The cost of divorce

The full ramifications of divorce - Are they what you expected?

I think most of us are aware that there are definitely negative financial consequences associated with divorce. However, the full ramifications are perhaps more extreme than many would have expected, especially for marriages with children.

According to the Australian Bureau of Statistics (ABS), divorced parents aged 45-64 have 25% less assets compared to their married counterparts.

A divorced mother has 68% less super than a married mother, whilst a divorced father has 60% less Super than a married father.

It is clear that divorce severely impacts our wealth and is likely to hinder our lifestyle both during our working life and in retirement.

Unfortunately, there is no easy solution to dealing with the negative financial impacts of divorce, but there are a few traps that can be avoided.

It is a common error in the separation period for both parties involved in a divorce to neglect their finances. This can be both deliberate and unintentional. At times, either party can be reluctant to take care of certain financial obligations feeling that the other party (or at least both parties) are responsible. Also, some things are just overlooked as they don’t seem important at the time.

If you are going through a separation, as hard as it can be at the time, endeavour to work together to stay on top of your finances as best you can. It is likely to benefit both parties in the long term.

Again in the easier said than done department, the more amicable the assets are split, the less it will cost in legal fees to accomplish. Keeping the direct costs of divorce to a minimum will again help both parties in the long term.

Once the divorce is finalised and you are starting to rebuild, your financial circumstances are likely to bear little resemblance to your pre-divorce position. You will now be on a single income; you will have a different set of expenses and most likely vastly different goals.


It is advised if you experience a divorce that you completely restructure your financial plan and start working towards a secure future as soon as possible.

Author; Alex McKenzie Categories: Future Financial Services Blog

About the Author

Alex McKenzie

Alex McKenzie

Owner at Future Financial Services


  • Paraplanner at Zammit Partners Investments
  • Unit Trust Administrator at Colonial First State


  • University of Western Sydney
  • Penrith High


As a Financial Planner I help people to achieve what they would like in life. This involves helping you to identify the things in life they would like , developing plans to help achieve them and strategies to protect what you already have. We do this by providing Financial Advice to guide you through your life stages.

The financial planning process involves determining a clients current situation and financial objectives and tailoring strategies to assist in best achieving those objectives.

I am an expert in superannuation, investments and insurance, these are tools we use to help you achieve your goals.

I aim to use my knowledge of superannuation, taxation and Centrelink to efficiently use your assets and income to achieve your financial goals.

Retirement and pre-retirement planning, wealth creation, asset protection, insurance planning and estate planning are all areas of advice that I provide.

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