Looking at your roster right now.
Only going off their salaries, I would suggest that your PG is good enough to stick around in Div 2, he wont dominate by any means but should keep things going enough.
Elspeth - keep training him and assuming he will have Prod OD and maybe Marv/Wond JS/JR next season he will do well in div 2, again, he wont dominate but he'll be a keeper.Flotats could possibly keep his spot for 1 more season.
Your big men definitely need to be upgraded to $60k + to stop the inside domination you will face in Div2. You will notice that most good Div 2's will have an amazing PG and then BIG PF/C spots. (i'm generalising) this all might change next season when shot blocking comes into play and LI will essentially be less effective.
Right now with the team you have I would expect you to fight to survive relegation in any of the Div 2's.
I know we're competition for each other right now, but if you want my advice on anything, I'm more than happy to help where I can, or direct you to someone who can.