Money tips every woman should consider before getting divorced
Written and accurate as at: Dec 13, 2024 Current Stats & Facts
By Vanessa Stoykov
Divorce can be one of the most challenging times of your life, both emotionally and financially. After years of helping people understand and improve their money mindset, I’ve seen how crucial it is for women to grasp key financial principles before taking this life-changing step.
Financial security is your greatest asset during a transition, and understanding how to protect it is essential. Here are three key things every woman should know about money before getting divorced.
Know your financial position
One of the first steps in protecting yourself financially during a divorce is having a clear understanding of your complete financial position. This means going beyond what’s in your bank account and gaining an in-depth understanding of your assets, including property, superannuation, investments, and any shared debts. A major pitfall is realising too late what you’re entitled to or missing out on crucial assets in a settlement.
Begin by collecting essential documents, such as bank statements, super statements, tax returns, and loan agreements. If you’re unsure where to start, consider consulting with a financial adviser who can help you analyse your finances and what you should aim to secure during the divorce. This step might feel overwhelming, but understanding your full financial picture gives you the power to negotiate a fair settlement confidently.
Think long-term, not just short-term
Divorce often brings an immediate financial crisis, making it tempting to focus on short-term needs. However, it’s equally important to consider the impact on your long-term financial health. If you have children, think about how you’ll fund your share of their education, medical expenses, and everyday needs. Beyond that, look at your retirement and think about how you’ll secure your financial future. Will you have enough resources to retire comfortably on your own?
Many women overlook superannuation in divorce settlements, which can have lasting impacts. If you’ve taken time out of the workforce to care for children, your super balance may be lower than your partner’s. Including super in your settlement discussions is critical, as it directly affects your retirement security. Don’t underestimate the importance of planning for these years, as they’ll have a direct impact on your wellbeing down the line.
Build a financial independence plan
Divorce is a powerful opportunity to redefine your financial independence. If you haven’t previously handled financial matters in your household, this is your chance to learn. Start by building up emergency savings, reducing debt, and creating a budget that reflects your lifestyle and financial goals. Financial independence also means gaining confidence in your investment decisions. You don’t need to become an expert overnight, but even basic knowledge on growing your money is invaluable.
Consider exploring new career opportunities or upskilling to increase your income potential. A financial adviser or career coach can guide you through income-generating possibilities that suit this new chapter of your life. It’s an investment in your future, and taking small steps now can yield major rewards over time.
You can do this
Divorce is rarely an easy journey, and the emotions involved can make it hard to focus on finances. However, having a strong understanding of your financial position can be the key to emerging from this transition in a place of strength. By taking time now to evaluate your assets, set long-term goals, and establish a plan for independence, you’re not just preparing for life after divorce—you’re laying the groundwork for a new chapter of self-reliance and growth.
Give yourself the time and space to envision a future that excites you, one where you have the confidence to make informed decisions and the flexibility to shape the life you want. Taking control of your finances now opens doors to possibilities you may not have considered. Your financial wellbeing is not just about surviving today—it’s about flourishing tomorrow and beyond.
You have the strength and resilience to create a fulfilling life on your own terms. Embrace this moment as an opportunity to grow, learn, and invest in yourself. With the right planning and mindset, you’ll be prepared to tackle whatever the future brings, with a renewed sense of purpose, stability, and optimism.
