Divorce is a challenging and emotional process, particularly when one partner controls the finances. To protect your financial interests, it’s crucial to take the right steps early on. Here’s a guide to help safeguard your assets and financial security during this time:
-
Update Utility and Lease Details
If you or your partner move out, ensure that all utility accounts and lease agreements are updated. If your name is still on any bills or the lease, you could be held liable for unpaid rent or damages, even if you’re no longer living there. Take action to avoid any unexpected financial responsibility.
-
Secure Your Finances
Consider closing joint accounts if it’s safe to do so. Change all PINs and passwords to ensure only you have access to your funds. Open an account your partner cannot access, and make sure that your income is directed there. If closing accounts isn’t possible, make sure your bank doesn’t share address changes with your partner to maintain privacy.
-
Seek Professional Advice Early
It’s essential to consult with not just a family lawyer but also accountants, financial planners, and estate lawyers as soon as possible after separation. These professionals can help you understand the financial and tax implications of your decisions, particularly when it comes to asset division, trusts, or company interests. Getting expert advice early helps avoid surprises and sets you up for successful negotiations.
-
Compile Financial Information
Start compiling a detailed list of all assets and liabilities, including bank accounts (joint and individual), properties, vehicles, debts, shares, superannuation, and business interests. Keep track of any changes in these assets after separation, as they will form part of your property pool and could impact the settlement.
-
Monitor Your Assets
Even in an amicable separation, it’s important to stay vigilant about your finances. If you have substantial amounts of money in joint accounts, consider putting limits on withdrawals or adding joint signatories. Regularly monitor accounts and assets to ensure no unauthorised transactions or sales occur, as any significant changes could affect your property settlement.
-
Be Transparent and Amicable
Where possible, aim for an amicable and transparent separation. Open communication about finances can reduce stress, prevent misunderstandings, and help streamline the settlement process. Being transparent also helps fulfil your legal duty of disclosure and narrows down the key issues for negotiation. This can save you time, money, and emotional strain in the long run.
-
Change Your Passwords
Make sure to change all your passwords immediately. This includes computer access, phone and tablet PINs, online banking logins, and email accounts. Use strong, unique passwords for each. Even if your separation is amicable, protecting your privacy and security is essential as situations can change unexpectedly.
Conclusion
Protecting your financial interests during a divorce requires careful planning and swift action. By securing your finances, seeking professional advice, and being vigilant about your assets, you can navigate the divorce process more effectively and ensure your financial future remains intact.