Ending a marriage or defacto relationship can be one of the most challenging experiences of your life. If you or your partner has expressed the desire for a divorce, it’s crucial to take the right steps to ensure a smooth transition, especially when it comes to financial separation and child custody. Here’s a step-by-step guide to help you navigate the process effectively.
1. Open Communication and Initial Agreements
Once one of you communicates the desire for a divorce, it’s important to have an open conversation. If possible, sit down together and discuss how you plan to proceed. Any agreements made should be confirmed in writing via email to avoid misunderstandings.
2. Deciding on Living Arrangements
One of the first decisions to make is whether to remain in the family home. Determine if one person can afford to stay and take over the mortgage and pay the other person out or if selling the home is a more viable option. Be sure to approach your mortgage broker or banker early if you’re considering buying out your partner’s share of the property.
3. Set the Date of Separation
The date of separation is a significant detail for your property settlement in any future divorce proceedings.. Both parties can agree on a separation date, or one person can set the date and communicate it in writing to the other. Having this date documented is essential.
4. Financial Separation: Dividing Assets and Liabilities
Once a divorce is initiated, it’s important to evaluate all assets and liabilities, jointly and solely held. This includes the family home, savings, superannuation, loans, and other debts. If both parties are confident in managing this on their own, they can proceed. However, if help is needed, working with financial experts like Div-ide can ensure a fair and efficient process.
5. Arranging Child Support and Custody
For couples with children, determining custody and child support is a top priority. Both parties need to decide how parenting responsibilities and financial support will be shared. These arrangements should be made with the children’s best interests in mind, aiming for a collaborative approach.
6. Superannuation Splitting
In the event of a divorce, superannuation can be split between partners. However, it’s important to note that superannuation must remain within the superannuation environment and cannot be withdrawn as cash unless certain conditions are met. Understanding these rules will help both parties make informed decisions about their financial futures.
7. Managing Joint Finances
Joint finances can be difficult to untangle during a divorce. Decide early whether you’ll keep finances joint temporarily or start separating accounts immediately. Making these decisions early on will help both parties avoid confusion and ensure a smoother transition into financial independence.
How Div-ide Can Help
At Div-ide, we specialise in guiding couples through the financial aspects of divorce. Whether it’s dividing assets, determining custody, or managing superannuation, we make the process simple and efficient. Contact us today for expert assistance in your divorce.
Further Reading: Divorce and Property Settlement Done – What Now?