Divorce can quickly change your financial situation. Bills that were once paid using 2 incomes may now need to be covered by 1. At the same time, you may still be working out what happens to your home, savings and other finances.
According to the Australian Bureau of Statistics, more than 49,000 divorces were granted in Australia in 2025.
Surviving financially after divorce starts with getting a clear picture of your income, expenses and debts. From there, a realistic budget and an understanding of your housing options can make the months ahead easier to manage.
Here are 6 areas to consider when managing your finances after separation.
1. Focus on your immediate financial priorities
After separation, it can be hard to know what to deal with first. A good starting point is separating the costs that need to be covered now from the decisions that can wait until you know more.
Understand which expenses can’t wait
Work out how you’ll cover your everyday living costs while you sort out your finances.
These may include:
- Mortgage repayments or rent
- Groceries, utilities and transport
- Childcare and school expenses
- Insurance and existing loan repayments
- Temporary accommodation or moving costs
If you have a joint mortgage or credit card, separating does not automatically remove either person’s responsibility for the debt. You may both remain responsible for the repayments until the lender officially agrees to a change or the debt is paid off. A mortgage broker can help you speak with your lender about your loan options, and you may also need legal advice before making changes.
ASIC’s divorce and separation financial checklist can help you understand which accounts, documents and financial arrangements you may need to review.
Know what can wait
Decisions, involving your home, investments or long-term savings may need to wait until you have more information.
For example, you might want to keep the family home but first need to know how your assets will be divided and whether you can afford the mortgage on one income.
2. Understand what living on one income really costs
Even if your pay stays the same, your household budget may look very different after divorce.
Costs that used to be shared may now be yours to cover. You may also have new costs, such as rent, childcare, insurance or transport.
Some of these costs may take time to become clear.
Allow for costs that are still uncertain
After separation, some payments may start, stop or change. You might not yet know exactly how much money you’ll have coming in or going out each month.
It can help to create 2 versions of your budget. One showing the income and expenses you know about, and another including payments or costs that are still being worked out.
This shows what money you have available now and what might change later.
A Budget Planner Calculator can help you get a clearer picture of your monthly income and expenses.
3. Consider what keeping or selling the family home would mean financially
After divorce, one of the biggest decisions may be what to do with the family home. It’s not just about who wants to stay, but whether keeping the property is affordable.
There are a few options to consider, each with different costs.
Option 1: Keeping the family home
You may want to stay in your home, especially if you have children or want to remain in a familiar area.
However, keeping the property may mean refinancing your mortgage, paying your former partner their share of the property or taking on more household expenses yourself.
Your lender will usually need to check whether you can afford the mortgage on your own by looking at your income, expenses and existing debts.
Even if you have a lot of equity in your home, that doesn’t automatically mean you’ll be able to afford the repayments on your own.
Option 2: Selling the family home
Selling the property may free up money that can be divided as part of your property settlement or used towards your next home.
However, the sale price isn’t necessarily the amount you’ll walk away with.
For example, if your home is worth $900,000 and you still owe $550,000 on your mortgage, you have $350,000 in equity before costs.
You’ll also need to account for selling costs, any other debts and how the remaining money will be divided as part of your property settlement.
This means you may receive less than you initially expect.
Changing your home loan
If you’re considering changing your home loan, understanding the refinancing process can help you see what’s involved, what lenders look at and what costs may apply.
Legal advice is also important when working out who owns the property, how it will be divided and what each person is responsible for.
4. Buying a home after divorce: assess affordability beyond the deposit
Buying a home after divorce may give you the chance to settle into a new place. However, buying on your own can be quite different from buying with a partner.
Even if you have savings or money from your property settlement, you may not be able to borrow as much as you could before.
What affects borrowing capacity after divorce?
When you apply for a home loan, lenders look at your financial situation to work out how much you may be able to borrow.
They generally consider:
- Your income and how regularly you’re paid
- Any existing loans, credit cards or other debts
- Your everyday living expenses
- Whether you have children or other dependants
- Any child support you pay or receive, depending on the lender’s rules
- Your savings and how much deposit you have available
Having enough money for a deposit doesn’t always mean you’ll be able to borrow the amount you need, because lenders also need to check whether you can afford the ongoing repayments.
The additional costs of buying again
The deposit isn’t the only cost to think about when buying another home.
You may also need to pay stamp duty, conveyancing fees, property inspection costs and moving expenses.
After separation, there can be other costs too, such as buying furniture, setting up a new household or keeping some savings aside for unexpected bills.2
All of these expenses can affect how much money you have left after your property settlement and what you can comfortably afford to spend on your next home.
Renting can also be part of the picture
Purchasing immediately is not the only possible housing outcome.
Some people rent while their property settlement is being finalised, their income changes or they establish a clearer understanding of their financial position.
What’s important to consider is how each housing option fits with your current income, ongoing expenses, and financial responsibilities.
5. Look beyond property when reviewing your financial position
The family home is often a big focus during divorce, but it’s not the only thing to consider when sorting out your finances.
Your superannuation, investments, insurance, personal debts and other assets may also need to be reviewed as part of your property settlement.
Consider the longer-term impact of financial decisions
The financial decisions you make during a property settlement can affect your finances for years to come.
For example, keeping more money in property rather than superannuation may leave you with different amounts of money available now and in retirement.
Superannuation is generally money you can’t access until you meet certain conditions, so it’s not the same as having savings in your bank account.
It’s also worth reviewing your insurance, will and superannuation beneficiaries. These may need to change now that your circumstances are different. A financial adviser can help you understand how different decisions may affect your future finances, while a family lawyer can help with the legal side of your property settlement.
6. Rebuild financial stability with realistic expectations
Getting your finances back on track after divorce doesn’t necessarily mean getting back to where you were before.
Your income, expenses and financial goals may have changed, so the focus is on understanding what you can afford now and what you may be able to work towards over time.
Allow room for unexpected expenses
Having some savings set aside can help when unexpected expenses come up, like car repairs or medical bills.
How much you can save will depend on your income and expenses. If you’re starting again financially, even small, regular savings can help build a buffer over time.
If you’re struggling to cover your bills, there may be support available. Some lenders and service providers offer financial hardship assistance, depending on your circumstances. You can also access free financial counselling through the National Debt Helpline.
How a UFinancial adviser can help with finances after divorce
Divorce can affect more than one area of your finances.
Your home loan, everyday expenses, debts, superannuation and future financial goals can all be connected. This can make it difficult to know where to start or which decisions to focus on.
UFinancial’s financial planning team can help you understand your financial position and talk through your options based on your circumstances.
If you’re thinking about keeping, selling or buying a home, our lending team can also help you understand your borrowing and refinancing options. For property settlement agreements and other legal matters, you’ll still need advice from a lawyer.
Explore our financial advice and planning services to see how we can help. Financial planning advice may involve fees, which will be explained before you proceed.
Surviving financially after divorce isn’t about having everything worked out straight away. It’s about understanding where you stand, knowing your options and getting the right support to make decisions that work for you.
Book a chat or call 1800 835 626.
Frequently asked questions about surviving financially after divorce
Does getting divorced affect your credit score?
Divorce itself does not automatically lower your credit score in Australia. However, existing joint debts and repayment arrangements may continue to affect your credit history. Missed payments, defaults or new credit applications can also influence your credit report. Understanding which credit commitments remain active can help clarify your financial position after separation.
Can child support be included as income when applying for a home loan?
Some Australian lenders may consider child support payments when assessing borrowing capacity, subject to their lending policies and evidence requirements. The amount, history and expected continuation of payments may be relevant. Not all lenders assess this income in the same way, and including child support does not guarantee loan approval.
Is money received through a divorce property settlement always tax-free?
Not necessarily. Tax consequences depend on the assets involved, how they are transferred and the applicable rules. Certain transfers between former partners may qualify for tax or duty concessions, but eligibility depends on the circumstances. Legal and tax advice can help establish the potential consequences before arrangements are finalised.
What if there isn’t enough money to pay for financial advice after divorce?
Free financial counselling is available in Australia for people experiencing financial difficulties, including problems with debt and household expenses. This is different from licensed personal financial advice, which may involve fees. Community legal centres and state or territory Legal Aid services may also provide assistance, depending on eligibility and the type of legal issue.
General advice disclaimer
The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.
