Avoiding Financial Fallout After Divorce
So now it’s over. The divorce is finalized, and you may be experiencing a host of emotions, ranging from sadness to relief. And, rightly so.
Divorces are often one of the most stressful events someone may possibly deal with during their lifetime. But, despite what you are feeling at this moment, it’s important that you begin to restructure you life now that your course has changed. And, perhaps most importantly, this means establishing your financial independence.
As someone who went through a divorce after 16 years of marriage, I know this process can be tough. But let me just say, you’re going to be OK. For almost 30 years, as a Certified Financial Advisor (CFP®), I’ve helped many people avoid the financial fallout of divorce. Here are some key issues you should consider as you redefine your finances after divorce:
Be sure all the components of your divorce decree have been completed.
It’s imperative that you take a proactive stance rather than a reactive one in this instance. Be sure that you update life insurance policies, your will, IRAs, and any company retirement accounts to reflect your new circumstances. Also be sure to modify the information on your health insurance account and to update deeds on any real estate you may have previously owned with your ex-spouse.
Have retirement assets been divided appropriately in accordance with the Qualified Domestic Relations Order (QDRO)?
Formally separating means financially separating.
After your divorce, you will want to be sure to close, and replace, any joint accounts you and your ex-spouse held together. This could include bank and brokerage accounts, as well as credit and debit cards. Checking your credit report for any items of concern could also be a prudent cautionary measure as you establish your financial independence.
Protect your interests for the future.
Now that you are separated, it’s time to assemble your own team of financial advisors, who can help you protect your finances and wealth. Although you and your ex-spouse may have shared financial advisors in the past, you may feel uncomfortable confiding in the same advisors after your divorce. That’s OK. Part of establishing your financial independence is making choices that protect your own interests
Just as you smartly obtained a competent legal advocate, you should now align in a similar fashion with a financial advocate. Should you, like many I speak with, feel hesitant to do so because you’re embarrassed at your lack of understanding about your investments…don’t be. Most investors privately admit they don’t fully understand them either. Additionally, you may also feel “trapped” in a relationship with your ex-spouse’s broker out of a sense of loyalty…don’t make this common mistake.
You deserve your own advisor.
Just as you were selective about your own attorney, you must now be selective in this area as well. It’s OK to select your own advisors. Doing so will empower you to redefine your financial independence now that your course has changed. However, not just any advisor should do. Align yourself with a board Certified Financial Planner. They’ll not only properly advise you, but also teach you about money.
Knowledge in this instance is power.
So, if you’re like most, and you’re feeling overwhelmed by the financial aspects of your divorce, or possibly uncertain as to what your next steps should be, don’t be alarmed. In fact, it’s quite common that you’re feeling this way. What you do next, however, will determine if you’ll continue to feel this way.
As someone who’s not only endured a divorce, but helped countless others just like you for almost 30 years, I know what you’re going through…and you shouldn’t have to deal with this alone.
It all starts with a short telephone conversation. Allow my experience – both personal and financial – to not only help you make the most prudent financial choices, but get through this to the other side. Let’s talk! https://www.kinneywealth.com/contact-us/
Here’s to your future!