Financial separation involves untangling bank accounts, loans, and property. But one asset most couples overlook is the relationship they share with a financial adviser. A single adviser who has managed both partners' portfolios, superannuation, and investment strategy for years sits in an impossible position once a couple separates. Rockwell Family Law Services regularly works with clients who discover, often too late, that their shared adviser has continued to act on instructions from one partner while technically still representing both.
Why a shared adviser creates a conflict of interest
A financial adviser owes each client a duty to act in that client's best interests. When two clients' interests directly conflict, as they do the moment a couple decides to separate, the adviser legally cannot serve both. The Australian Securities and Investments Commission requires advisers to manage or disclose conflicts of interest. Separation is not a vague conflict. It's a direct one, and most professional advisers will acknowledge this promptly if you raise it.
The problem isn't usually bad faith. It's inertia. Advisers who've worked with a couple for a decade often continue operating as normal until one partner formally raises the issue. During that period, your combined records, portfolio valuations, and strategy documents remain accessible to the other party. Instructions given by your spouse during this window can shift money, change beneficiaries, or alter investment allocations.
What to do first
Notify the shared adviser in writing as soon as you've decided to separate. A brief, dated email stating that you and your spouse are separating and asking the adviser to place a hold on joint instructions is enough to start the process. Don't wait until you've engaged a family lawyer. Don't wait until accounts are formally split. The written notice creates a timestamp that matters if a dispute arises later about when the adviser was informed.
Ask the adviser to confirm, in writing, that they will not act on any further joint instructions and that they will not share your individual financial information with your spouse. If the adviser declines or hedges, treat that as a signal to find independent representation immediately.
Retrieving your financial records
Before formally disengaging, request a complete copy of every document the adviser holds under your name. This includes:
- Your individual Statement of Advice (SOA) and any Records of Advice
- Portfolio and superannuation account statements going back at least three years
- Insurance policy schedules held through the adviser
- Any signed authorities or powers of direction
These records feed directly into the property settlement process. A complete and accurate valuation of all assets depends on having up-to-date figures for investment accounts, superannuation balances, and insurance holdings. Missing statements from a shared adviser's files are one of the more common reasons asset valuations get contested during negotiations.
Appointing your own adviser
Once you've secured your records, engage a financial adviser independently. Choose someone your spouse has no prior relationship with. The new adviser's role during separation is specific: they're there to give you accurate figures for the property settlement process, help you understand your post-separation financial position, and advise on any immediate steps to protect your assets.
Be honest with your new adviser about the separation from the start. They need to know that some of your holdings may be subject to a property settlement order before they can give meaningful advice. An adviser who doesn't know a settlement is pending may recommend investment moves that conflict with your legal obligations.
Superannuation held through the shared adviser
Many couples manage their superannuation through the same financial adviser, particularly those with self-managed super funds. This is one of the most legally sensitive areas. If you and your spouse are both members of an SMSF, the trustee obligations and separation rules are complex and can't be resolved simply by changing advisers. Your new financial adviser and your family lawyer need to work in tandem here.
For superannuation held in industry or retail funds through the shared adviser, the key step is contacting the fund directly to update your contact details and check whether any binding death benefit nominations name your spouse. Update those nominations as soon as possible. The adviser's records aren't the authoritative source. The fund itself is.
What happens to joint investment accounts
A jointly held investment portfolio managed through a shared adviser doesn't automatically freeze when you separate. Either party can give instructions until a formal agreement or court order says otherwise. If you're concerned your spouse might liquidate holdings or transfer assets without your knowledge, speak to your family lawyer about whether an injunction is warranted. Don't rely solely on the adviser to hold the line.
The process of formally dividing those joint holdings comes later, as part of the broader property settlement. The immediate priority is ensuring neither party can make unilateral changes that disadvantage the other before a settlement is reached. Protecting your credit position during this period matters too. Unexpected asset movements or account closures can affect your financial standing in ways that flow on beyond the separation itself, and it's worth understanding how to protect your credit score during separation as part of your broader plan.
Fees and who pays them
Ongoing adviser fees charged to a joint account continue to accrue until the account is formally separated or closed. Confirm with the existing adviser how ongoing fees are being charged and request that no further fees be drawn from joint accounts pending the separation. If the adviser charges a flat retainer, get clarity on whether that retainer will be split or cancelled. These amounts rarely attract much attention during separation but they add up, and each debit from a joint account becomes part of the financial record your lawyers will examine.
Separation is rarely a single event. It's a sequence of financial steps, each one with a legal consequence attached. Getting clear of a shared financial adviser early removes one source of conflict and gives you a clean starting point for the work ahead.