What Happens to Your Data With AI Separation Tools?

Using an AI tool to make sense of a property settlement can bring real clarity at a stressful time. It is also completely natural to wonder where your information goes once you type it in. The good news is that not all tools work the same way. Some are built for general conversation, and others, like Separately, are built specifically to handle sensitive financial details with care. This guide explains what tends to happen behind the scenes, so you can make a confident, informed choice.

How general AI chatbots use your information

Most of us have used a general-purpose AI chatbot such as ChatGPT or Gemini. They are genuinely useful for brainstorming, drafting and quick questions. But the way they are designed has real implications for privacy when the topic is something as personal as your finances during a separation.

These large language models improve by learning from data, and for everyday personal accounts that can include your conversations. For example, OpenAI uses content from consumer ChatGPT accounts to help improve its models by default, and Google may do the same with Gemini Apps activity. In both cases you can usually turn this off in your settings, and business or enterprise versions are typically not trained on by default. The point is simply that the default for a free or personal account often leans towards your inputs being used.

There is a second consideration. To check quality and safety, a small sample of conversations may be looked at by trained human reviewers. Google notes that conversations selected for human review can be kept for up to three years and are not removed when you delete your activity, which is why it advises against entering confidential information you would not want a reviewer to see. None of this makes these tools unsafe for general use. It simply means the specific, private details of your separation deserve more thought before you share them.

How a purpose-built tool approaches privacy

A tool built for property settlement works to a different goal. It is not trying to train a general AI. It is trying to produce one thing for you, an assessment of how your situation might be viewed, in a secure and private way. Your information is a private input, not training material. Here is what you can reasonably expect from a purpose-built tool.

Your data is not used to train AI models

This is the most important distinction. A dedicated separation tool should state plainly that your personal and financial information will not be used to train AI models. Your details are used only to generate your assessment, and nothing else.

You should not need to identify yourself

To produce a useful assessment, a tool generally needs the financial figures, not your name, your former partner's name or your address. Removing those identifying details is a privacy-protective design choice. If a tool asks for more identifying information than the task needs, it is fair to ask why.

Your data should be kept secure

Under the Australian Privacy Act 1988, organisations covered by the Act must take reasonable steps to protect personal information from misuse, loss and unauthorised access (Australian Privacy Principle 11). In practice, look for encryption of your data both in transit, as it travels over the internet, and at rest, while it is stored.

Where your data is stored matters

The Privacy Act also sets rules for sending personal information overseas. Under Australian Privacy Principle 8, an organisation that discloses your information to an overseas recipient generally has to take reasonable steps to ensure that recipient handles it consistently with the Australian Privacy Principles, and can remain accountable if it does not. A tool that stores Australian data in Australia keeps things simpler and clearer for you.

You should be able to delete your data

You should stay in control of your information. The Privacy Act expects organisations to destroy or de-identify personal information once it is no longer needed (also part of Australian Privacy Principle 11). A trustworthy tool will let you delete your account and associated data without a difficult process.

A short privacy checklist for any AI tool

Before you enter personal or financial details into any online service, it is worth a few minutes with its privacy policy. You do not need to be a technology expert to ask good questions.

• Where is the company based? An Australian organisation covered by the Privacy Act is bound by Australian privacy rules.
• Is my data used to train AI models? Look for a clear statement. If it is not there, check the settings, and assume the default may allow it.
• Who can see my information? The policy should explain whether staff or third parties can access your data, and when.
• How is my data protected? Look for encryption in transit and at rest.
• Can I delete my data? You should be able to remove your account and information.
• Does it ask for more than it needs? For an assessment, financial figures are usually enough.

A note on making it official

An assessment from Separately is general information to help you understand your situation. It is not legal or financial advice for your specific circumstances. To turn an agreement into something legally binding, there are two main paths in Australia: applying to the Federal Circuit and Family Court of Australia for consent orders, or entering a binding financial agreement. For a financial agreement to be valid, each person must receive independent legal advice before signing. Even with consent orders, the Court suggests getting independent legal advice about the effect of the orders you propose. Separately partners with law firms, and this is exactly the kind of step a lawyer can help with.

Key takeaways

• General AI chatbots may use personal-account conversations to improve their models by default, though you can usually turn this off.
• Some conversations can be seen by human reviewers and retained for a period, so think carefully before sharing sensitive details.
• A purpose-built tool should not use your data for AI training and should only ask for what it needs.
• Look for encryption, Australian data storage and an easy way to delete your information.
• Formal settlements need independent legal advice through consent orders or a binding financial agreement.

Your information is yours. Taking a moment to understand how a tool handles it is one small way to feel more in control during a time when a lot can feel uncertain.