We have all heard the saying “Half of all marriages end in divorce.” While that is statistically up for question, the percentage of divorces ebbs and flows over the years. Getting a divorce can be, not only, emotionally devastating but financially devastating as well. With proper planning from an advisor, your future can still look bright!
Emotionally, you may not be ready to jump into planning and analyzing your new financial status; but this is exactly what you need to do. The sooner you take control, the better. Once you feel in control of your financial wellness, you will feel more confident with your future.
1) Have a great team in place. I’m not just talking about the lawyer who’s going to “win big” for you. I’m talking about the person who can make a financial plan for you and or your children going forward. How will you pay the bills monthly? After you pay your debts, will you have enough retire? How many more years do you have to work? What about affording college for the kids? These are some of the key questions a financial advisor can help you with.
2) Get educated. The Internet is full of information, and I ask my clients to use it wisely. Before a monthly or quarterly meeting, I’ll give them some popular terms — $401k rollover, annuity, 529 college savings plan, alternative investments, and others – to research online. Our meetings are always more productive when a client takes on the homework. Getting educated in this area of your life will help you make good decisions for your family.
3) Consult a qualified tax advisor. Hire a professional who really knows his or her stuff. They can help you wade through all the many filing options. Also, it’s good to find an advisor who has a good CPA to refer you to. With all the annual tax code changes it helps to have a top notch person in this area.
4) Get organized. Many women have never had to handle the financial side of their lives. Now, amidst divorce, they must learn on the fly. Avoid getting overwhelmed by staying organized. It might be as ordinary as writing checks to pay the bills, or keeping track of debt online. You’ll thank yourself for staying on top of it all.
5) Try something new. No matter your situation, it always pays to take the high road and do the best you can. Personally, I was divorced in 1997 and learned a yoga practice that has continually grown and expanded me physically and mentally. In every disappointment in life there lies an opportunity, and in this case yoga was mine. In this difficult time, you might find something that will change your outlook forever.
Click below to hear Win Damon and I chat about financial planning and divorce on at wnbp.com and 1450 am WNBP Newburyport every Tuesday at 8:30 am
20 October 2014