Family Law and Divorce

Separation is challenging and emotionally taxing, whether you’re married and considering divorce or a defacto couple, but addressing practical matters can facilitate a smoother transition. Here’s a comprehensive checklist tailored for couples in Australia to consider during this time to help keep the process of breaking up as hassle-free as possible:

1. Record the Date of Separation

• Importance: Documenting the exact date of separation is crucial, as it impacts legal proceedings, including divorce applications and property settlements.

2. Organise Personal and Financial Documents

• Gather Essential Documents: Collect marriage certificates, birth certificates, passports, insurance policies, property deeds, mortgage documents, bank statements, tax returns, and superannuation statements.
• Secure Storage: Store these documents safely, perhaps digitally, ensuring both parties have access if needed.

3. Update Personal Information

• Bank Accounts: Open individual bank accounts and consider closing joint accounts to prevent future financial complications. Make sure any recurring payments are updated accordingly.
• Utilities and Services: Update names on utility bills, internet, and phone accounts to reflect current responsibilities.
• Medicare and Health Insurance: Apply for a new Medicare card and inform your health insurance provider of the change in circumstances.
• Passwords: To maintain privacy, change passwords for personal accounts, including email, online banking, and if applicable, streaming services like Netflix and Spotify.

4. Address Living Arrangements

• Decide on Residence: Determine who will stay in the family home and who will relocate. Consider the well-being of any children involved when making this decision.
• Inform Relevant Parties: Notify landlords or mortgage providers about planned changes in living arrangements to ensure compliance with contractual obligations.

5. Develop a Parenting Plan (if applicable)

• Child Custody: Agree on living arrangements, visitation schedules, and decision-making responsibilities for your children.
• Child Support: Discuss and formalise financial support for your children, ensuring their needs are adequately met.

6. Divide Assets and Liabilities

• List Assets and Debts: Compile a comprehensive list of shared and individual assets, including properties, vehicles, investments, and debts.
• Seek Legal Advice: Picking your path through the complexities of separation can be overwhelming. At Koffels Solicitors and Barristers, we specialise in guiding clients through property settlements, parenting arrangements, and other legal aspects of separation. Contact us for personalised legal support.

7. Understand Tax Implications

• Capital Gains Tax (CGT): Under certain conditions, transfers of property between separating partners may be exempt from CGT. Understanding these exemptions is essential to avoid unexpected tax liabilities.
• Stamp Duty: In New South Wales, property transfers between separating couples are generally exempt from stamp duty if formalised through a binding financial agreement or court order.
• Superannuation Splitting: While superannuation can be divided during separation, it’s treated as a transfer rather than a withdrawal, meaning immediate tax consequences are typically avoided. However, tax implications may arise upon accessing superannuation in the future.

8. Update Legal Documents

• Wills and Estate Plans: Revise your will and any estate planning documents to reflect your new circumstances, ensuring your assets are distributed according to your current wishes.
• Superannuation Beneficiaries: Update beneficiary nominations on your superannuation accounts to ensure they align with your intentions.

9. Seek Professional Support

• Legal Advice: “Navigating the complexities of separation can be overwhelming. At Koffels Solicitors and Barristers, we specialise in guiding clients through property settlements, parenting arrangements, and other legal aspects of separation. Contact us for personalised legal support.
• Financial Counselling: Engage a financial counsellor to assist with budgeting and financial planning during this transition.
• Mediation Services: Consider mediation to resolve disputes concerning children and property amicably.

10. Prioritise Self-Care

• Emotional Support: Seek support from friends, family, or professional counsellors to manage the emotional challenges of separation.
• Health and Well-being: Maintain regular health check-ups and engage in activities that promote physical and mental well-being.

By systematically addressing these areas, separating couples can more effectively navigate the complexities of separation, ensure legal compliance, and foster a foundation for future well-being.