If my best friend told me she was separating from her spouse, this is what I would tell her.

1. Put in place a holding will and enduring power of attorney

2. Call or meet with your next of kin (parent, sibling, child, friend) to share your wishes in the event you lose capacity or die

3. Update your superannuation nomination

4. Update your life insurance nomination

5. Get specialist family law advice, and then (a) consider severing any land held jointly; and (b) consider cancelling second cards or releasing bank guarantees

It’s important you make these changes on separation, as your existing documents and nominations (often to your spouse) will stay in place until your divorce is official.

They are also not hard to update again if you decide to stay together.

It’s better that your affairs reflect your current wishes.

I offer a FREE15 minute phone call, which may be helpful if you have any questions https://calendly.com/g-law/free15

Your legacy

It is so important to review your will and enduring power of attorney on separation.

You may not know if you will get back together, stay separated, or get divorced. 

It’s a really difficult and uncertain time.  There is so much to be worked out and you probably don’t know where to start.

That’s why I recommend you put in place a holding will and enduring power of attorney.

These can be simple documents that let you choose who your key decision makers are and where your wealth goes if you die.

It’s highly likely that you no longer want your spouse or partner to:

• decide what happens to you in a medical emergency;

• make financial decisions on your behalf; or

• receive 100% of your wealth if you die.

If you go down the divorce road, then on divorce your will and enduring power of attorney are revoked. 

In the meantime, while you are separated, your existing will and enduring power of attorney are still effective.

So, now is the time to get your new wishes in place.

Your finances

          Superannuation & life insurance

You need to consider any nominations you may have in place for your superannuation accounts and life insurance policies.

Is your spouse or partner still the person you want to benefit if you die?

If not, you need to update your nominations.

For superannuation you can nominate your children, anyone financially dependant on you, or your legal personal representative (your estate).

I always cover off on these nominations as part of my clients’ estate plan & getting their new will in place.

           Jointly held assets & accounts

Many couples hold land, bank accounts and shares jointly.

It’s possible to hold land 2 different ways:

1. as joint tenants, which means if you die the asset AUTOMATICALLY transfers to your spouse or partner on death; or

2. as tenants in common, which means you still hold the asset equally, but if you die your 50% share of the asset will go to your estate and beneficiaries according to your will.

There is a really easy and cost-effective way to change any joint ownership of land from joint tenants to tenants in common. 

It’s called severing the title.  You can do this on your own, without consent from your spouse or partner.

This is a step you may wish to take as a holding step and doesn’t change anyone’s underlying ownership.

Financial Liabilities

It’s really important to consider any financial facilities that may be used by your spouse or partner to borrow money.

Consider whether it’s relevant for you to continuing providing:

• second cards held by your spouse or partner, for accounts in your name (credit cards, store cards, fuel cards); and

• security for debts by way of bank guarantee.

Before making any changes, I recommend getting advice from your family law specialist. 

You don’t want to make the mistake of cancelling your security and prompting a negative effect on your combined wealth.

It may be these steps need to be taken as part of your property settlement.