Money can become one of the most confusing and confronting aspects of separation and divorce.
In this episode of Dear Divorce Diary, family law experts Darren Mort (Family Law Barrister) and Joplin Higgins (Family Law Solicitor) unpack the importance of financial literacy when navigating property settlements.
They explore why many people (particularly women) enter divorce proceedings with little understanding of their financial position, and why gaining clarity around assets, debts, and superannuation is critical before negotiating a settlement.
From balance sheets and disclosure obligations to mediation preparation and superannuation splits, this episode provides practical insights into how financial transparency shapes fair outcomes in family law matters.
What Is Financial Literacy in Divorce?
Darren and Joplin begin by explaining the concept of financial literacy and why it becomes a critical issue during separation.
Many people move through relationships with one partner managing most of the finances, which can leave the other partner unaware of:
- Bank accounts
- Debts
- Investments
- Superannuation
- Loans or liabilities
When separation occurs, this lack of awareness can create significant stress and uncertainty.
The Balance Sheet: Understanding the Asset Pool
One of the first steps in a property settlement is creating a balance sheet that lists the entire financial position of the relationship.
This typically includes:
- Real estate and property
- Bank accounts
- Credit cards and loans
- Superannuation
- Share portfolios
- Vehicles, boats or other major assets
Joplin explains that many clients are surprised by what appears on the balance sheet, particularly when they discover debts or accounts they didn’t know existed.
When Financial Information Is Hidden
Darren and Joplin discuss situations where one partner restricts access to financial documents or accounts.
Examples may include:
- Locked financial records
- Unexplained bank transfers
- Unknown credit cards or debts
- Limited access to financial information during the relationship
While this behaviour does not always amount to financial abuse, it can sometimes indicate controlling or obstructive behaviour that may become relevant in legal proceedings.
Understanding Superannuation in Divorce
Superannuation is often one of the largest assets in a marriage, yet many people know little about how it works in property settlements.
Darren and Joplin discuss:
- Obtaining accurate superannuation balances
- Using court forms to request updated super information
- The difference between standard funds and defined benefit schemes
Defined benefit funds—often found in sectors such as police, defence, or emergency services—can require special valuation methods.
The Role of Consent Orders
If an agreement is reached, it can be formalised through Consent Orders, which are submitted to the court for approval.
The court must determine whether the agreement is “just and equitable” before making it legally binding.
This ensures that property settlements reflect a fair division of assets and liabilities.
This episode highlights the critical importance of understanding your finances during a relationship and particularly during separation.
Important lessons include:
- Know your financial position
- Maintain access to financial records
- Understand your assets and liabilities
- Seek legal advice before negotiating settlements
- Ensure agreements are properly documented and approved by the court
Financial literacy can significantly impact the fairness, efficiency, and outcome of divorce proceedings.
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If you’re navigating separation, parenting arrangements, or family court processes, Dear Divorce Diary offers real conversations and practical insights from experienced family law professionals.
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