By Tom Breiter, Integra Capital Advisors
Divorce is hard enough to deal with emotionally, let alone financially and legally. Whether you saw it coming from miles away or were taken by surprise, the ending of a marriage can be painful, traumatic, overwhelming, and expensive. But, you’re making it through the experience and you now have the opportunity to create a brand-new life for yourself.
If you’re divorced or in the process of getting divorced, here are 6 things you can do to secure your financial future and start living life on your own terms.
1. Reevaluate Your Current Situation
To move forward, you need to have a realistic understanding of where you are today and evaluate the current strengths and weaknesses of your financial situation. Start with these steps:
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 in your new post-divorce landscape.
2. Review Your Investment Accounts
Oftentimes when assets are split, investment accounts can be part of the deal. If your divorce settlement included investments, 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.
3. Adjust Insurance Policies
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.
4. Update Legal Information
Was your spouse listed as the beneficiary on any of your legal documents, like your will? If so, you’ll need to get those updated as soon as possible. For financial documents, check over any insurance policies and financial accounts to update beneficiary designations. Double-check medical documents as well. You may have listed your spouse as your power of attorney or point of contact on medical directives.
5. Be Kind To Yourself
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 probably completely thrown off and you may be taking on new responsibilities that have a learning curve, 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.
6. Get Support From A Professional
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.
How We Can Help
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 Integra Capital Advisors, 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.
We work primarily with clients who desire our personal yet structured process for planning and investing that relieves them of the day-to-day worry of the financial markets with freedom to pursue what they value most and allows them to feel confident and reassured. We call this process the “Waypoint Formula.”Call us today at 941-778-1900 or email email@example.com to plan your path to financial freedom.