Five Critical Mistakes Women Make When Getting Divorced (and How to Avoid Them)
Let’s face it—divorce is tough. Emotionally, mentally, and especially financially. For many women, this life transition can feel like stepping into uncharted territory, especially after years of prioritising family and shared financial responsibilities. The idea of managing finances solo can feel overwhelming, but here’s the thing—you don’t have to figure it out on your own. With the right guidance and preparation, you can avoid common pitfalls and move toward a secure financial future. Let’s explore five critical mistakes and how to steer clear of them:
1. Not Taking Control of Your Finances
It’s common for one partner to take the financial reins in a relationship. But when the marriage ends, stepping into that role can feel intimidating. Without financial clarity, it’s tough to make informed decisions, which can lead to unnecessary stress and setbacks.
How to avoid this mistake: Start by understanding your complete financial picture. Gather key documents—bank statements, tax returns, superannuation details, and property records. Familiarise yourself with the four pillars of financial security: income (earnings), expenses (spending), assets (what you own), and liabilities (what you owe). This knowledge lays the groundwork for confident decision-making. Professional advice can make a world of difference—we can help you create a tailored plan for financial stability post-divorce.
2. Letting Emotions Drive Financial Decisions
Divorce brings a flood of emotions. But when guilt, fear, or frustration drive financial decisions, the consequences can linger. Some settle too quickly, while others make hasty investments that don’t serve their long-term interests.
How to avoid this mistake: Take a step back. Give yourself time to process. Major financial decisions deserve a clear, thoughtful approach. A financial adviser can offer objective insights, helping you see the bigger picture and avoid decisions driven by short-term emotions.
3. Underestimating the Cost of Living Post-Divorce
Living on a single income is a significant shift. Add legal fees, childcare, and unexpected expenses, and costs can quickly escalate. Without careful planning, financial strain is inevitable.
How to avoid this mistake: Develop a realistic budget that reflects your new situation. Think long-term—where do you want to be financially in 5, 10, or 20 years? Don’t assume a lump-sum settlement will cover all bases. Planning for sustainable cash flow is essential, and the right advice can help ensure your finances stay on track.
4. Overlooking Superannuation and Retirement Planning
Superannuation often flies under the radar during divorce discussions. Many women prioritise the family home, only to face challenges later when retirement approaches.
How to avoid this mistake: Understand your entitlements. Superannuation is a joint asset and can be split during settlement. In some cases, a share of superannuation might serve your long-term financial interests better than keeping the house. Start retirement planning now to secure a comfortable future.
5. Not Seeking the Right Professional Help
It’s tempting to save costs by avoiding professional advice, but DIY solutions often lead to missed opportunities and costly errors. Friends and family mean well, but professional guidance is invaluable.
How to avoid this mistake: See professional advice as an investment in your future. A trusted team—comprising a family lawyer, accountant, and financial adviser—can protect your interests and help you navigate the complexities of divorce with confidence.
Moving Forward with Confidence
Divorce is undoubtedly challenging, but it doesn’t have to derail your financial future. By taking charge of your finances, making informed decisions, and seeking the right advice, you can build a secure and independent future. It’s about progress, not perfection. Focus on what you can control and lean on trusted support when needed. With the right guidance, financial security after divorce is well within reach.
Your Vision Financial Solutions Pty Ltd ABN 64 650 296 478 and its Advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. This article has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this article you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.