Getting your finances back on track after separation
Estimated read time: 4 Minutes
When you've recently separated or divorced, facing the task of managing your finances on your own can feel daunting. Here are some steps for you to look into after separation or divorce.
1. There’s no time like the present
2. What are your goals?
3. Look at your budget
4. Look into the paperwork
It’s possible you’ll need to review your paperwork following a break up. Here are some common joint commitments that may need updating.
- Joint Accounts: Bank accounts, savings and transaction account statements. You may also need to address details of any investments and superannuation funds, tax records and business documents if you had a business with your ex-partner.
- Power and phone bills: Check that bills you need covered are still set up to be paid and that any automatic payments and debt repayments are made: Debts that are in joint names can still affect your credit reports.
- Insurance policies: Insurance, income protection, life, health, home and contents and car insurance.
- Credit and store card bills: Look into closing or freezing any joint credit cards or store cards.
- Property deeds or Rental agreements: Property deeds, mortgage papers or home loan details may need to be updated.
With rentals, if you were renting together and your name is on the lease, even if you have moved out, you could be liable for unpaid rent or property damage. - Wills and estate plans: After a relationship break-up you may need to update your will - particularly if you want to change any references to your previous partner.
Making a list and working your way through it could be a good place to start.
5. Live within your means
6. Plan for emergencies
An emergency fund that offers easily accessible cash along with having key insurance coverage can protect you and your loved ones against any unexpected events ahead. It could be helpful to have funds set aside to cover basic expenses like rent, utilities, food and transport in case of such emergencies.
As a general rule, aim to set aside enough funds to cover 2 to 3 months of living expenses and remember to include any loan repayments you may have.
7. Consider advice from an expert
We're here to help
Looking for information on how we can help you evaluate your home loan options after a financial setback like separation or divorce?
Enquire online or contact one of our Lending Specialists on 137 377 – we’re here to help.
Contributor | Matthew Tinker, Chief Service Officer
Matthew joined Pepper Money in 2011 and became Chief Service Officer in 2021. He oversees the strategic direction and performance of our customer service and collections functions. Read more.
Sign up to our newsletter
If you like this article, you'll love our monthly Real Lives newsletter.
View our Privacy Policy
Financial Support
Calling from overseas? +61 2 7227 1517
Money management tips and tricks
From budgeting advice to tips to help your savings go that bit further, our resources have it all.
Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.
All applications for credit are subject to credit assessment, eligibility criteria and lending limits. Terms, conditions, fees and charges apply.
The results of the borrowing power calculator are based on information you have provided and is to be used as a guide only. The output of the calculator is subject to the assumptions provided in the calculator (see 'about this calculator') and are subject to change. It does not constitute a quote, pre-qualification, approval for credit or an offer for credit and you should not enter commitments based on it. The interest rates do not reflect true interest rates and the formula used for the purpose of calculating estimated borrowing power is based on the assumption that interest rates remain constant for the chosen loan term. Your borrowing power amount will be different if a full application is submitted and we complete responsible lending assessment. The results in the calculator do not take into account loan setup or establishment fees nor government, statutory or lenders fees, which may be applicable from time to time. Calculator by Widgetworks.
Pepper Money Personal Loans is a brand of Pepper Money Limited. Credit is provided by Now Finance Group Pty Ltd, Australian Credit Licence Number 425142 as agent for NF Finco 2 Pty Limited ACN 164 213 030. Personal information for Pepper Money Personal Loans is collected, used and disclosed in accordance with Pepper’s Privacy Policy & the credit provider’s Privacy Policy.
Pepper Money Limited ABN 55 094 317 665; AFSL and Australian Credit Licence 286655 (“Pepper”). All rights reserved. Pepper is the servicer of home loans provided by Pepper Finance Corporation Limited ABN 51 094 317 647. Pepper Asset Finance Pty Limited ACN 165 183 317 Australian Credit Licence 458899 is the credit provider for asset finance loans.
Pepper and the Pepper Money logo are registered trademarks of Pepper Group Assets (Australia) Pty Limited and are used under licence.
