Our Top Tips to Minimise Stress & Divorce Costs in NSW

Going through a separation or divorce can be one of life’s most challenging and emotional experiences. It affects the couple and their children, work, family, and friends. The process can be disruptive, often involving moving homes, changing schools, and grieving what has been lost.

In what is a stressful and emotional time, there are some actions you can take to smoothen the process.

Divorce vs separation: what’s the difference?

Before we get started, it’s important to make some distinctions between divorce vs separation.

In Australia, separation occurs when a married couple decides to live apart permanently, marking the start of the 12-month separation period required before filing for divorce. Separation doesn’t require legal formalities and can even occur while living under the same roof if certain conditions are met.

Filing for divorce in NSW, on the other hand, is the legal process that officially ends the marriage after the couple has been separated for at least 12 months. While divorce dissolves the marriage, it doesn’t resolve issues like property division or child custody, which require separate legal actions.

Tips to minimise stress & divorce costs

Managing stress and keeping costs down can be challenging but essential when facing separation and divorce. With these practical tips, you can navigate the process more smoothly and protect your financial future.

#1: Know your numbers

It is important to try to come to some agreement while filing for divorce in NSW.

Start by taking a detailed inventory of your assets, including superannuation, and note any debts. List personal items like cars, household contents, and other significant belongings. It’s essential that both you and your partner have copies of these documents, including insurance policies.

Another important consideration is what each of you brought into the relationship and what has been contributed over time. Remember, leaving the family home doesn’t mean you forfeit your share of the property.

Transparency is key—attempting to hide assets or money can backfire during the settlement process, potentially increasing your divorce costs.

#2: Make joint decisions where possible

Effective communication is key to smoothly navigating a separation. Whenever possible, try to find common ground and make joint decisions. Important questions to consider include:

• Who will stay in the home?
• If there are children, where do they live, and what does visitation look like?
• Who will pay child support, and how much?
• Is there any financial support available from Services Australia, like parenting payment?

It’s also wise to consider splitting joint accounts, credit cards, and other shared assets like cars and household contents. Open new individual accounts and create a budget to help manage your finances independently.

#3: Get a written agreement

Given that the average cost of divorce in Australia is $1,060 to be lodged in court without solicitors’ fees, having a basic agreement can result in considerable savings. The average cost of divorce in Australia is $21,000 per person. Taking the matter to court can increase the costs to $50,000 – $100,000 per person (Trainor, 2017). It can also create a lot of uncertainty for any children involved.

#4: Seek professional guidance

It’s essential to seek professional advice early in the process. Consulting a family law specialist will help you understand your legal rights and avoid being rushed into an unfavourable agreement. There are various ways to handle separation that don’t involve going to court, often leading to faster and less costly resolutions.

Don’t forget to consider your estate planning needs. You may need to update your will, change the nominated beneficiary on your superannuation, or adjust your life insurance. Consulting a financial adviser can also provide valuable insights into different settlement strategies and how to move forward independently.

#5: Self care

During such a challenging time, it’s easy to neglect your well-being. However, self-care is crucial. Surround yourself with supportive friends and family, and don’t hesitate to seek counselling or other formal support if needed. Maintain healthy habits—eat well, exercise regularly, and follow your usual routines. Consider exploring new hobbies or interests to help you focus on your growth.

#6: Focus on the longterm

It is easy to get bogged down in the short-term pain of separation, as there can be a desire to “be right,” or you may have a sense of payback. Civility during this time can help everyone, including children, adapt to the new normal. By remaining supportive of yourself and your children, you can focus on the future and what your future will be.

Secure your financial future during a divorce in NSW: We offer expert guidance

Navigating separation and divorce in Australia can be overwhelming, but you don’t have to do it alone. Understanding the financial aspects of separation is crucial, and seeking professional guidance can make all the difference.

At Elliot Watson Financial Planning, we’re here to help you manage your finances, make informed decisions, and secure your future during this challenging time. Whether you’re looking for advice on dividing assets, planning for your financial independence, or simply needing support, our team is ready to assist.

Take the first step towards a brighter financial future by contacting us today.

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