“Divorce is one of the most financially traumatic things you can go through. Money spent on getting mad or getting even is money wasted.”
– Richard Wagner
Your income and expenses are likely to change when a relationship ends. Often it’s a case of costs going up and income going down as one household divides into two. After separation it’s more important than ever to get your finances in order and make sure you have a good idea of where your money comes from and where it goes.
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If you’re not used to managing your money, getting all your key financial documents together is an important first step. Find and organise your:
- Savings and transaction account statements
- Utility bills (e.g. electricity, gas, mobile and internet)
- Credit and store cards bills
- Property paperwork (deeds, mortgage papers, home loan details)
- Investment paperwork (managed fund statements, share dividend statements)
- Tax records (tax returns and tax file numbers)
- Insurance policies (e.g. health, home and contents, car, income protection and life)
- Superannuation accounts (both yours and your ex-partners)
Once you have these documents, you should think about putting a budget in place. A budget will help you to understand the relationship between your income and expenditure, and to manage your cash flow.
If you are having trouble paying your bills or making ends meet, it is important that you obtain advice from a financial counsellor quickly. Financial counselling is a free service offered by community organisations, community legal centres and some government agencies. Some clients have had great success using the services of businesses like MyBudget. Financial counsellors can help you solve your money problems and put in place a financial budget which will help you to pay off your bills so that you can start taking steps to build some savings.
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Sydney Law Group is an experienced team of family lawyers who are passionate about achieving the best possible results for our clients. We exist to help you through this difficult time and to guide you to a positive outcome without extra emotional or financial stress. We’re on your side, every step of the way.