Aside from child custody matters, those related to the division of marital assets are among some of the most anxiety-producing and contentious for divorcing couples. Many divorce negotiations are dominated by fears related to money and financial security as divorcees attempt to adjust to their new financial realities.
Once a divorce settlement is finalized, it’s important to take steps to ensure for one’s current and future financial success. The first and most basic step in this process is to establish a monthly budget. Taking stock of one’s gross monthly income, existing debts and basic living expenses will provide an individual with the information he or she needs to establish and stick to a monthly budget that ensures an individual is living within their means and meeting financial obligations related to existing debts.
Establishing and abiding by a monthly budget also provides the framework necessary to allow an individual to create a bigger financial plan for the future. To ensure that one is able to reach their future financial goals of buying a home, traveling abroad or providing for a child’s college education; an individual would be wise to work with a financial planner.
A financial professional can provide advice on the most effective short and long-term strategies to grow investments and help ensure an individual is able to achieve their financial goals. A comprehensive financial plan should also account for emergency funds. Furnaces stop working, cars break down and medical emergencies aren’t planned. It’s wise, therefore for an individual to take steps to ensure they have a sufficient amount of assets readily available should the unthinkable happen.
In our next blog post, we’ll continue to discuss steps recent divorcees can take to ensure for financial success post- divorce.
Source: Daily Finance, ” 22 Tips to Transform Your Financial Life After a Divorce,” Robert Pagliarini, July 28, 2014