The property settlement is done. The legal agreements are signed. For the first time in months, possibly years, you can stop thinking about what you are dividing and start thinking about what you are building. This guide is for people at exactly that point: the settlement is behind you, and now you need a plan.
What follows is a practical, step by step framework for getting your financial life in order after separation. Some of it is straightforward. Some of it is easy to overlook. All of it matters.
1. Your new financial baseline
Before you can plan anything, you need a clear and honest picture of where you stand right now. That means sitting down and mapping out three things: what you own, what you owe, and what comes in and goes out each month.
After settlement, your financial position will look different from anything you have experienced before. You may have fewer assets but also fewer debts. You may be on a single income for the first time in years. Your regular expenses will have shifted, sometimes dramatically, sometimes less than you expect.
Start with the basics:
- List every asset you now hold: property, savings, shares, superannuation, vehicles
- List every liability: mortgage, personal loans, car finance, credit cards, HECS/HELP
- Calculate your net position (assets minus liabilities)
- Map your monthly income against your monthly expenses
This is your starting point. Everything else flows from here. If you want a structured way to do this, Lendology's budget calculator walks you through it step by step and gives you a clear picture of your monthly surplus or shortfall.
2. Budgeting on a single income
One of the biggest anxieties people carry into post settlement life is the fear that they simply cannot afford to live on one income. In practice, many people find it is more manageable than they expected, particularly once they have a proper budget in place and have cut the expenses that were tied to the old household structure.
The key is to build a budget that reflects your actual life now, not the life you had before. That means:
- Recalculating housing costs (mortgage or rent on your own)
- Adjusting utilities, groceries, and transport for a single person or single parent household
- Accounting for child support received or paid
- Factoring in any Centrelink entitlements you may now qualify for
- Being realistic about discretionary spending rather than cutting everything to zero
A mortgage broker can also help you model what is realistic. If you are carrying a home loan, there may be options to restructure the loan, extend the term, or consolidate debts to bring your monthly commitments down to a level that works. These are conversations worth having before you assume the numbers do not stack up.
3. Update your will and powers of attorney
This is one of the most important and most commonly overlooked steps after separation. If you have not updated your will, your ex partner may still be named as your executor, your beneficiary, or both. Depending on your state, separation alone may not automatically revoke those appointments.
In most Australian jurisdictions, divorce (not separation) revokes gifts to a former spouse under a will, but the rules vary by state, and there are exceptions. If you are separated but not yet divorced, your existing will almost certainly still stands as written.
You should also review:
- Enduring power of attorney. If your ex is named as your attorney for financial or medical decisions, that appointment likely remains in effect until you revoke it.
- Advance care directive. Same principle. If your ex is named as your substitute decision maker for health care, update it.
- Superannuation death benefit nominations. These operate outside your will entirely (covered in section 5 below).
See a solicitor as soon as your settlement is finalised. This is not something to put off. You can find family law professionals through our trusted partners directory.
4. Review your insurance
Separation changes your insurance needs in ways that are easy to miss until something goes wrong. Take the time to review every policy you hold and make deliberate decisions about what you need going forward.
Life insurance
If you have a mortgage, most lenders expect you to hold life insurance at a level that covers the outstanding loan balance. If you previously held a joint policy, you will need a new policy in your sole name. Check whether your existing cover is adequate for your new circumstances, particularly if you are now the sole income earner for dependants.
Income protection
On a dual income, losing one salary was manageable. On a single income, it can be catastrophic. Income protection insurance replaces a portion of your earnings if illness or injury stops you from working. If you do not already have it, now is the time to consider it seriously.
Home and contents
If you have moved into a new property or your ex has moved out, update your home and contents insurance to reflect the current occupant, the current contents, and the correct sum insured. Old policies may still list your ex partner or cover items that are no longer in the home.
Car insurance
Joint car insurance policies need to be separated. If you kept a vehicle from the settlement, make sure the policy is in your name and reflects any change in the vehicle's use or storage location.
5. Superannuation and beneficiaries
Superannuation is one of the largest assets most Australians hold, and after a separation that involved super splitting, your balance may look very different from what it was. There are three things to address immediately.
Update your beneficiary nomination. Your super fund's death benefit nomination is separate from your will. If your ex is still listed as your beneficiary, that nomination may still be valid, especially if it is a binding nomination that has not expired. Contact your fund and update it. Understand the difference between binding and non binding nominations: a binding nomination legally compels the trustee to pay to the people you have named, while a non binding nomination is only a guide the trustee may choose to follow.
Check your balance after splitting. If super was split as part of your settlement, confirm the transfer has been processed and your balance reflects the correct amount. Errors do happen, and catching them early is far easier than correcting them later.
Consider increasing your contributions. If your super balance has been reduced through splitting, you may want to increase your contributions to rebuild. Salary sacrificing additional contributions can also reduce your taxable income. A financial adviser can model the most tax effective way to do this based on your income and age. For more detail on how super splitting works, see our guide to superannuation and divorce.
6. Building credit and savings
Separation can affect your credit profile in several ways. Joint debts that were not paid on time, accounts that were closed abruptly, or simply the reduction in available credit can all leave marks. The good news is that credit profiles recover, and there are concrete steps you can take to speed that process up.
- Check your credit report. Request a free copy from Equifax, Experian, or illion. Look for any joint debts still listed, any defaults you were not aware of, and confirm that closed accounts are showing correctly.
- Make every repayment on time. Payment history is the single biggest factor in your credit score. Set up direct debits for every recurring obligation so nothing slips through.
- Clear small debts first. Paying off a small personal loan or credit card in full sends a positive signal to credit reporting agencies and frees up cash flow.
- Avoid new credit applications. Every application creates an enquiry on your file. Multiple enquiries in a short period can lower your score. Hold off on applying for new credit for at least six months unless it is essential.
- Build an emergency fund. Aim for three months of living expenses in a savings account. This buffer means you will not need to rely on credit if something unexpected comes up.
For a deeper look at protecting and rebuilding your credit after separation, see our guide on how to protect your credit score during and after separation.
7. When to see a financial adviser
Lendology handles the lending and mortgage side of your financial life: borrowing capacity, refinancing, loan structuring, and helping you buy your next property. But there are areas where a qualified financial adviser adds real value, and the two services are complementary rather than competing.
A financial adviser can help with:
- Investment strategy and portfolio construction
- Superannuation optimisation (contribution strategies, fund selection, retirement projections)
- Tax planning and structuring
- Insurance needs analysis (life, TPD, income protection, trauma)
- Long term wealth building and retirement planning
After separation is one of the most valuable times to get professional financial advice. You are effectively starting with a blank slate, and the decisions you make in the first year or two can compound significantly over time. A good adviser will help you set a direction, not just react to what has happened.
If you do not have an adviser, we can point you in the right direction. Our trusted partners page includes financial advisers we have worked alongside and trust.
8. Planning your next property move
Whether you kept the family home, sold it, or moved into rental accommodation, at some point you will need to decide what your next property step looks like. There is no rush, but it is worth thinking through your options clearly.
If you kept the home: Make sure the mortgage is structured properly for your current income. Review the interest rate, the loan term, and whether an offset account or redraw facility could help you build a buffer. A broker can check whether a better deal is available.
If you are renting: Renting is not a failure. It gives you time to stabilise, save a deposit, and wait until you are genuinely ready to buy. Many people rush back into property too soon after separation and end up financially stretched. Take the time you need.
If you are ready to buy: Start with a borrowing capacity assessment. Your broker can model what you can realistically borrow on your current income, factoring in any child support, debts, and living expenses. From there, you can search with confidence rather than guessing. Our guide to lending after separation covers the process in detail, and the solo borrowing calculator gives you a quick indicative figure.
Common questions
Ready to plan your next step?
A no obligation conversation with Jason will give you clarity on your borrowing capacity, your mortgage options, and where to start with the lending side of your financial plan.
Lendology
We are not just explaining the process. We arrange the actual finance: refinancing into your sole name, funding a partner buyout, or setting up a new loan independently after settlement. We work with a panel of over 60 lenders to find the one that fits your situation.
Once the legal side of your property settlement is resolved, the next step is usually a financial one. That is where we come in.
Jason and Steve also help clients with first home loans, refinancing, and investment lending at lendology.com.au.