Clearly your financial standing can be severely impaired as a result of separation. An important consideration at this time is to form a budget so that you can see what areas of your financial life require most adjustment. Insurances will require recalculation, or at least need a change of ownership and you will need to open your own bank account in order to make the division of cash and/or proceeds from the sale of split assets easier. Centrelink benefits may be affected by your change in marital status also.
Superannuation splitting is an important – and often confusing – part of marital breakdown. The funds will usually be legally required to remain within a super environment unless a condition of release can be met. Either way it is imperative to receive the correct advice from a financial adviser in order to stay on track for your retirement needs and to invest appropriately for your circumstances.
Remember Capital Gains Tax- If you’re not careful you could be up for tens of thousands of dollars in tax by selling down assets or transferring ownership of these. There are a number of exemptions that apply to property settlements so make sure you take advantage of these. This tax can often be easily avoided or significantly reduced by structuring the property settlement appropriately.