Rebuilding After Divorce
By Rachel O’Connor, Certified Financial Planner®
I’m writing this article from personal experience. I’ve recently been through a divorce myself, and so have many of my friends, family members, and a lot of the women I work with.
In 2024, 47,216 Australian couples were granted a divorce, and the median age for women was just over 44. In other words, a huge number of women are starting again right in the middle of their lives.
Yes, there's a lot of yuckiness in divorce. And the financial side can feel frightening, especially after years, maybe decades, of making money decisions alongside someone else.
But once you're on the other side, it’s about new beginnings.
And you don't have to have all the financials totally figured out from day one.
Take one considered step at a time, each one building the next chapter on your terms.
1. Start with your spending
The first step is knowing what your new life actually costs.
I recommend the 'Two N' system to categorise your spending.
Non-negotiables: your essentials. Mortgage or rent, bills, groceries, school fees.
Nice-to-haves: the things that make life enjoyable. Dinners out, weekend getaways, shopping sprees, streaming subscriptions.
2. Build an emergency buffer
The fridge dies. The car needs new tyres. Your dog needs an emergency operation.
Having an emergency buffer of three to six months of fixed expenses means those unexpected surprises don’t spiral into a financial crisis.
3. Sort out the unsexy stuff
Your super, your insurance and your Will require attention.
Your super may have been split in the settlement, so check where it's invested and that it still suits you.
Your life insurance and super beneficiary nominations almost certainly need updating.
And your Will/estate plan will likely need to be refreshed.
4. Think about what you really want
The money decisions get easier, and often more exciting, once you know what you’re rebuilding towards.
What do you actually want from this new chapter of your life?
Because it is likely that your priorities, the way you see the world, and what truly matters to you have changed since you said “I do”. A lot.
Speaking personally, I grew into a very different person, and what was important to me shifted significantly.
How I spend my money, what I do with my time, how I travel, where I live. The version of life I once wanted, picket fence and all, wasn’t the one I wanted anymore.
5. Work out where you’ll live
Housing is usually the largest decision, and the one with the most feeling attached to it.
Do you buy again? Rent so you have freedom and flexibility? Rent where you want to live and invest somewhere else?
There’s no single right answer. Each option has trade-offs, and the best choice is the one that fits your priorities and your long-term, not the one that looks right to everyone watching from the outside.
Work with a financial adviser to model the different scenarios to see the short, medium and long term pros and cons of each of your housing options.
6. Invest for the future you
With your spending, your buffer, your unsexy stuff and your housing sorted, you've dealt with the big-ticket items. Now you can think about the future.
Super is often the place to start. It's the most tax-effective way most people build wealth, and after a divorce it's worth checking whether topping it up makes sense for you. Contributions can lower your tax bill while growing wealth for your future.
If you've got surplus beyond that, investing in the sharemarket is the next lever. The right strategy is the one built around you: how much market movement you can stomach without losing sleep, and how long your money has to grow.
The aim is simple. A strategy that makes the most of what you've got, so future you is glad you started now.
The small wins are the most rewarding
New beginnings aren't always about the big stuff. More often, it's the smaller, more meaningful moments that matter most.
From the outside, moving from the big house with the perfect garden to an apartment might look like a downgrade. But for many women, it's the opposite. It's freedom. It's a huge sense of achievement.
It's the furniture you chose, bought and assembled yourself. It's the admin you are handling yourself. It's booking the car in, sorting the insurance, and realising you're incredibly capable.
One of the women I work with now pays for a cleaner and some help around the house, something she never had the freedom to choose before. On paper, it's small. In her life, it's enormous
Rebuild with confidence
Rebuilding your finances after a divorce can feel like a lot, especially when you're doing it on your own for the first time.
We work with women across Sydney and Australia who are navigating the financial realities of life after divorce.
Book a complimentary chat with Rachel at flourixwealth.com.au/contact-us.
At Flourix Wealth, we specialise in helping women take charge of their financial lives. Our first conversation is complimentary, and it's designed to show you what's possible.
FAQs
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Start with your spending. Before any big strategy, get a clear picture of what’s coming in and going out each month now that you’re on a single income. Download your bank transactions and categorise them so you know your real living costs. Everything else, your buffer, your housing, your investing, builds on that number.
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A common guide is three to six months of living expenses in an easy-access account, and possibly more if your income is variable. On a single income, this buffer is what lets you handle surprises without panic and avoid bad decisions made under pressure. Your monthly spending figure tells you the exact amount to aim for.
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Superannuation is treated as property in a settlement and can be split between partners. After things settle, it’s worth checking where your super is invested, whether it still suits your situation, and whether your beneficiary nominations are up to date. A financial adviser can help you make sense of what you’ve ended up with.
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It depends on your priorities, not on what looks right to others. Buying offers stability, renting offers freedom and flexibility, and rentvesting lets you live where you want while investing elsewhere. Each has trade-offs. The right answer is the one that fits the life you’re building and works for your long term.
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Almost certainly, yes. Your life insurance may have been held through your former partner, and your beneficiary nominations on super and insurance may still point to your ex. Reviewing and updating these is easy to put off but important to do.
The information in this article is general advice only. It doesn't take into account your personal objectives, financial situation, or needs. Before making any financial decisions, you should consult a qualified financial adviser. Rachel O'Connor and Flourix Wealth Pty Ltd are authorised representatives of GPS Wealth Pty Ltd, AFSL 254544 | ABN 17 005 482 726.
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