By: Mark Thatcher, CRPC®
The complexity of divorce can be overwhelming for anyone. Whether you saw it coming from miles away or were taken by surprise, it’s emotionally, mentally, and financially draining. While divorce may have its negatives, it’s also an opportunity to create a brand-new life for yourself.
If you’re divorced, here are 6 things you can do to secure your financial future and start living life on your own terms.
Take a few hours and review what your finances look like post-divorce. Calculate your monthly income and expenses to determine if you’re spending more than you make. Look at your debt and credit card statements to identify any spending habits that need to be changed. Review your savings, investments, and retirement accounts to get a clear picture of how much money you have. Once you’ve gathered all this information, create a budget that works for you.
If you received any investment accounts as part of your divorce settlement, you’ll need to review them and make adjustments if necessary. These adjustments may include estimating capital gains or losses, reallocating assets, or rebalancing portfolios.
If you’re unsure how to do these things, meet with a financial advisor who can help you create an investment strategy that directly aligns with your short-term and long-term financial goals.
If you shared any insurance policies with your spouse, you may need to purchase new policies of your own. This could be anything ranging from car and home insurance to health and life insurance. If you have children, determine whether they will be on your health insurance policy or your ex’s.
Was your spouse listed as the beneficiary on any of your legal documents? If so, you’ll need to get those updated as soon as possible. For financial documents, check over any insurance policies and financial accounts you have. Double-check medical documents as well. You may have listed your spouse as your power of attorney or point of contact on medical directives.
Divorce is uncharted territory for most people. While you once made decisions as a team, now you’re making them on your own. Your routine is completely thrown off, so don’t beat yourself up if it takes a while to find your new groove. Trust the process as you adjust to your new normal.
If your marriage was like most, one spouse was in charge of managing the finances. If that spouse wasn’t you, don’t panic. Get support from a professional who can show you the ropes. A financial advisor, for example, can help you review your investment options, adjust your insurance policies, and even teach you basic financial management skills. Just because you’re divorced doesn’t mean you have to do this alone.
The quickest way to build financial confidence after a divorce is to assess your current financial situation, define your goals, and create a solid financial plan. At Cypress Wealth Services, we bring clarity and confidence to your financial life. We understand that divorce is likely unfamiliar to you, and we welcome the opportunity to help you organize your finances, plan for the future, and invest your money efficiently. To learn more about how we can work together, call 866.888.6563 or contact one of our offices today.
Cypress Wealth Services is an independent RIA firm providing financial planning and investment management to high net worth individuals, families, business owners, and institutions. Cypress Wealth Services is comprised of professionals with diverse backgrounds and extensive experience and qualifications. Cypress Wealth Services is uniquely qualified to serve a broad range of client needs. Their experience and expertise act as a foundation for their client service process, The firm uses The Second Growth, which focuses on efficiently protecting, growing, and transferring to their loved ones the wealth and legacy a person has already built. With offices in Palm Desert, CA, Tustin, CA and Anchorage, AK, the firm serve clients across the country in Wealth Management Services, Fiduciary Services, 401(k) Design and Management, Investment Reporting Services, Financial and Retirement Planning and more. For more information: visit www.CypressWS.com or call 760.834.7250.