Planning Through Divorce: 5 Considerations to Safeguard Your Future
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Although divorce can create unexpected and uncomfortable financial complexities, trusted advisors can ease the burden of these life transitions. A family counselor and personal therapist can help navigate a grounded response to normal changes: change of lifestyle, home, income, friendships, new definitions of family, as well as shifts in personal identity. A great Certified Financial Planner can help design your unique wealth strategy by discussing the relevant wealth planning elements such as transitions, income generation, cash flow & budgeting, asset structure, asset location, and debt optimization.
What You May Be Thinking ABOUT
How will I handle current debts and debt costs incurred while separated?
Will divorce affect my standard of living and long-term goals?
What impact will my decisions today have on my financial future?
Who can help me make decisions about the divorce settlement objectively, not emotionally?
How can I control or minimize the cost and impact of divorce?
How will I handle current debts and those incurred while separated?
how your team helps
Understand the process and set expectations, as well as serve as a sounding board for financial questions.
Coordinate plans and ideas with your professional advisors, like your lawyers, mediators, and family counselor.
Organize and update documents and key information like retirement and life insurance beneficiaries.
Assess settlement proposals and evaluate the future financial planning implications.
Consider the financial impact of separation or divorce, including the value of your assets, taxes, and insurance.
Rebuild your cash flow plans including adjustments to lifestyle, child care, commuting
Building reserves for legal expenses, housing and relocation decisions.
Adapt your investment plan as your ability, willingness, and need to take risk may shift during and after the transition.
Reassess your goals, both short and long term, and identify your priorities throughout this transitional phase.
Make adjustments to funding long-term goals like retirement, education alongside shorter-term goals like a new home or a change in career.
Create a plan after the divorce that focuses on the future you envision for this new phase of your life.
Resources to explore
If you’re navigating a divorce, we recommend downloading our Free Tools for the People. These helpful reflection tools can help you explore your newly developing relationship with your wealth, i.e. relationships, money, skills, time, and well-being.
Some of these books could be supportive for you and your family:
Conscious Uncoupling: 5 Steps to Living Happily Even After Katherine Woodward Thomas (2016)
The Financially Smart Divorce: Three Steps to Your Ideal Settlement and Financial Security in Your New Life J.A. Licciardello CDFA (2016)
Prosperity After Divorce: Take Charge of Your Finances & Create the Life You Really Want Using LifeStyle Re-Design Planning Michelle Jacobik (2017)
How to Make the Best Financial Decisions During Divorce Violet Woodhouse & Dale Fetherling (2011)
Mom's House, Dad's House: Making Two Homes for Your Child Isolina Ricci PhD (1997)
Helping Your Kids Cope with Divorce the Sandcastles Way Gary Neuman (1999)
It’s Not Your Fault, Koko Bear: A Read-Together Book for Parents and Young Children During Divorce Vicki Lansky (1998)
nolo.com Resource for legal matters, including separation and divorce.
