Will Divorce Ruin Me Financially?

Concerns about financial stability are common when facing a divorce, particularly when there is uncertainty around how assets, income and future needs will be divided. While divorce can have significant financial implications, the outcome depends on a range of factors considered by the Family Court of Western Australia. In this guide, the team at O’Sullivan Davies explains how financial settlements are determined and what may influence your financial position after divorce.

Once parties have divorced, this does not determine how their property, financial or parenting arrangements will be resolved following the breakdown of the marriage, nor does it automatically destroy either party’s financial position.

Under the Family Law Act 1975 (Cth), divorce is a separate legal process from property settlement, spousal maintenance and parenting arrangements. A divorce simply means that the marriage has legally ended and that the Court is satisfied there has been an irretrievable breakdown of the marriage. The granting of a divorce does not resolve or make any final decisions about the parties’ financial circumstances going forward.

Property and financial matters are determined independently and may be finalised before or after a divorce. When making final orders, the Court must determine what is just and equitable. This involves considering the parties’ contributions at the start of the relationship, throughout the marriage, and after separation, as well as their future needs, such as earning capacity, primary care of any children, and each party’s health moving forward. The aim is to ensure neither party leaves the marriage in an unfair financial position.

The Court encourages parties to make genuine attempts to resolve their matters through negotiation, mediation or other forms of dispute resolution, as these processes can significantly reduce legal costs and financial stress associated with separation.

Therefore, while separation and related legal processes can involve legal costs and financial adjustment, the law is structured to promote fair and balanced outcomes. With proper legal advice and a willingness to engage in alternative dispute resolution, divorce does not need to be financially devastating.

Speak with an Experienced Divorce Lawyer

If you are concerned about the financial impact of divorce and how it may affect your future, the team at O’Sullivan Davies can help. Contact our experienced divorce lawyers today for practical advice and support tailored to your situation.