A divorce can be devastating—emotionally, legally, and financially. Women going through one may seek emotional support and hire an attorney, but you might not think about financial planning for divorcees to prepare for life after a divorce. “A financial advisor can help offer calm, clear guidance when it’s needed most,” says advisor Mallory Kretman.
Studies have shown that divorce in the U.S. is more financially damaging for women than men. For couples splitting at age 50 or older, the gap in the aftermath is stark: 45 percent of women who divorce later in life see their standard of living (their income compared to their needs) plummet, while living standards drop for 21 percent of men.
While a divorce has the potential to destabilize your life, piling on financial uncertainty can be ruinous. Consider speaking with a financial advisor at Laurel Wealth Planning about financial planning for divorcees. Mallory shares, “In working with many clients preparing for divorce, we’ve seen how proactive financial planning can make a significant difference in long-term outcomes.”
Working with a financial advisor can bring certainty to your future, helping you feel more in control of what comes next in your life.
What Is Financial Planning for Divorcees?
Having a financial advisor by your side before, during, and after your divorce can be a significant support during this challenging transition. Financial planning for divorcees can help you understand your financial situation, assist with dividing assets, and plan for your financial future.
Valuing and Dividing Assets
A financial advisor can assist in developing the true value of your assets and liabilities. Knowing the real worth of your real estate, investments, and retirement accounts can be critical to getting a fair settlement.
Budgeting
Whether you’re a one- or two-income household, part of the money coming in may be gone after your divorce. A financial advisor helps you identify and address the financial needs of life after your divorce. Your financial needs might include:
- Alimony
- Child support
- Long-term goals
Strategic financial planning for divorcees helps build a plan for income after your divorce and reset your budget.
Planning for Taxes
Your decisions about assets or paying or receiving support impact your taxes. Partnering with a financial advisor and tax professional can guide you through those decisions to mitigate any tax burden.
Reevaluating Retirement
Divorce may throw out the window who you spend retirement with, but it doesn’t have to derail your retirement plans. Your financial advisor can reevaluate your retirement planning based on your divorce. This could include seeking new income streams, analyzing investment strategies, and rethinking decisions on Social Security benefits.
Building an Emergency Fund
The impacts of divorcing may reverberate long after your split. An emergency fund may be the safety net that keeps financial disaster at bay. Financial planning for divorcees can establish the appropriate emergency fund based on the adjustments in your income and expenses after the divorce.
Updating Insurance
Insurance might not be the first thing to come to mind during a divorce. However, it might be a source of soothing comfort. You and your financial advisor can properly identify your pre-divorced policies and coverages and establish what you need based on your new financial circumstances.
Establishing a Financial Presence
If necessary, a financial advisor can support you in establishing separate financial accounts, such as checking, savings, investment, and retirement accounts.
Divorcees desire confidence in a stable financial future. And as fiduciary advisors, the Laurel Wealth Planning professionals look out for your best interests while implementing financial planning for divorcees that builds a sound foundation to give you that confidence.
Talk to a Financial Advisor With Laurel Wealth Planning
A financial advisor can provide professional support to guide your financial decision-making when you’re under great stress. Laurel Wealth Planning takes a holistic approach to providing objective financial, investment, and tax advice, specializing in assisting women in transition.
Mallory explains, “We approach pre-divorce planning with sensitivity and a focus on what matters most to each individual client—stability, clarity, and peace of mind.”
Find out whether their team of financial advisors is right for you. Schedule a complimentary meeting today by emailing laurel.wealthplanning@laurelwealthplanning.com or calling (952) 854-6250.
The foregoing content was prepared by Indigo Marketing Agency with verbiage, opinions and/or financial commentary input provided by Laurel Wealth Planning.
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Mallory is a Wealth Manager and Shareholder. She listens deeply and helps simplify complex financial situations to help clients move into an easier, clearer future. She aims to give financial advice that is compassionate, wise, and easy to understand.
