Rebuilding Wealth and Confidence: Smart Superannuation Moves After Divorce or Separation

Divorce or Separation is one of life’s most significant events. It often brings both challenges and opportunities – a time to reassess priorities, rebuild wealth and restore confidence in your financial future.

At MBA Financial Strategists financial advisers such as Laura Drost work with people who are navigating life after separation. This summary outlines key practical steps to assist you commence rebuilding wealth through informed decisions about your finances following divorce or separation.

Understanding your financial position

The first step after a relationship breakdown is to gain a clear picture of your financial position.

Start by gaining an understanding as to your new financial position, this includes understanding the value of your property, savings, investments, superannuation, vehicles and any outstanding debts.

Reviewing your financial position:

Following this, consider reviewing:

• Understanding new living expenses
• Your long-term financial goals and objectives following your change in circumstances
• Reviewing any personal protection insurance policies to ensure you are financially protected in the event of your inability to work due to illness or injury, or that any children are financially protected in the event of your premature death
• Building superannuation strategies into a broader financial plan
• Estate planning considerations such as death benefit nominations and updating your will

Once you have defined your new goals you may consider a range of wealth building strategies such as investing in or outside of superannuation

Wealth Building considerations:

If investing inside superannuation it can play an important role in rebuilding following a relationship breakdown. Whether you have finalised a settlement or are setting new goals, understanding how to manage your superannuation after divorce or separation can help you gain clarity and control.  Superannuation should evolve as your circumstances change.

Key considerations include:

• Reviewing your fund and investment strategy may help ensure your money is working towards your new goals and risk comfort level
• Ensure you are harnessing current contribution rules:
  • Salary sacrifice contributions – direct part of your pre-tax income into your super to grow your balance and reduce taxable income
  • Concessional contributions – the annual concessional cap is $30,000 (as of 2025) and includes employer and salary sacrifices contributions
  • Non-concessional contributions – the annual non-concessional cap is $120,000 (as of 2025) and includes after-tax voluntary contributions which may help rebuild your super faster, especially if you have received a property settlement or business proceeds.
  • Catch-up contributions – if your balance is under $500,000 as of 30 June from the previous financial year, you may be able to use unused concessional limits from the past five financial years to make a larger one-off contribution
  • Downsizer contributions – if you are aged 55 or older, you may contribute some of the proceeds from the sale of your home into super to potentially strengthen your retirement position.
  • For more information on contribution limits and eligibility, visit the Australian Taxation Office website.
• Investing outside of superannuation may include property, shares or other financial products to assist you in achieving your new financial goals.

Review your personal protection strategy:

• Review any insurance policies held within superannuation to ensure they remain suitable given your changing circumstances:
  • Life cover to protect any dependants in the event of your premature passing
  • Total and Permanent Disability (TPD) cover to protect yourself if you suffered a health condition rendering you unable to ever return to work again.
  • Income protection to ensure part of your income can continue if you are unable to work due to illness or injury and don’t need to rely on family and friends, or the government for financial support.
  • Trauma insurance to protect you in the event of sudden traumatic illness.

Rebuilding Confidence Through Financial Clarity

Rebuilding wealth after divorce or separation is not only about restoring finances but also about regaining confidence and control over your future. With the right advice and a well-structured financial plan, your change in relationship circumstances may become the foundation for long-term independence.

At MBA Financial Strategists, our financial advisers assist people make informed, practical financial decisions that align with individual goals and values.

If you are ready to review your financial plan, contact the practice for a confidential conversation with an experienced financial adviser.

GENERAL ADVICE WARNING
MBA Financial Strategists (ABN 13 008 285 756) and Laura Drost are authorised representatives and credit representatives of Akumin Financial Planning Pty Limited ABN 89 051 208 327, Australian Financial Services Licence and Australian Credit Licence No 232 706.

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.