Financial Separation Calculator
Help in a separation starts with guidance on how to safeguard your money, winding down joint finances and ultimately regaining your independence.
April 2021 – 4 minute read
What’s in this article:
- Step 1: Calculate property
- Step 2: Other assets
- Step 3: Other money owed
- Step 4: Redistribution of jointly owned assets & money owed
Divorce or a separation can be an extremely difficult time for everyone involved. Every divorce is different but it’s rare that they’re easy.
Heightened emotions and joint finances can often be a recipe for disaster so it’s important that you reach out to us for any financial assistance and to help you plan and prepare for what’s to come.
When you and your partner separate you should immediately start thinking about your finances. Consider protecting your money and winding down on joint finances with the ultimate goal of regaining your financial independence.
Having a clear understanding of you and your ex partner’s joint finances is an important first step in dividing property, money and debt.
Financial Separation Calculator Guide
Our Financial Separation Calculator contains four easy to follow steps to help you understand your financial situation. The first step involves calculating any property costs between you and your partner
Step 1: Calculate Property
To complete this step, you will need to know the following for your principal place of residence and any investment properties.
- Estimated Market Value
- Amount Owing on The Property
- Early Repayment Costs
- Costs to Sell
You may need help of some professionals such as your Home Finance Manager, Real Estate agent and family lawyer to get the correct figures required.
Step 2: Other Assets
This step involves listing all your assets and their approximate value. This includes items like shares, vehicles, furniture, white goods and electronics.
It’s important that you remain consistent when applying values and use either the replacement value or fire-sale value.
Step 3: Other Money Owed
Step 3 involves determining the amount of money owed. This will be used with the figures from steps 1 & 2 to determine your Current Consolidated Position.
You will need to determine the amount of money owed from the following items if applicable
- Store Cards
- Credit Cards
- Phone Plan
- Line of Credit/Overdraft
- Personal Loan
- Investment Loan
- Interest Free Finance
- Buy now, pay later (e.g. Afterpay, Openpay)
- Any other money owed
Step 4: Redistribution of Jointly Owned Assets & Money Owed
The 4th and final step involves redistributing the assets and debt between you and your partner to determine your final financial situation.
After your joint assets have been calculated you will need to determine the percentage split to be allocated between you and your partner. This can be a sensitive topic and may require mediation with the help of a family lawyer and accountant.
After these steps have been completed, the final result will provide an overall view of your current financial position and the proposed redistributed position.
With a better understanding of your financial position after a separation, you can start to establish your new lifestyle and start aiming towards a financial goal such as paying off loans or saving for a holiday.
As always, we’re here to help. Whether you’re getting back on your feet or looking at starting your own business. For general enquiries, reach out to us by calling 132 032.
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Things you should know
This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness for the information to your own circumstances and, if necessary, seek appropriate professional advice.
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