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Avoid these

10 financial mistakes people make during separation.

We see these every week. Each one costs money, time, or both. Here is how to avoid them.

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Last reviewed: April 2026

By Jason Given - April 2026 - 7 min read

1. Agreeing to a settlement before knowing what you can borrow

This is the most common and most expensive mistake. You agree to keep the house, sign the consent orders, then discover you cannot refinance to sole name because you do not meet the lender's serviceability requirements. Now you are locked into an agreement you cannot implement. Talk to a broker before you agree to anything.

2. Letting mortgage payments slip

A missed mortgage payment stays on your credit file for 2 years. A default stays for 5. Both destroy your borrowing capacity at exactly the moment you need it most. Even if your ex was supposed to pay - if they stop, you need to cover it. Protect your credit file first, argue about fairness through the settlement.

3. Going directly to your bank instead of a broker

Your bank can only offer their own products and will assess your income using their specific model. A broker compares 60+ lenders and knows which ones treat child support most favourably, which accept BFAs without consent orders, and which have the fastest turnaround. The difference can be $80,000+ in borrowing capacity.

4. Taking on new debt during the process

New credit cards, buy-now-pay-later accounts, car loans - every new debt reduces your borrowing capacity. If you are going to need a home loan after separation, keep your debt profile as clean as possible until the application is submitted and approved.

5. Not getting a proper property valuation

The equity in your property is the central number in any settlement. If you rely on a rough estimate or an online valuation tool, the number could be $50,000+ off. Get a formal valuation from a licensed valuer - it costs a few hundred dollars and protects you from giving away tens of thousands.

6. Forgetting about superannuation

Superannuation is part of the asset pool. If your partner has significantly more super than you, it should be factored into the settlement - either through a super splitting order or by adjusting the share of other assets. Many people forget this and leave tens of thousands on the table.

7. Not formalising the agreement

A handshake agreement or even a written email is not legally enforceable. Without Consent Orders or a Binding Financial Agreement, either party can make a claim later. Formalise the agreement through proper legal channels - it is the only way to draw a line under the financial relationship.

8. Waiting too long to act

Married couples have 12 months from the date of divorce to make a property claim. De facto couples have 2 years from separation. After these deadlines, you need court permission to proceed. Do not let the emotional difficulty of separation cause you to miss a legal deadline.

9. Keeping the house when you cannot afford it

Emotional attachment to the family home is powerful - especially when children are involved. But keeping a house you cannot comfortably afford on one income creates years of financial stress. Sometimes selling and buying something more affordable is the better long-term decision. A broker can model both scenarios honestly.

10. Not planning for the costs of separation

Legal fees, valuation fees, stamp duty (if buying new), moving costs, bond and rent if transitioning to a rental, loan discharge fees, application fees. Separation has real costs and they add up. Plan for them early so they do not derail the process halfway through.

True wellbeing begins at home.

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