All right, I'm just waiting for the timer to start. I just realized it's chopped half of my script off. Not half, that's over-exaggeration. So I'll have to look this way for a little bit, so feel free to edit it. Yeah, people don't know I'm looking to the left, but no, to the right, bitch. I suppose it doesn't really matter, does it? They know I'm human. Just waiting, waiting, waiting. Come on. It's taking a bit, come on. Hi there and welcome back to this week's show. I just realised I have my music blurring. I thought it was the neighbours. It's me playing Nine Inch Nails. Hang on, I better pause that. oh okay my adhd brain and my chemo brain um so once again you can tell that this is not ai because i have made a mistake straight up but again welcome to the show um today i want to talk about something that i hear pretty often um and it's how much does a divorce cost um but here's the problem Most people are actually asking the wrong question because a divorce and a property settlement are not the same thing. And a lot of people think that they are. And this confusion can cause people with tens of thousands of dollars years later, particularly de facto couples who technically don't even get divorced at all. They can still go through a property settlement, but they're not divorced as such. And same as people can go through a property settlement and not get divorced. So I just want to make sure that I clear up any confusion between divorce, de facto, property settlement. So as I said, I'm going to break this down in as plain English as I can possibly get with taking my lawyer hat off. So what a divorce actually is, what a property settlement is and why they are different, what people accidentally miss and some quick wins to help you avoid some expensive mistakes. So this episode is based on Australian law. I will do it a US version because a lot of our viewers are also US and our listeners, sorry. But this episode is for married couples and de facto couples. um because honestly the confusion is there for both as i said so what is actually a divorce so let's start with the word divorce a divorce is simply the legal ending of a marriage that's it it does not automatically divide your assets finalize parenting sleep super transfer the house or protect you from any future claims it is basically the legal equivalent of saying yes this marriage has come to an end there There's no chance that we are going to get back together. Let's proceed. And in Australia, the filing for a divorce is kind of like around the one K mark, but there are concessions available if you meet that. That's just the filing fee. That's not the paperwork if you get a lawyer. And if it's straightforward and amicable, some people do it themselves online. But this is where most people get caught out because they think, great, we're divorced, everything is done. Not necessarily. The property settlement is an entirely separate process. So what is a property settlement? A property settlement is the legal and financial untangling of your lives. So it includes things like houses, bank accounts, businesses, super, debts, cars, shares, inheritance, mortgages, liabilities, and sometimes future needs. And there's probably other things in there I haven't thought of. And this applies whether you were married, de facto, same sex. If you're de facto, you have to be together for at least two years. Or it applies whether you're together for twenty years. So this is the part that actually deals with who gets what. and importantly just because you verbally agree to something doesn't mean you are legally protected and i saved that one a little bit as well so that sentence alone could save you like listening thousands that was really bad english i'm trying to say was that sentence alone could save you thousands of dollars But we agreed. And I hear this one constantly as well. We've already agreed on everything. Amazing. Honestly, that's the best case scenario. But an agreement and a legally formalised agreement are not always the same thing. Because without proper documentation, someone can change their mind later. Future partners can influence things. That's a big one. As it's going to increase or decrease, disputes can arise or one person may later make a claim and you have transfer consumptions. So you have transfer, oh my gosh, you have stamp duty concessions available as well when you formalise it in consent orders or a binding financial agreement. I've got to go back because I skipped some stuff. And people are often shocked to learn that this can happen like years down the track, particularly in a de facto relationship where people incorrectly assume, well, we weren't married, so there was no claim. Very, very wrong. There are some elements that you have to reach. But yeah, de facto couples can absolutely have property settlement rights. So the biggest cost mistake people make, the biggest finding mistake I see is people spending money emotionally instead of strategically. So they spend twenty K arguing over a couch, but they don't want to consider any tax consequences. They ignore super. They're ignoring refinance capacity. They're ignoring future stability, ignoring the cost of litigation itself. And sometimes people become so focused on winning that they accidentally burn the asset pool down around them like a legal campfire because they're wasting money on legals when that money could be going to them and their family. And I get it. Separation can be really emotional. You're grieving, you're stressed, you're scared, you're angry, you're overwhelmed, you're all the things. But the more organized and informed you are early, the more money you can usually save. So quick wins to save some money. Here are some practical quick wins. So get clear on the asset pool early. So start gathering your bank statements, super balances, mortgage statements, loan documents, tax returns, business records, valuations, and all your liabilities. Basically anything money wise, any assets, any liabilities. And it's not because you're preparing for a war, although some people unfortunately are, but because clarity reduces chaos and chaos can get really, really expensive. So quickly, number two, I understand the difference between legal advice and legal work. So one of the smartest things you can do is use your lawyer strategically. There are some admin tasks that you can do yourself. There are some things you absolutely should not DIY, having said that too. Knowing the difference can save you thousands. Sometimes spending one hour getting proper advice early prevents ten hours of damage control later. quick plug here but that's exactly why i created my empowered separation program i will pop the details in the show notes if you are interested quick win number three don't assume amicable means protected you can still be respectful and formalize things properly those two things can coexist beautifully sometimes and formalizing an agreement isn't about mistrust it's about clarity and think of it like insurance you hope you never need it but you're glad you have it when it needs to exist Quick win number four, understand your time limits. This one matters for married couples, or de facto too. But for married couples, there are time limits after divorce to bring your property settlement applications. For de facto couples, it's the same. There are also time limits after separation, and most people don't realise that the clock may be ticking. And sometimes the court may not allow an exemption. So how much does a separation cost? Frustrating answer. It depends. It depends on complexity, conflict, willingness to negotiate, disclosure, businesses, children, property, and communication and a few other things as well. So some matters can be resolved relatively efficiently. And for that to happen, you might still be looking at between like ten to twenty K. If you make it to court, add some more numbers to that. A lot more. Others become prolonged litigation, like I mentioned before, and that can cost an enormous amount financially and emotionally. Please don't forget the emotional bill in this. One thing I can say confidently, though, is being informed early almost reduces costs. So fear loves the unknown and separation feels far less scarier when you understand the process. So if there is one thing I want you to take away from today's episode, it's probably this. A divorce is not the same as a property settlement. For de facto couples, just because you are not married does not automatically mean there are no financial rights or obligations if you meet the requirements. The earlier you get informed, organised and strategic, the more options you usually have. So if this episode has helped you, please share it with someone who may need it because chances are you know someone already quietly lying awake at night at two a.m in the morning sorry it's just lost it on me uh googling separation questions and feeling completely overwhelmed and i don't want people um to feel that way uh don't forget to subscribe so you don't miss any future episodes and yeah i hope that's helped and i'll catch you next week
