How much money do you need to survive a breakup? A divorce lawyer weighs in.

If you are in the process of a relationship breakup, finances are probably the last thing on your mind. 

It makes sense, you’re probably more focused on how you will make it through the day with your heartbreak. And while you absolutely need to grieve, you also seriously need to consider your finances.

Whether in a de facto relationship or a marriage, you need to consider how you will divide the asset pool and think about how you will move forward financially in the short and long term.

As a lawyer specialising in divorce, here are six financial points to consider during a breakup.

1. Know where you stand

If you’re in an established defacto relationship or marriage, you have a common pool of assets. The value of all your assets are added together, regardless of who paid for what or whose name is on the ownership. They are then divided. The division depends on the agreement between the parties and the circumstances of the relationship.

Watch: Single mum Canna Campbell on how you can turn your finances around. Post continues after video.

2. Consider unexpected inclusions

Any bad investments, including gambling, are factored into any financial separation and can be considered a waste of marital money. This will be considered in the proceedings and when settling.

Also, if you own a business, the value will be a part of the asset pool in your separation, even if your spouse hasn’t worked in the company. The process is to look at the total value of the business and work out the division based on the recommendations of any valuation and the overall split to occur between the parties as part of any settlement. The conduct of the business will also be considered, such as if the business was the sole income during the relationship.

3. Be realistic and transparent

Be realistic about what’s available in the pool and what’s fair. You can’t make money appear from thin air, and remember that your ex needs to survive too. Also, always be honest about your assets, earnings and contributions. This will make the process more smooth and lead to a faster resolution and avoid unnecessary court proceedings being initiated to obtain your financial disclosure.

4. Seek professional advice

Seek advice from a mortgage broker or financial planner so you know what you need to move forward and communicate that to your partner.

Additionally, if you haven’t been good with money during the relationship, get a money coach to teach you how to manage your spending independently. You do not want to repeat bad habits in a new relationship, and you want to make sure you are financially self-sufficient.

5. Understand the nuances of consent orders

The court needs to finalise consent orders after you separate, as this will protect the parties from any future argument about further division of assets. The aim of consent orders is to finalise the financial relationship of the parties once and for all.

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6. Get job-ready and money smart

If you have been out of the workforce for some time, I recommend getting a money coach or, if possible, looking into upskilling to determine how you might financially support yourself. You could also identify what education or experience you already have to help you get into the workforce or what training you could do to get a job.

If you have been working, but your ex hasn’t, you should consult them to see if they require spousal maintenance for the time they are educating themselves in an area of employment before they can get a job.

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