The emotional toll of a breakup is tough enough. But in 2025, separating couples face something even more confronting: the cost.
With mortgage stress rising, rents at record highs and family budgets stretched, a growing number of Australians are discovering they simply can’t afford to separate. For many, the legal and financial fallout is far more complex – and urgent – than ever before.
Dividing assets is just one part of the picture now – it’s also about ensuring both parties can afford to live, support the children and plan for their financial future. The question we’re hearing more and more is: Can either of us afford to live after this?”
Housing stress is the breaking point
For many couples, the hardest part of separation isn’t the legal process – it’s figuring out where to live.
The old model, where one person keeps the home and the other rents nearby, is increasingly off the table. With rents up 30 percent in some capital cities and lending conditions tight, many people are being forced to stay under the same roof – even after they’ve split.
These arrangements, commonly referred to as “financial flatmates”, are fraught with emotional and legal risk. It might feel like a short-term fix, but without proper agreements in place, they often lead to major conflict down the track.
Superannuation and debt take centre stage
Superannuation and unsecured debt are now front and centre in separation negotiations, says Burke.
“For many Australians, super is one of the biggest assets they hold – especially for women who’ve taken time out of the workforce. It’s no longer a footnote in settlements and needs to be approached strategically.”
Meanwhile, personal loan and credit card debt are on the rise. People are entering separation with more financial baggage than ever. Who pays what, and how, needs to be legally documented or it can get messy fast.
Prioritising children amid financial instability
In 2025, we’re seeing more disputes over school fees, medical costs and even basic shared-care logistics – because everyone is under pressure.
Formalising arrangements through consent orders or binding child-support agreements is recommended: relying on a handshake deal in such a volatile economy is a legal and financial risk.
Don’t go it alone
Trying to DIY a separation might seem like a money-saver, but it often backfires. We’re seeing too many people delay getting advice or try to patchwork agreements together using online templates. One misstep can cost you thousands.
Even one consultation with a specialist family lawyer can save time, money and emotional stress in the long run.
To help people take the first steps with clarity, check out the The Smart Split Checklist – a free, downloadable guide to protecting your finances, family and future during a separation.
About Kylie Burke
Kylie Burke is an accredited specialist in family law and a partner at Burke Mangan Lawyers. With over 15 years of experience, she is a leading voice in complex family law matters.
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