Divorce is a difficult and emotional process that can have significant financial implications. Whether you’re just starting the divorce process or are navigating the aftermath, working with a financial planner can provide invaluable guidance and support. A financial planner can help you navigate the complex economic issues that arise during and after divorce, from evaluating settlement options to protecting your credit. This blog post will explore how a financial planner can help you during and after a divorce.
One of the most important steps you can take during this process is to work with a financial planner specializing in divorce. Here are some ways a financial planner can help:
Some of the key benefits of working with a financial planner during a divorce include the following:
Financial planners can help you healthily navigate divorce by ensuring all your expenses are accounted for and helping to create realistic budgeting goals. In addition, they can provide support throughout the process, from guidance on financial planning tools to offering emotional support during tough times.
It’s important to plan for post-divorce finances to ensure both of your best interests are protected. A financial planner can help you create realistic financial goals and provide resources should you encounter any unexpected challenges. One of the biggest financial concerns following divorce is maintaining as much of your pre-split wealth as possible. Suppose one spouse was significantly more financially successful than the other before the marriage. In that case, that person needs to ensure they maintain their equity in the family home and other assets. It’s also crucial to agree on a budget and stick to it, so both parties know where their money is going.
In addition, you’ll want to start planning for future income streams following divorce. This could include retirement savings or an additional source of income such as freelance work. It’s also important to get insurance coverage for yourself and your children in case of an accident or financial emergency. If you’re struggling to cope with the financial stress of divorce, speak with a financial planner who can help create a plan that meets your needs.
It’s important to take the time to adjust and plan for your future after divorce, especially if you anticipate difficulty managing finances independently. The following tips can help you set financial goals after divorce:
3. Establish new retirement savings accounts if you don’t have any saved outside your divorce settlement agreement or spousal support package. This will help ensure that you’re adequately covered in future income changes or unexpected expenses (e.g., a health issue).
4. Create a budget for household expenses and ensure you include everything from groceries to furniture repairs—factor in any special needs of your children, such as expensive private school tuition.
5. Review your insurance policies and estate planning options if you have property or financial assets that may need to be distributed upon divorce. You may also want to consult with an attorney about creating a durable power of attorney for health care, which can give someone else the authority to make medical decisions on your behalf if you become incapacitated.
6. Make a financial plan for your retirement and create a timeline of when you want to retire. Evaluate how much money you need to save each month from reaching your retirement goals. Consider taking steps such as increasing your employer-sponsored retirement account contribution or investing in home-based care services if you anticipate needing help during your retirement years.
Choosing the right financial planner is critical in ensuring that you receive the guidance and support you need during and after your divorce. Here are some tips for finding the right financial planner to work with:
By finding the right financial planner, you can ensure that you receive the guidance and support you need to navigate the economic challenges of divorce and plan for a secure financial future.
Working with a financial planner during and after a divorce can be very beneficial. By having a financial planner on your team, you can ensure that your financial needs are taken care of properly and that you remain as stress-free as possible during this time. A financial planner can also provide valuable guidance and advice during divorce, helping resolve difficulties and maintain an honest relationship with all involved. If you’re interested in working with a financial planner during or after your divorce, get in touch to learn more about their services. At Alberta Divorce Finances, they provide professional financial planning services to help you throughout your divorce process.