Understand your financial position
A good first step is to get a clear picture of your finances. Take stock of your income, expenses, savings, debts, insurance and superannuation. Understanding where you stand financially can help you identify priorities and make informed decisions about what comes next.
Review joint finances
If you shared finances with your former partner, review any joint accounts and commitments, including bank accounts, credit cards, loans, direct debits and household bills. Before making changes, make sure you understand your responsibilities and seek professional advice if required. Acting early can help avoid confusion and ensure your financial arrangements reflect your new circumstances.
Protect your credit history
Your credit history can play an important role in future borrowing. To help protect it:
- Keep up with repayments wherever possible
- Monitor any joint debts that remain active
- Check your credit report regularly
- Contact your financial provider early if you're experiencing financial difficulty.
It's important to remember that joint debts can continue to affect both parties until arrangements have been formally updated.
Review insurance and beneficiaries
Major life changes are a good opportunity to review your insurance cover and nominated beneficiaries. Consider checking your:
- Home and contents insurance
- Car insurance
- Health insurance
- Life insurance
- Income protection insurance
- Superannuation beneficiaries.
You may also wish to review your will and other estate-planning arrangements with a qualified professional.
Adjusting to one income
For many people, separation means managing on a single income for the first time. Creating a realistic budget can help you understand where your money is going and identify opportunities to reduce expenses. Focus on essential costs first and look for small ways to build financial stability over time. Even modest savings can help create a buffer for unexpected expenses and provide greater peace of mind.
Moving forward
Financial recovery doesn't happen overnight, but small steps can make a meaningful difference. By understanding your finances, reviewing important arrangements and planning for your future, you can begin rebuilding confidence and working towards your next goal.
We’re here to help
If you're experiencing financial difficulty, contact BankVic on 13 63 73 as early as possible. Seeking support early may provide more options and help you navigate this transition with greater confidence.
