How to Take Stock of Your Finances After Divorce
To say that divorce is difficult would be an understatement. It’s a heartbreaking event that changes much in your life, including finances. We understand money is not at the top of your list during a divorce. We also know you have so many other worries on your plate, but taking even a momentary step back to consider your financial well-being will help you begin to rebuild your future.
Financial planners are great resources to look to when you need financial consultation through these tough times. Here are a few ways to keep your financial wellness from suffering during a divorce.
Step Back, Breathe, and Analyze
Your world is moving fast, and this transition is uncomfortable. It’s understandable that this time in your life might not be the most rational. You might gravitate toward big financial decisions like moving to a new city, buying a new car, or taking an extended vacation. These coping mechanisms might make your transition more comfortable, but consider pausing to take stock of your financial circumstances.
Before taking the leap, ask yourself, Do I have the financial resources to …?
Take a second to step back and assess what you have and how a rash decision might lead to financial consequences. Maybe there is a financially responsible way to achieve what you want, but approach the possibility carefully.
Map Out a New Budget
The last thing you want to hear right now is to “make a budget.” Consider that your income and expenses may change dramatically, depending on the level of financial responsibility you shared with your spouse.
Before you can even begin adjusting, you should know what you’re working with. Take a look at your current financial situation and identify what you’re bringing in and what needs to go out. Even if you don’t rigidly stick to this budget, you’ll have a better sense of what you can afford.
Check Your Beneficiaries
It’s wise to revisit the appropriate accounts on which your former spouse’s name might still be listed as a beneficiary. A few accounts to review are your 401k, life insurance, and healthcare plans. Your financial advisor and your legal counsel can advise you on other accounts you might want to update in terms of beneficiaries.
You shouldn’t feel alone in such a difficult situation. Enlisting the help of a financial advisor takes the burden and worry off your plate when finances are the last thing you want to think about. Spend your time taking care of yourself, and let a financial advisor make the transition less challenging than it already is.
Surrounding yourself with the support you need will be the key to lessening the impact of your divorce, financially and otherwise. Take the time to build a dependable team of people who understand what you’re dealing with and know how to help you get through it.
Southwest Investment Group is here to help you through your most difficult financial challenges. Contact us today to learn how we use a holistic approach to get your finances back on track.
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