The findings show that 70% of Australians who have separated or divorced postponed their decision, often due to financial strain and the desire to protect their children. Nearly two in five (39%) delayed separation because of financial pressures, while 68% of parents stayed in relationships longer than desired for their children's sake.

Elise Fordham, Principal Lawyer at Hitch Advisory, emphasised the complexity of financial considerations in the separation process. "Separation is one of the most financially complex events a person will face, and the decisions made in those early weeks can have consequences that last decades. Early legal advice isn't a luxury; it's a safeguard," she explained.

Financial realities weigh heavily on couples, influencing not only the decision to separate but also the manner in which they do so. Over two in five (42%) of those who continued living with their former partner cited the inability to afford separate living arrangements due to the cost of living as a primary reason. This issue is particularly pronounced among younger age groups, with Gen Z and Gen Y disproportionately affected.

Fordham expressed concern over the disproportionate impact on women, who often bear the brunt of delayed separations. "What concerns me about these findings is that the 'she'll be right' attitude hits women hardest. Women are disproportionately likely to have sacrificed financial independence during the relationship, which means they have the least capacity to absorb the cost of waiting," she noted.

The report also highlights the preparatory financial moves many individuals make in anticipation of a potential separation. Nearly half (48%) admitted to making at least one quiet financial move, such as avoiding shared purchases or building personal savings without their partner's knowledge, due to uncertainty about the relationship's future.

Once the decision to separate is made, the financial impact remains significant. Legal fees average around AUD$7,481 for those who incurred them, and over one in three (35%) reported that the overall financial cost of separation was higher than expected. Unexpected expenses, such as increased living costs and the cost of establishing separate households, frequently caught individuals off guard.

The cost of a divorce can vary significantly depending on its nature. A relatively amicable separation averages around $5,311, while a contentious divorce can more than double that figure, reaching approximately $12,678. These figures encompass all associated expenses, including mediation, legal advice, financial planning, divorce application fees, and asset division implementation.

Fordham stressed the importance of early legal advice to mitigate long-term financial consequences. "We see it constantly; people stay in limbo, hoping things will resolve themselves, often because they're afraid of what the legal process will cost or reveal. But delay rarely protects you financially. More often it compounds the problem," she said.

The report also sheds light on the emotional toll of separation, with nearly half (47%) citing it as the biggest influence on whether their experience was "good" or "bad." Despite these challenges, many Australians find happiness post-separation, with around two in three (66%) reporting that they are happier now than before their separation. This improvement is more commonly reported by women, with 56% stating they are much happier compared to 44% of men.

Children play a pivotal role in shaping both the timing and experience of separation. Approximately two in five (41%) parents reported that their children's wellbeing was a key factor in their decision about whether and when to separate. Moreover, over two in three (68%) parents acknowledged staying in their relationship longer than they wanted to because of their children, with over half of those staying at least a year longer.

Fordham highlighted the importance of disentangling finances and documenting separation details to protect against future disputes. "Disentangling your finances isn't just sensible housekeeping; it's legally significant. Separating bank accounts, updating beneficiaries on your death benefits, documenting who is paying what and from which account - all of this creates a contemporaneous record that protects you if the separation date is ever disputed down the track," she advised.

The Real Cost of Separation Report 2026 underscores the profound impact of financial and emotional factors on the separation process in Australia. While the journey is fraught with challenges, many Australians ultimately find improved personal wellbeing and better relationships with their children, paving the way for recovery and new beginnings.