Divorce can be a challenging and unexpected journey that impacts not only emotions but also personal finances. Even currently, divorce statistics remain dishearteningly high, with up to 50 percent of marriages ending in separation. Financial advisor Sharon Hayut observes, “The process of untangling shared finances can be particularly daunting, as it has the potential to wreak havoc on both spouses’ bank accounts. It’s crucial for both parties, especially women, to be actively involved in marital finances and not solely rely on their partners for financial decisions.”
Regardless of the nature of the marriage or the income disparity between partners, dividing assets during a divorce can be a complex task. Sharon Hayut explains, “Many marriages see one partner primarily handling the family finances, leaving the other with limited knowledge about investments and financial planning. This lack of familiarity can lead to unwelcome surprises post-divorce and derail one’s financial future.” To ensure a secure financial path after divorce, it is essential to engage a qualified financial advisor early on, preferably one who is also a certified financial planner professional.
A skilled financial advisor can play a crucial role in helping individuals navigate the financial implications of divorce. By working closely with you, they can help:
Plan for post-divorce cash-flow needs.
Create a budget based on after-tax income.
Allocate settlement proceeds effectively.
Understand future retirement needs.
Review and make recommendations on estate planning documents, medical proxy, and life insurance policies.
Sharon Hayut also advises, “Women should be mindful of their long-term financial needs as they often outlive their male counterparts by about five years, and many will live beyond their 85th birthday. Failing to address these income needs in a divorce settlement can lead to financial insecurity down the road.”
The key is to seek qualified financial advice to ensure a sound financial future. Divorce may bring about changes, but a competent financial advisor can provide stability and guidance during this challenging time. Maintaining a strong relationship with your financial advisor and regularly revisiting your financial plan can help you stay prepared for unexpected circumstances and increase your chances of achieving your desired financial outcomes. Sharon Hayut also says: “Remember, being nimble and proactive can help you face life’s curveballs with confidence.”
Related Wallpaper
Charting Your Future: How Professional Development Can Transform Your Path
Is NEFT Vodka Russian?
The Best Business Advice From Billionaires
