The road to a property settlement can be long and windy but you’ve finally managed to settle, get consent orders and execute them accordingly. First of all, take a deep breath – you’re at the end of that road! However, there are some things you should consider to make sure you are financially certain moving forward.
Keep reading for our 5 top tips for getting back on firm financial ground after concluding your property settlement matter…
It may be time to revise your will and look into forming a new power of attorney and enduring guardianship. It is important to make sure your will reflects your current asset pool and is distributed in light of your recent separation. A divorce automatically revokes a will, so it’s important to update your estate and succession planning after separation. Similarly, you may need to update your enduring guardianship and power of attorney to someone other than you previous partner.
Closing joint accounts will probably be a part of executing your property settlement. Nonetheless, it is important to double check that ALL joint accounts are dealt with appropriately. Particularly in the case of credit cards. Check your credit rating to ensure that your ex-partner’s details or rating is not listed as this may cause problems with getting a loan in the future.
Make sure you have all your invoices paid off with your law firm and that the agent holding the funds from your settlement in trust has released all monies appropriately. It is also worth checking whether you need to recoup any money paid for disbursements which was not used in the course of your matter. In short, put this behind you – square up both sides of the balance sheet.
You may leave your property settlement with either more or less superannuation than you initially had. Either way, a property settlement calls for a re-evaluation of your financial future. You now only have one income to support your retirement where you may have expected to have two. As such, consider whether you need to contribute more to your super to secure a comfortable retirement fund. Also consider looking at other investment options to make your money as productive as possible.
Budgets are underestimated far too often. Your financial resources have changed and, as such, you may need to change your lifestyle and spending habits. As time consuming as it may be, understanding where your money is going will set you up financially post-separation.
If you have any questions please contact us at frank@franklaw.com.au
This is not legal advice.