The best-laid financial plans are thought out with detail and benefit from a ton of time and flexibility. Unfortunately, that time and flexibility aren’t always available for many, especially during a divorce. While no two divorces are exactly alike, it’s possible to make your post-divorce lifestyle a fruitful one, and it all starts with understanding what you can spend now and what you have for the future. That helps you find a stable road to recovery and alleviate some of the stress that makes divorces challenging to handle.
Take Inventory of Your Assets
There’s a lot of back and forth in a divorce, and one of the main factors you need to consider is what you have for yourself. Put together a list of your assets, which can include things like retirement assets, personal property, business interests, or real estate properties. You should also sort through your debts and liabilities, calculating what you own and what you owe in the future. Divorces aren’t pleasant, but they do present an opportunity for you to reset and set up a plan for attacking any significant debts or saving for future goals.
Set an Appropriate Budget to Fit Your New Lifestyle
One thing you must understand — a divorce will likely leave you with less income than you started with. So you should definitely have an idea of what you can afford financially. Make a new budget based on your needs, and stay within your budget to help ensure you can afford your post-divorce requirements. Use a detailed worksheet or an application, and don’t forget to track things like subscriptions or payments that are paid annually or quarterly.
Do You Have Children? Don’t Forget to Prioritize Their Future
Children should be at the top of your planning hierarchy, so don’t forget to include their plans in your needs and goals. Things like college tuition, down payments on homes, cars, or weddings are important factors to consider and plan for. Depending on your child's age and previous decisions made by you and your spouse, there might be certain things you’ve already set aside finances for. Make sure you’re also clear about your finances so that you can begin informing your children about what you can afford and what they may need to work on alone.
Gauge Whether You Can Still Afford Your Home
The home is one of the most challenging things to decide on. But no matter what you both think about the house, the essential parts are that you must take steps to get the issue out of the way. If you’re left responsible for the home, your first step is to gauge whether you can afford it. You and your spouse can make certain agreements to co-own the property or buy out the house. Either way, make sure your form of shelter is taken care of.
Don’t Forget to Plan for Your Future
Retirement financial planning is an integral part of your life, especially as the age of 67 approaches. A professional financial planner can help you set up a retirement account and make meaningful contributions that don’t get in the way of your current budget or goals. Just remember to take your time, start small, and put your trust in an experienced financial planner to work towards comfort in your later years.
Remember — You Don’t Have to Handle Your Divorce Alone
You may be divorced, but it doesn't cut off your access to professional support before, during, or after the process. Post-divorce planning is a process that can take a lot out of you, especially as you adjust to a new lifestyle or work with your children and ex-spouse to find a new lifestyle and routine. So why go about things alone? Sort your finances with a certified divorce financial advisor like David A. Stolz and the Stolz & Associates, P.S. team.
We’ll help you break down your finances and set up a path for success and stability throughout your life. From mediation or trials to setting up retirement accounts, we make a stressful process much easier for you and everyone involved in your post-divorce life. Contact us today and take control of your finances and future after a divorce.