Any financial advisor will have witnessed the challenges of divorce and the effect it has on clients. While much of our work is tailored to retirement, savings goals, and financial growth, we are attuned to the distinct needs clients face when it comes to decoupling their cash, properties, and assets.
Divorce is undeniably one of life's most emotionally and financially taxing experiences. Still, it's an opportunity for a fresh start—a chance to rebuild and restructure your financial life in a way that empowers you for the future.
1. Take Inventory of Your Finances
The first step in crafting a solid financial strategy post-divorce is to take a comprehensive look at your assets, liabilities, income, and expenses. When you get married, there is an assumed coupling of finances. This is commonly through shared properties like homes, vehicles, and investments, as well as shared responsibilities like raising children.
As stated on our website, our expertise covers:
- Personal vs. marital property
- Valuing and dividing property
- Retirement assets and pensions
- Spousal and child support
- Splitting the house
- Tax problems and solutions
- Expert witness testimony
- Tax law and financial issues affecting divorce
2. Set Realistic Goals
Divorce can be emotionally draining, and it's easy to get caught up in the whirlwind of emotions. It's crucial to approach your post-divorce financial planning with a clear head and realistic goals. Do you still want to be a homeowner, or do you want to downsize to a rental? Does divorce allow you to move across the country, or even internationally? Does it open up opportunities to travel more?
Whether your priority is securing a stable income, purchasing a new home, or saving for your children's education, setting achievable goals will provide you with a roadmap for the future. Remember, if you share children with a spouse, there is still a shared responsibility to ensure a good quality of life. While you may be divorced, you may never shed financial responsibility.
3. Seek Professional Guidance
Navigating the financial aspects of divorce alone can be overwhelming, and it’s why seeking guidance from a certified financial advisor is invaluable.
An advisor can help you understand the implications of dividing assets, navigate tax implications, and develop a sustainable budget for your new lifestyle. We’ve discussed Lifestyle Creep in the past — do your aspirations line up with your post-divorce lifestyle situation? Or is spending how you did in marriage affecting your long-term savings?
Consider this as you navigate the divorce process.
Divorce may mark the end of one chapter, but it also signifies the beginning of a new journey: a journey toward financial empowerment and a fresh start. Being guided through this experience won’t just eliminate stress; it will set the foundation for your financial future.
Learn more about your financial options in divorce at https://www.strategicfinancialdivorce.com/