This article discusses general financial planning for divorced persons. Every situation is unique to the person. This information should not be considered legal advice, and you are encouraged to discuss your specific financial situation with your attorney and accountant or financial advisor.
Hous In addition to the legal process of ending a marriage, there are many other pieces to sort out as each person begins a new chapter of their life.
For a divorced woman whose husband may have handled all of their financial affairs, suddenly being in charge of their own financial situation can be overwhelming and even scary.
At Hiley Hunt Wealth Management, we specialize in guiding women through their financial journey after impactful life events such as divorce.
Here are three key financial areas to consider during and after a divorce.
1. Your monthly income
Carefully look at your monthly income and expenses before your divorce is finalized. You may have your own monthly income from a job, which could be more or less than what your spouse earns. Take into account your living expenses, and discuss them with your attorney and accountant so that you can request and hopefully receive the appropriate spousal support.
2. Your house
Your home is likely a sentimental place of comfort. Perhaps it’s where you raised your children or is simply your dream home. It’s important to set your emotions aside and consider if you can afford to remain in your home after the divorce. If not and it is decided to sell your home, get it appraised as soon as possible so you and your spouse can agree on a selling price. Understanding your monthly income and expense can help you determine what house you can afford.
3. Your retirement assets
Retirement investments are another important factor to consider in a divorce. This is definitely an area in which you should include an accountant in your discussions with your divorce attorney, as it can be challenging to properly transfer these assets. A private-sector retirement plan such as a 401(k) or pension will require a court-approved division of those assets through something called a Qualified Domestic Relations Order (QDRO). Your employer will also have to approve any QDRO.
If you are going through a divorce and would like some guidance on how to plan your financial future, we’re here to help. Contact us today to set up an appointment.