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1. CONSIDER A BINDING FINANCIAL AGREEMENT UP-FRONTUnless there is a Binding Financial Agreement (BFA aka the old fashioned ‘pre-nup’), then the financial split is often a series of negotiations. Once lawyers are involved costs will likely skyrocket. BFAs can be entered into at any time and both parties must receive independent legal advice. Like insurance policies, BFAs provide a good Plan B - in the event things don’t work out, a BFA sets out what you both agreed to be fair and equitable.

2. COMPILE A LIST OF ALL ASSETS AND ESTIMATE THEIR VALUEStart with an honest check of identifying and valuing all the assets, debts, income and expenses that you each hold individually and as a couple. For more complicated finances, this may involve assets held in a company, other

structures and/or an SMSF. Everything is up for negotiation and your lawyer and financial advisor will need this information to ensure they can optimise your situation.

3. REVIEW YOUR ASSETS AND BENEFICIARIES IN YOUR WILLDon’t wait for the final settlement to be agreed before reviewing your assets and changing the beneficiaries in your will.

4. REVIEW YOUR BENEFICIARIES IN YOUR INSURANCESimilarly it is important that the beneficiaries in your life insurance policy are updated regularly.

5. REVIEW YOUR BENEFICIARIES IN YOUR SUPERANNUATIONFor many, super is your second biggest asset after your home so it is essential that you regularly update your super following significant life milestones.

6. CHECK WITH CENTRELINK FOR YOUR CHANGED CIRCUMSTANCESCheck with Centrelink regarding the impact of your changed family status, as you may be entitled to additional benefits.

7. CONSIDER WHAT’S IMPORTANT TO YOU NOW AND IN THE FUTUREA common question is “Should I go for the house or the super?” To make this decision you really need to have a vision of your life after the settlement. Ability to access funds, tax implications, your expenses and your living situation are all key factors in this decision.

Determining your new financial goals and strategies will enable you to make smart financial decisions through the divorce process.

8. GET FINANCIAL ADVICE EARLYOn more than one occasion clients have told us they wish they’d sought the support and guidance of financial advice earlier in the divorce process. It’s important to have sound legal advice but it’s crucial to decide what mix of assets will best secure your financial future. Getting financial advice early in the property settlement negotiations is a smart move, don’t’ wait until it is all nearly all signed and sealed.

9. CREATE A FINANCIAL PLAN FOR THE FUTURETo successfully rebuild your financial life after a divorce you have to go back to basics with a budget and a comprehensive financial plan.

10. IF YOU NEED FINANCIAL ADVICE, SEEK SOMEONE YOU CAN TRUSTWhile your relationship with your lawyer will probably end with the divorce, your relationship with your financial adviser or accountant will last many years. So choose one with whom you can comfortably share intimate information, one you trust and who helps you get your finances back on track. They will assist you to surround yourself with the financial resources and assets that will help you and your family move forward in a positive direction and help you create and support the life you deserve.

top finance tips for divorce

10To see more great resources, tools and tips to help you manage your money better head to charteredaccountantsanz.com/moneymatters

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