – especially if you dedicated time, energy and money into the relationship. But it can be helpful to look at this stage in your life as an investment in your future^disclaimer.

From the financial side of things, you’re entitled to your fair share. And when you’re splitting assets, the legal system takes contributions to the home seriously, such as doing regular housework or doing renovations around the house.

There are some things you and your partner will have to think about when going through a separation. Who gets the kids (or pets)? How will you split your joint assets? How much will the divorce cost? 

While answering these questions can feel overwhelming, we’re here to support you so you can have the information and resources you need to navigate this stage of your life.

What costs are involved in a divorce or separation?

The cost of divorcing or separating from your partner depends on the relationship you had. If you can work together through the separation as amicably as possible, then the costs will be a lot lower. You’ll also both reach an agreement faster. This translates to fewer (or no) mediation meetings and court hearings for you to attend. But for some, a little more time and help is needed.

When it comes to the numbers themselves, there are some fees you’ll likely need to pay during a divorce. The total cost will depend on if it’s you or your partner who is filing, and how long the process takes.

The Federal Circuit and Family Court of Australia website explains each of the main fees and other costs in more detail – they even cover the divorce process in Australia. But here’s a quick rundown of some of the applications and processes you might pay for – remember, there may be more (or less!) than this depending on your situation:

• The divorce application (around $1,060 but you can get a reduced fee if you meet the eligibility criteria)
• Consent orders, which is a document that confirms the legal agreement between you and your partner (up to $200)
• Initiating application, which starts the process of getting interim or final orders related to family law, like custody and splitting assets (starts from around $400)
• Application to validate the divorce (around $1,505)
• Application to appeal the court orders if necessary (around $1,605)
• Going to court (starts from around $745)

Lawyer fees can vary between state-to-state and company-to-company. You could be looking at around $2,000–$4,000 for a lawyer to help you divide and protect your assets, arrange custody and ensure you get a fair outcome – but this depends on how long the negotiations or court process take. Do your research to make sure your lawyers fees are fair, and that they can walk the talk. If you need some legal advice, then there are some free services that can help you.

And when it comes to paying for the divorce, it’s always a good idea to chat to your bank about the different options you have for paying these fees.

How can you prepare for separation or divorce?

There are some things you can do to be prepared before the formalities begin:

• Get your paperwork in order – Collect all your important paperwork, like bills, property documents and even furniture receipts. This can help you see what you and your partner own together. You might have an agreement that if you bought it with your own money, then it’s yours to keep when you part ways. But for things you own together, like a home, see if you can talk to your partner about how to split those assets up. Write up a list and start thinking about who gets what.
• Manage joint bank accounts – Another thing to chat with your partner about is your joint bank accounts. Closing them together means you or your partner won’t overdraw on the account. You should also cancel any credit cards you share and chip away at paying the outstanding balance. It’s always a good idea to talk to your bank about closing joint accounts or seeking advice on any debt you and your partner have together.
• Consider your children’s needs – Think about what your current and future costs are and how you might want to split those post-divorce. For example, you can agree on how to pay for school, make a parenting plan and figure out child support. You can head to the Services Australia website for more information about child support.

How to bounce back and be financially resilient

If you’ve shared money or other big financial commitments with your ex-partner, being financially independent can seem foreign. But there are some things you can do to set yourself up for a resilient solo chapter:

• Check your financial situation – Take a moment to reflect on your current finances and how you want things to change post-divorce. You can use our 50/30/20 budget planner to give you detailed look at your expenses and help you work out where you can adjust your spending habits.
• Open new accounts for your savings and transactions – You can set up an account purely for your daily bills. Or even set one up for a bit of a financial buffer. You can also open a separate savings account for child support payments or other responsibilities to make any legal commitments easier to manage.
• Get on top of your debt – Can you keep up the monthly repayments on a big-ticket item? Or can you think about refinancing for a better deal? It’s also a smart idea to prioritse paying off your most expensive debt first and knowing your monthly repayments . Chat to your lender and see what options are available to you.
• Double check your insurance – Having the right insurance for your needs, such as health, car, home or life and income protection can be a massive help after separation. On the off-chance that something happens, like your car breaking down or you get injured, the last thing you need post-divorce is more stress. Insurance can give you the support you need when the waters get rough.