Dual housing and cost-of-living crises are consigning couples to remain into failing marriages.
Leading family lawyer Kylie Burke said financial issues were more than ever reshaping divorce in Australia.
Ms Burke said while the emotional toll of a breakup was tough enough, in 2025, separating couples were being confronted with the harsh realities of the cost of divorce.
“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,” she said.
“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?”
Ms Burke said for many couples, the hardest part of separation wasn’t the legal process, it was 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.”
She said these arrangements, commonly referred to as “financial flatmates”, were 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.”
Ms Burke said superannuation and unsecured debt were also now front and centre in separation negotiations.
“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.”
She said, meanwhile, personal loan and credit card debt were 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.”
Ms Burke said many couple were trying to save money with a DIY separation, but that often backfired.
“We’re seeing too many people delay getting advice or try to patchwork agreements together using online templates. One misstep can cost you thousands.”
