Getting married is like scrambling an egg. You blend your names, lives, and finances. But when you get divorced, it’s not so easy to unscramble that egg. And when it comes to dividing your wealth, things can get messy.
Yes, the Marital Settlement Agreement outlines the terms of your divorce. But the actual separation of your finances means more than just splitting up assets. It means that you are now the only person in charge of your money matters, your investments, and your prosperity.
Does this reality feel like a lot to have on your plate? It is.
There’s no “post-divorce school” to teach you how to move forward or a “separation manual” with step-by-step instructions. To help you navigate this transition, we’ve rounded up some sound financial advice to help you face your economic future with confidence.
For some divorcees, this is an exciting time. For others, it’s an overwhelming “Now what?” moment. The reality is that post-divorce, you experience all these emotions at different times of the day – and sometimes several times a day!
The roller coaster of emotions is completely normal – whether you’re a high earner who didn’t deal with household finances, or you stayed home to take care of the kids and manage the family money. But as things start to settle down, so will your emotions.
Instead of feeling like you’re not in control, take a step back and analyze your situation, asking:
- Where do I stand financially?
- Am I happy with my settlement?
- Do I need another source of income to maintain my lifestyle?
- How can I future-proof my finances?
- Do my investments reflect my risk tolerance?
- Are there unexpected gaps in my monthly budget?
- Do I have the skills and knowledge to manage my money?
- Did I handle our family finances before the divorce?
- How can I adapt to my new financial reality?
Make Yourself a Priority
Confidence is key to making good financial choices. But it’s difficult to feel good about making these decisions if you lack experience. One report suggests that almost 60% of married women who are wealthy don’t participate in the family’s long-term financial decisions.
There are two main problems with letting your spouse handle the investments, insurance, and retirement planning:
- Out of the divorced or widowed women in this same study, 77% of them discovered financial surprises such as secret accounts after their marriages had ended.
- If you stayed home to take care of the children – as many mothers do – you’re at a disadvantage when it comes earning money and saving for retirement.
If your marriage ends in divorce, this means that you’re fighting an uphill battle. To ensure your financial stability post-divorce, you need to take back the control of your money. Of course, this may feel scary at first. But remember that you don’t have to do this alone.
Rebuild Your Support System
Along with losing your marriage, you may have also lost your immediate circle. It’s possible that you don’t know who to approach for financial guidance. If you find yourself in this situation, it’s important to hire a team to help you develop financial resilience.
A trusted advisor can do more than safeguard your wealth. They can create a solid plan to make your personal goals a reality through:
- Budget management
- Tax strategy
- Insurance protection
- Retirement savings
By putting your interests first, you and your advisors can change the course of your financial future. The first step in this process is to get yourself organized. To take a first step in the path to financial freedom, download our post-divorce checklist and start protecting your interests today.