At the Madams Advisory Group, we recognize that each situation is unique. We can help optimize your investment strategies to align with your post-divorce goals and help ensure a sustainable financial future.
Going through a divorce can be emotionally overwhelming, guidance on what financial steps to take regarding your finances can help ease the uncertainty.
Gather and organize financial documents
Start by gathering all relevant financial documents, including bank statements, tax returns, investment account statements, property deeds, and any other documentation related to your assets, liabilities, and income. Organize them in a secure and accessible manner.
Establish an emergency fund
It's important to set up an emergency fund to cover unexpected expenses and provide a safety net during this transitional period. Aim to save at least three to six months' worth of living expenses in a separate account.
Review your budget
Assess your new financial situation by creating a realistic budget that reflects your post-divorce income and expenses. Consider any changes in housing, healthcare, childcare, and other costs. This will help you understand your financial needs and make informed decisions.
Close joint accounts and open individual ones
If you have joint bank accounts or credit cards, it is advisable to close them or remove your spouse’s access to avoid any potential financial issues. Open new individual accounts in your name to manage your finances independently.
Evaluate your credit situation
Obtain a copy of your credit report from all major credit bureaus and review it carefully for any joint accounts, outstanding debts, or inaccuracies. Taking control of your credit will help you maintain a healthy financial standing and secure your future financial endeavors.
Seek legal and financial advice
Consult with an experienced divorce attorney who can guide you through the legal process and protect your rights. Additionally, consider engaging a financial advisor who specializes in divorce to help you navigate the financial complexities and make informed decisions about property division, alimony, child support, and financial settlements.
Update beneficiaries and estate planning documents
Review and update your beneficiaries on life insurance policies, retirement accounts, and any estate planning documents, such as wills and trusts. Ensure that your wishes are reflected accurately in these documents.
Consider the long-term financial impact
Divorce can have significant implications on your long-term financial goals, such as retirement planning. It may be necessary to adjust your investment strategy, revisit your retirement savings, and reassess your insurance coverage to align with your new circumstances.