In previous articles of financial planning for women, we learnt about the starting steps of getting on one's own feet. Next, we understood the inherent multitude of risks women face, in the light of which, what must women do to mitigate the underlying risks.

Moving on, we will now understand how financial planning can help women in different stages of their lives. In part 7, we discussed the life stage of married women of all ages, with or without children. Here we move on to another life stage.

Life Stage: Separated but Not Divorced

This ‘separation stage’ is the last relationship bastion available before total separation i.e. divorce. Emotionally, the relationship has come to a close; however, legally this is the stage where any sort of restoration could be possible if that is still an option you wish to consider. It is a stage where you are still not sure of seeking a divorce. It is at this stage that the law provides a remedy of ‘legal separation’. In other words, a state where you are neither married nor are you divorced. You could be living together under one roof or be living separately.

Legally, such judicial separation is considered to be a 'separation from the bed and board'. This means that the couple is free to lead their own lives, within certain limits. Their conjugal duties are temporarily suspended. It is just one step before divorce. Finally, the last thing to understand about this stage is that a separation could be reversible while a divorce would totally and permanently end the marital bond.

Most of the emotional trauma at this stage is also due to financial considerations and the likely situation post separation and finally post divorce. So the question to answer is how to manage your situation if you are already emotionally separated and perhaps considering judicial or legal separation.

The first step here is to have a formal separation agreement, which would be pretty much in line with the grounds for a divorce settlement. It would include issues such as divisions of assets, child custody, support, etc. Normally such an agreement sets all the ground rules and hence it is critical that such an agreement is well drafted and worded in a manner by which both of you are on a fair ground now and for the future.

The next step is to start considering and understanding your options.

If you are living in your marital home or if you are co-owner to such a property or if you have a joint mortgage arrangement on the house you live in – it is best NOT to leave your home. It is prudent to wait till divorce papers are made and filed. The separation papers must state clearly who will retain the house and how much will the spouse retaining the house, pay the spouse. If it is proposed that the house be sold – then the split of proceeds also need to be documented in the percentage format.