Divorce is a life-altering event that can leave you feeling overwhelmed and uncertain about your finances and more. Working through the strategies below with a financial advisor, experienced in divorce, can bring order to the chaos and set you up to prosper post-divorce. 

Update your support team

When your divorce is finalized, your needs for wealth advice shifts. Your financial advisor should know what needs to change for your financial support team. As with all stages of divorce, I can support you in identifying who you need on your team and introduce you to trusted partners. For example, I often connect my clients with trusted estate lawyers at this point. Updating their wills, powers of attorney and medical directive ensures their wishes are respected in the even of the unexpected. 

Finalize the transfer of property promptly

One of the first priorities after your divorce should be finalizing the transfer of property. This includes updating property titles and mortgage documents for real estate properties, registering vehicles under your name and consulting with a financial advisor to ensure a smooth transfer of cash and investments. It's crucial to handle these matters promptly and efficiently to avoid any potential complications down the road. You should also close any joint credit accounts and carefully review and update beneficiaries on insurance policies and retirement accounts to reflect your new circumstances.

Update your health insurance

With your change in marital status, you may need to find an individual health insurance plan that meets your specific needs. Consider factors such as coverage, deductibles, and premium costs to ensure you have appropriate healthcare coverage for yourself and any dependents. Your financial advisor should be able to recommend a trusted insurance expert to help you manage this.

Create a new financial plan

The financial impact of a divorce means you’ll need a new financial plan once the separation is over.

A Certified Financial Planner (CFP) can provide valuable advice for creating a future-forward financial plan. Their insights and guidance will address your unique circumstances and goals. Your financial plan should include budgeting strategies, investment goals, retirement planning and debt management. Review and update your financial plan annually or as needed to keep it aligned with your need and goals.

Build an emergency fund

An emergency fund should hold at least six months’ worth of living expenses in a separate savings account. This emergency fund will provide you with a financial safety net and peace of mind. A CFP-certified advisor can help you build a smart plan to create or update your emergency fund.

Mange the tax implications

As your marital status changes, so does your tax reality. Consult a tax professional to help you the implications of filing taxes as an individual and familiarize yourself with any new tax benefits or obligations that may arise. I can recommend a trusted, proven tax specialist if you need one. 

Protect your financial independence

If you anticipate entering a new relationship or marrying again, it's crucial to protect your financial independence. Keep your finances private until you are sure about the relationship's long-term prospects. Discuss the possibility of cohabitation with your divorce lawyer and consider drafting a cohabitation or prenuptial agreement to protect your interests. Understand the legal ramifications to spousal support should you remarry or cohabitate with your new partner. You may also need to revisit your estate plan with n estate lawyer to ensure your blended family considerations are accounted for in your will and other relevant documents.

You’re not alone

Thriving after divorce requires a comprehensive approach to all parts of your life, including your finances, legal matters, and personal well-being. By taking the time to address these important factors, you can pave the way for a prosperous future and embrace the new chapter of your life with confidence. 

After your divorce, you deserve to prosper—in every sense of the word. As an experienced financial advisor, I would welcome the chance to help you achieve this. Let's connect to discuss your situation and respond to questions you may have.