Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 594

Navigating broken relationships and untangling assets

Relationship breakdowns can be emotionally challenging, particularly during the holiday season. As an accounting partner and a family law specialist, we’ve both seen when emotions can cloud judgment and make it difficult to approach asset protection, and if required, a division. The holiday season can make this harder, but it’s a sad fact that for many couples, this is the period when it’s finally time to let go and separate your lives and assets.

So here are some pointers on how to do just that, calmly and rationally through a separation process.

The most difficult aspect: letting go

Shared possessions often carry memories—both good and bad—which can make it hard to lose, or even keep, certain items. People can make decisions which make no financial sense. The cost of settling some disputes is disproportionate to the value of the issue or asset, so advice about when to let go can save you angst and cost.

Important decisions have to be made at this time. Approaching this task with your accountant helps to ensure that the overall impact of your decisions is clear to you: they can help ‘light up’ options to deal with these issues and help you understand what each might mean for you.

The first step

To begin the process, a comprehensive inventory of everything acquired during the relationship (including assets and debts) must be taken. This includes:

  1. Physical assets: Real estate, vehicles, furniture, and personal belongings.
  2. Financial assets: Bank accounts, investments, and superannuation accounts.
  3. Intangible assets: business interests.

This helps provide a clearer picture of the ‘asset pool’ i.e. what needs to be kept or divided – and it’s a critical step. Some people are very clear on what assets they have; others aren’t. But couples have a legal duty to exchange financial information, so transparency during this process is crucial and mandatory. Hidden assets can lead to complications, delays, protracted disputes and cost orders against parties who fail to honour their duty – even if it is an oversight.

This is why it’s important to maintain thorough records of all individual and shared financial dealings including assets, income, expenses and debts. These can be vital in ensuring a fair division and may be relied on if disputes arise.

Involving your accountant here is also important. They can help you provide information quickly and effectively. They can clarify ownership where different structures are involved and may already have structure charts that identify your financial assets. A shared early understanding of your assets saves you time and cost.

And it’s critical to consider the difference between the market value of assets versus the emotional value. The costs involved in ‘winning’ assets with great emotional value can be considerable, so some perspective is important. Accountants can help clients to make this assessment.

Have a strategy around dividing assets

Sometimes, the traditional division of assets may not be practical, and people need to consider alternatives such as trading assets or cash settlements. This is where a financial strategy meeting with your advisors can be hugely valuable. They can provide advice about which assets you actually do need for your lifestyle and future financial needs and recommend the most favourable pathway to minimise the impost of tax and other fees to your family and you.

Think through your legal position

When assets are involved, consulting a legal professional is necessary. Laws regarding asset division in Australia are applied with considerable discretion.

Understanding your rights after a relationship is crucial and you should get specialist advice early, so you know where you stand. Family law also looks at businesses, trusts and partnerships, as well as personal and other interests.

Couples and their families are unique and so you need to get advice about your particular circumstances. Further, the Commonwealth Parliament has just passed new laws for property settlement which come into effect from 10 June 2025.

A lawyer can help mitigate emotional stress by providing objective guidance before, during and at negotiations.

Consider mediation

Discussions about finances can be tricky if it’s already hard to talk. Trust your judgement. If you feel conversations might be become contentious or unproductive, consider involving a mediator sooner rather than later. This can help ensure everyone stays on track, respectful and heard. It’s important that everyone remembers the intention is to find a resolution through a respectful conversation that allows both parties to move on. An accredited mediator can provide structure and help both parties reach an amicable agreement.

Protect yourself in other ways

Family law property settlements often occur in an emotional context. It’s important to recognise that the parties to a separation are making big financial decisions in the midst of emotional upheaval. It’s essential to make fully informed decisions, rather than decisions based on emotion alone.

Feelings of anxiety, distress or just being overwhelmed are commonplace, but that does not make them easier to manage or safe to ignore. If you are feeling overwhelmed by the separation, then talk a health professional, like your doctor. It is difficult to make wise choices and decisions if you are unwell. Take care of your health at this time when you are making big decisions.

 

Danielle Hart, CPA is an Associate Director at Marin Accountants, and Jane Koelmeyer, BA LLB is Principal of Jane Koelmeyer Family Law & Mediation. This article is for general information only. It does not consider any of your personal objectives, financial situation or needs. Before taking any action, you should seek appropriate professional advice.

 

  •   15 January 2025
  • 1
  •      
  •   

RELATED ARTICLES

Where Baby Boomer wealth will end up

Five charts show predicaments facing financial advice

Eight steps to expect when seeking financial advice

banner

Most viewed in recent weeks

Are you making these SMSF mistakes?

After four decades advising investors, there are a few common mistakes I've seen SMSF investors make. From holding too much cash and chasing yield to overtrading and trusting tips. Are these errors costing you?

Why have Australian living standards 'fallen' and how do we fix it?

For the last few years there has been much talk of a 'cost-of-living' crisis in Australia and of 'falling living standards'. Lately this has flared up again with the pickup in inflation resulting in a renewed fall in real wages.

Will you run out of money in retirement?

Fear of running out has become a defining retirement anxiety. Why do some retirees die with substantial wealth while others deplete their nest egg? Evidence suggests the answer is more complicated than we think. 

Four options for an income investor’s next dollar

What if Australia’s golden age of dividends is ending? Rather than overhaul your portfolio, it may be worth considering where new capital can work harder. I discuss four income strategies and the trade-offs behind each.

Retirement spending is not one-size-fits-all

New data challenges the idea that Australians are underspending their super. The bigger issue may be helping retirees navigate complexity, make confident decisions and use their savings to support security, wellbeing and choice.

The missing link in the CGT debate

A little-noticed consequence of Labor’s tax changes could have implications well beyond investors’ tax bills. The issue raises bigger questions about incentives, capital allocation and the drivers of long-term economic growth.

Latest Updates

SMSF strategies

Meg on SMSFs: What do we think about reversionary pensions these days?

Reversionary pensions have long been a staple of SMSF estate planning, but are they still the best option? Meg Heffron revisits a once-clear favourite and asks whether changing super rules have shifted the balance.

The ageing ‘crisis’ has not and will not happen

Rising age dependency is frequently treated as a warning sign for economies. But when actual workforce participation is examined, a strikingly different picture emerges about ageing, productivity and economic sustainability.

Retirement

How does the 4% rule stack up?

The 4% rule has long been retirement's gold standard. But after a difficult period for investors, fresh analysis suggests a more conservative approach may significantly improve the chances of making savings last.

Shares

Four charts that expose market concentration risk

Investors have recently been rewarded for backing market leaders, but history suggests this eventually comes at a cost. Now may be the time to review whether your portfolio is carrying unintended risks beneath the surface.

Investment strategies

The case for gearing beyond property

Most Australians gear into property but ignore shares. That may be a mistake. Used carefully, geared equity strategies can enhance long-term returns, reduce cash tied up in growth assets and support retirement income goals.

Economy

Australia's $1 trillion debt pile

The headlines exclaiming that Australian government debt has hit A$1 trillion and US government debt has hit $40 trillion has turned heads, but how serious are they really? Will Australia's mix of debt create challenges?

Economy

Has 100 years of growth made us any happier?

For decades, GDP has been the benchmark for economic success, but has it made us materially happier? If happiness does not rise in lockstep with prosperity, are we overlooking what constitutes a successful society?

Sponsors

Alliances

  • ASA-Logo-RGB-ActiveGreen-web.png

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.