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5 Quick Tips From Financial Planner's That Help You Secure Your Future After Divorce

A financial planner shares tips with a woman seeking a divorce.
Consulting A Financial Planner During Divorce Can Help You During Negotiations.

Divorce is a significant life change, and it's crucial to approach this new beginning with confidence, education, and a supportive community.

Everyone who goes through a divorce faces many hurdles, from the emotional labor of managing a household shift to the financial intricacies of separating shared assets.

If you're feeling overwhelmed, take a deep breath and remember that knowledge and action equals power. The Divorce Planner's goal is to help you stay focused on what's in your control, take action on your financial preparation, and help you build emotional resilience. All three of those things go hand in hand and put you in the best position to move through a divorce successfully.

These 5 tips from financial planners are a perfect place to start your financial planning education. Short and sweet, the tips offer ways to jump start your divorce prep process with a focus on your future:

Tip 1: Prioritize Financial Literacy

Assessing your current financial realities and anticipating how they'll change after divorce is the number one thing you can do to prepare for the major changes that divorce will bring. If you haven't been the primary manager of finances in the marriage or may feel overwhelmed by the complexity of their financial situation during divorce. Don't worry, you can get access to important information now so you take your next steps armed with the numbers of your life. During the discovery process each party will have to share all financial information.

Do This:

  • Educate Yourself: Start by familiarizing yourself with your current financial situation—this includes understanding all debts, assets, and income streams. Your marital tax returns will provide you with a wealth of information. Start there. Make a list of what you can get your hands on, and keep a running list of information and accounts that you can't get access to.

  • Seek Professional Advice: Consider consulting with a financial advisor specializing in divorce to help guide you through the process. The Divorce Planner's digital tools and resources get you started so you have all your necessary account and monthly budget information at your fingertips when meeting with financial planners.

Pro Tip: Can't get access to financial information? Learn how to find everything you need in this post How To Find Hidden Accounts & Assets when preparing for divorce.

Tip 2: Don't Overlook Long-Term Financial Planning

It's easy to get caught up in the immediate costs and outcomes of divorce, losing sight of long-term financial needs, such as retirement. Those need to be taken into account during negotiations. The value of a dollar in a savings account is not equal to a dollar in a retirement account.

Do This:

  • Future-Forward Budgeting: Create a financial plan that includes future living expenses and potential changes in income or lifestyle. This monthly budget calculator prompts you with every possible expense and does the math for you.

  • Retirement Focus: Ensure that retirement accounts and pension plans are adequately addressed in the divorce settlement.

  • Start logging all of your marital and individual assets and their value. The post 7 Ways To Protect Your Assets During Divorce is a great place to start.

Tip 3: Don't Fight to Keep the Family Home Without Understanding The Actual Costs

The emotional attachment to the family home might overshadow practical considerations like the ability to maintain it financially on a single income. If you want to keep the family home, you need to read 4 Questions You Need To Answer If You Want To Keep The Family Home.

Do This:

  • Practical Assessment: Evaluate if it's financially viable to keep the home, considering upkeep, taxes, and mortgage payments.

  • Explore Alternatives: Sometimes, selling the home and splitting the proceeds can offer a cleaner financial start for both parties.

Tip 4: Prioritize Self-Care and Build A Support Systems

Yup, even financial planner's recommend self-care during divorce. Why? Because the emotional toll of divorce can be draining, causing some to neglect their well-being and underestimate the power of a support system. If you aren't taking care of your emotional health during divorce you'll easily get thrown off track, which can have a negative and lasting affect on your financial future.

Do This:

  • Prioritize Self-Care: Engage in activities that boost your physical and emotional health.

  • Build Your Tribe: Lean on friends, family, and support groups who understand what you’re going through. The Divorce Planner's social media is a great place to find support, understanding, and community.

  • Volunteer: Volunteering is proven to build resilience and a sense of belonging. When you do good, you feel good.

5: Not Understanding Legal Rights and Obligations

The legal landscape of divorce can be complex, and not fully understanding one's rights or obligations can lead to unfavorable outcomes. Laws vary state by state, so educating yourself about what will apply to your case before starting the process is one of the most important things you can do.

Do This:

Pro Tip: Some attorneys offer free consultations. Ask before booking.

Financial Mistakes to Avoid

  • Mixing Emotions and Finances: Make decisions based on logic and long-term benefits rather than emotional attachments.

  • Failure to Close Joint Accounts: Ensure all joint accounts are closed or transferred to avoid post-divorce financial entanglements.

  • Underestimating the Cost of Divorce: Prepare for legal fees and immediate financial changes. Planning and budgeting are your best tools. Check out 6 Overlooked Expenses During Divorce for more.

Don't Miss This Opportunity -- Q&A WITH A FINANCIAL PLANNER

Join divorce prep coach Alex Beattie when she chats with financial planner Josephti Cruz of The Wealth Garden on Wednesday, 2/21 on Instagram Live. It's a fantastic opportunity to learn from experts and ask questions about your situation. Join us and take another step toward empowerment and independence.

At The Divorce Planner, our mission is to make this journey as smooth and empowered as possible. For more resources, tools, and community support tailored to your needs, utilize all of the information available here on the website.


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