Manage financial pain after break-up

DIVORCES are destroying Australian relationships later in life, creating extra complexity where money is concerned.

The latest Bureau of Statistics data shows that the median length of marriages ending in divorce has increased slightly to 12.1 years, while the median age of divorcing men and women is also higher, at 45.3 year and 42.7 years respectively.

Financial experts say while money may be the last thing on your mind when a relationship ends, making a “clean break” on the financial front can help you move on.

The Australian Securities and Investments Commission’s MoneySmart financial guidance service says the first steps in a separation should include closing joint bank accounts, recording key dates, assets and debts, updating rental agreements and utility bills, and seeking legal advice.

MoneySmart senior executive leader Laura Higgins says it is likely that older couples have established shared assets and joint accounts, which could be complex.

“Another aspect that can further complicate this is when one person in the relationship managed the finances, which may result in a lack of equity in the financial decisions and planning,” she says.

People’s Choice Credit Union spokesman Stuart Symons says it is important to take timely action.

“If the relationship was longterm or significant, you may need to split your property and other assets, and time limits can apply to the division of these things,” Mr Symons says.

Sorting out debts and bills quickly is also important.

“Even if you and your ex are on good terms after the breakdown of a relationship, if you share children, pets or assets, you should seek your own legal advice,” he says.

ASIC has online tools to help people navigate break-up finances, including an asset stocktake calculator and a divorce and separation financial checklist.