I was recently featured in industry publication ifa, discussing why financial advisers need to help clients think about relationship breakdown as a financial risk – not just a legal event.
It’s not exactly cheerful dinner-party conversation – but given how common separation is, it’s certainly a topic worth exploring.
Divorce is becoming more expensive
Like just about everything else, the cost of divorce is rising.
According to the Real Cost of Separation 2026 report, the average divorce now costs $12,678 – and some particularly complex proceedings can cost up to $1 million. Thirty-nine percent of Australians considering divorce have delayed the decision because they’re worried about the financial impact.
As I told ifa: “Given the rate of divorce, it’s absolutely incumbent on us to make sure clients have a plan for how it’s going to work if their relationship breaks down. I think advisers should be encouraging clients to think about relationship breakdown as a financial risk. The challenge isn’t whether they should – it’s how you actually have that conversation.”
Preparation starts long before separation
Financial advice shouldn’t be about preparing couples to divorce. It should be about making sure both people understand their financial position and feel capable of participating in important decisions.
This is particularly important when one person has traditionally taken responsibility for the family’s finances. For example, if one partner runs a business, advisers should encourage the other partner to attend meetings so both understand how the finances work and have a safe place to ask questions.
When both people are informed and involved, the imbalance is reduced – whether the relationship continues or not.
The practical details matter
After a separation, there is a long list of financial matters to work through. These may include:
- Establishing how two households will be funded
- Reviewing budgets, investments and Centrelink entitlements
- Deciding how shared expenses will be managed
- Updating wills and Powers of Attorney
- Setting clear financial arrangements if both people continue living under the same roof
Wills and Powers of Attorney should be reviewed as soon as possible, with support from an estate planning solicitor, to make sure they still reflect each person’s wishes.
Keeping the temperature low
My co-host on the Challenge the Standard and Weaving Gold podcasts, Nathan Fradley, was also featured in the article. He made an important point about the adviser’s role during what can be an emotionally charged time:
“As advisers, it’s important that we help keep the temperature low. That means encouraging empathy, discouraging the use of money as a weapon, and helping clients focus on practical financial decisions rather than conflict.”
It also means supporting people as they rebuild. For someone who has never managed the household finances alone, education and confidence can be every bit as important as the technical advice.
You can read the full ifa article here.
If you’re navigating separation and would like clear, practical support with the financial decisions ahead, please get in touch.
Want to know more? Read my articles: “What I told a room of financial advisers about divorce” and “Why choosing an impartial adviser through divorce makes such a difference”.
