Separation is one of life’s most emotionally and financially challenging experiences. Whether the split is amicable or not, one of the biggest concerns people face is how to protect their assets during separation.
At Martens Legal, we specialise in helping individuals and families navigate separation with clarity and confidence. This guide will walk you through the five most important tips to safeguard your assets during separation – with a focus on reducing stress, avoiding unnecessary conflict, and ensuring long-term financial stability.
Why Protecting Your Assets During Separation Matters
When you separate, your financial world shifts. Joint accounts, property ownership, superannuation, and shared responsibilities can suddenly become sources of stress and uncertainty. Without the right advice and legal safeguards in place, you risk losing more than just money. You may also face emotional strain, future financial insecurity, and ongoing disputes that could have been avoided with proper planning.
Protecting your assets during separation is not about being combative. It’s about being clear, informed, and strategic – so you can move forward on your own terms.
Tip 1: Understand What You Own and What You Owe
The first step in protecting your assets is getting a clear picture of your financial situation. That includes:
- All property and real estate
- Bank accounts (joint and individual)
- Superannuation
- Shares or investments
- Business assets
- Debts and liabilities
Start by gathering documentation for everything you own and owe. This includes loan statements, tax returns, bank statements, and superannuation balances. Understanding your net position is essential before any negotiations can begin.
At Martens Legal, we guide you through this process with care, ensuring you have the full financial picture from the outset.
Tip 2: Avoid Making Emotional Decisions
It’s completely normal to feel overwhelmed during a separation. However, emotional decisions – like giving away assets to “keep the peace” or acting out of spite – can lead to long-term financial consequences.
Before making any big decisions, ask yourself:
- Will this benefit me in the long run?
- Have I received legal advice?
- Is this action in line with my financial goals?
Keeping emotions in check is not about suppressing how you feel. It’s about pausing, getting advice, and making empowered choices based on your future – not just your present emotions.
Tip 3: Secure Your Financial Accounts and Records
When a relationship ends, shared finances often remain entangled for longer than expected. To safeguard your assets, you may want to consider the following practical steps after you have received legal advice tailored to your situation:
- Agreement with your former partner around contributing to joint expenses
- Opening a new bank account in your name only
- Changing passwords to online banking and financial apps
- Canceling or splitting any joint credit cards or accounts
- Notifying your bank and financial institutions of the separation
- Updating your will, superannuation nominations and insurance policies
Being proactive helps protect your personal funds and ensures there are no surprises later. It also reduces the risk of unauthorised transactions or complications during the asset division process.
Tip 4: Get a Consent Order or Binding Financial Agreement
One of the most effective ways to protect your assets after separation is to legally formalise your property settlement.
You have two main options:
- Consent Orders: These are court-approved agreements that make your property and financial settlement legally binding without going to court.
- Binding Financial Agreements (BFAs): These are private contracts between you and your former partner, prepared and signed with the help of independent legal advice.
Both options provide security and clarity, but which one is right for you will depend on your situation. At Martens Legal, we help you understand the benefits of each and guide you through the process.
Why is this important? Without a formal agreement, your ex-partner could still make a claim against your assets in the future – even years after separation.
Tip 5: Prioritise Your Long-Term Financial Security
In the middle of a separation, it’s easy to focus on the immediate – who stays in the house, who gets the car, or who pays which bills. But the smartest move is to also look ahead.
When reviewing your settlement options, consider:
- Will I be financially independent once the split is final?
- What are my superannuation entitlements?
- Do I need a plan for spousal maintenance or future expenses?
- How will this affect my future credit rating or borrowing power?
The decisions you make now will impact your financial wellbeing for years to come. That’s why strategic planning is at the heart of every case we handle at Martens Legal.
What Happens If I Don’t Formalise My Asset Division?
Many people assume a verbal agreement is enough – especially if things are amicable. Unfortunately, that’s not always true.
Without a formal agreement, your former partner can still bring a claim to court. They could seek a portion of assets you’ve worked hard to rebuild – including future earnings or inheritance.
Legal documents like Consent Orders or BFAs give you peace of mind and prevent surprises later.
Assets During Separation: Final Thoughts
Separation does not need to mean chaos. With the right support, you can protect what matters most and take back control of your future.
At Martens Legal, we approach each client with care and strategy. Our team provides clear, step-by-step guidance that makes the legal side of separation less intimidating and more empowering.
If you are navigating a separation or want to plan ahead with confidence, we’re here to help you move forward with clarity and calm.
Assets During Separation FAQs
What is the difference between a Consent Order and a Binding Financial Agreement?
A Consent Order is approved by the Family Court and becomes a legally enforceable court order. A Binding Financial Agreement is a private legal agreement that does not go through the court but is still binding if done properly. Both require legal advice but serve different purposes depending on the situation.
Can my ex claim my assets after separation if we don’t formalise anything?
Yes. If there is no legally binding agreement in place, your ex may still make a claim – even after you’ve divided everything informally. That’s why we always recommend formalising asset division through a Consent Order or BFA.
Do I need a lawyer if we agree on everything?
Yes. Even in amicable separations, each party must receive independent legal advice to ensure any agreement is legally binding and fair. A lawyer will also help you avoid common mistakes and protect your interests.
How long do I have to divide assets after separation?
In most cases, there is a time limit of 12 months after divorce or two years after the end of a de facto relationship to bring a property settlement claim. However, the sooner you formalise things, the more secure your financial future will be.
