5 Strategies for Financially Surviving Divorce
Published 14 November 2025
Divorce can be one of life’s most emotionally and financially disruptive events. Whether you’re in the early stages of separation or rebuilding after a settlement, understanding the financial implications and taking proactive steps can make all the difference.
More than 47,000 divorces were granted in Australia in 2024, down 3 per cent on the previous year. At divorce, marriages had lasted around 13.2 years. The median age of those divorcing was 47.1 years for men and 44.1 years for women.i
Divorce reshapes your financial landscape, dividing assets, splitting incomes and doubling expenses as two households replace one. The cost of divorce can be as much as $870,000 per couple, according to one estimate, which also finds that women – particularly older women – often experience a 30-45 per cent drop in living standards.ii
According to the Workplace Gender Equality Agency, women in Australia tend to retire with around half the superannuation savings of men — for example, in 2013-14 the average balance for women aged 60-64 was about $138,154, compared with $292,510 for men.
More recent research indicates women are still much more vulnerable in retirement: they are almost 1.5 times more likely than men to be forced into early retirement between ages 55-64, and in many cases face shortfalls of up to $95,000 in superannuation due to caregiving and other events.
“These kinds of statistics show clearly that women often have a shorter runway and smaller margin for error when it comes to retirement saving,” says Mark Gunn. “Working with an adviser sooner rather than later means we can identify the gaps, build the habits and structure the plan so that your legacy, and your financial independence, are protected.”
This financial strain is compounded by legal fees, potential spousal maintenance, child support obligations and the need to reassess retirement plans.
Step 1: Get a clear picture of your finances
Start by taking stock of your financial position to provide clarity when negotiating settlements and planning your future.
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List all of your assets including property, superannuation, vehicles, bank accounts and investments.
- Identify liabilities, such as mortgages, credit cards and personal loans.
- Detail your income sources including employment, Centrelink, child support and spousal maintenance.
Step 2: Budget for your new life
Post-divorce budgeting is more than balancing numbers. It’s about redefining your financial identity. You may need to adjust your lifestyle, reconsider housing options and build an emergency fund to cushion unexpected costs.
Don’t overlook your credit health. Joint accounts and shared liabilities can affect your credit score, even after separation. Close or convert joint accounts, monitor statements and make sure that bills are paid on time. Maintaining good credit and cash flow is important for securing housing loans and for your future financial stability.
Step 3: Understand asset division and superannuation
Property settlements can be complex and have serious tax implications. Assets acquired before or during a marriage, including super, are usually part of the asset pool. Super accounts can be split as part of a settlement, transferring a portion from one partner to the other, a move that can significantly affect retirement planning.
Don’t forget that timing matters in financial decisions during divorce. Rushing into asset division or investment choices while emotions are running high can lead to costly mistakes. Take time to understand your options, get independent advice and avoid making decisions based on short-term comfort, such as keeping the family home if it will unreasonably strain your budget. A measured approach helps protect your long-term security.
On the other hand, don’t forget there may be legal time limits to settlements both for married people and de facto couples.
Step 4: Plan for tax and legal issues
Divorce can trigger other tax consequences, especially when transferring or selling assets. But make sure you’re aware of the possible capital gains tax rollover relief and stamp duty exemptions that may apply in your circumstances.
It’s also important to update your will, powers of attorney and insurance policies as quickly as possible.
Because these decisions have long-term effects, it’s wise to seek guidance from not only your lawyer but also a tax specialist and we are here to assist you and assess your financial situation.
Step 5: Rebuild with purpose
Once the dust settles, it’s time to rebuild.
Take the time to:
- Set new financial goals
- Develop an investment strategy suited to your risk tolerance
- Maximise your super contributions where possible
- Plan for retirement with revised expectations.
Divorce is a financial reset. While the outlook can seem daunting, there’s also an opportunity to take control of your financial future. With the right advice, you can emerge from divorce not just surviving but thriving.
Final Thought
Your financial future deserves more than hope — it demands the right support and a clear plan. Having a trusted partner can help you take meaningful steps now and stay on track for the long term. At Frontier Financial Group, we’re here to guide you through the conversations, the choices and the actions that will protect your future and align with what matters most to you. Please consider booking an appointment early in the process so we can help you start planning and rebuilding a secure future together.
i Marriages and Divorces, Australia, 2024 | Australian Bureau of Statistics
ii 6 Steps to Financially Plan for Divorce | My Wealth Solutions
