protecting assets after separation
Separations are a painful and consuming experience which often leaves little capacity for us to think about what steps we should take to protect ourselves financial. Below is a checklist to consider. Please note this is a broad checklist, and not all aspects of the checklist will be applicable in every circumstance.
sort out your bank accounts
Is your income currently being deposited into a joint account that both you and your spouse have access to? Depending on the circumstances, you may wish to arrange for your income to be deposited into a separate account which only you have access to. Please note however that if your spouse is dependent upon your income for day to day living expenses, you may be required to pay spousal maintenance.
If you have a credit card to which your former spouse is a supplementary cardholder or otherwise has access to, you may want to consider reducing the credit card limit or otherwise cancelling the supplementary card.
prepare your estate
Do you have a will? If so, it might need to be changed in light of the separation. If not, you may want to consider having a will prepared.
full and frank disclosure
Prior to the commencement of any proceedings, you and your former spouse will need to exchange full and frank disclosure. This means all documentation and information relevant to your individual and joint financial circumstances. This is a process which you should commence as soon as possible. If need be, speak to your accountant as a starting point. Otherwise get on top of your bank accounts, tax affairs, investments, superannuation, liabilities and any other relevant financial matters.
inventory
Take stock of any valuables you and your spouse own, including but not limited to artwork, wine, jewellery and watches. It is best to take photos of the relevant pieces and any documentation relating to them, including but not limited to receipts, invoices, insurance papers and warranty documents
get legal advice
Commence the process of obtaining legal advice. It’s important that you understand where you stand, and how you can plan for the best outcome possible.