How do I adjust my financial plan during a divorce?

Going through a divorce can be complicated. One important aspect to consider is your financial planning. Here is a video that outlines some factors that you should consider if you are newly divorced. This will help you be prepared financially and set yourself up for a successful future.

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Video transcript

Going through a divorce can take an emotional toll. There are a lot of arrangements to be made and it’s natural to feel overwhelmed. Addressing and organizing your financial plan as soon as possible is important. 

Here are some steps you should take to financially prepare yourself during your divorce. 

Gather and organize your financial information

It is a good idea to get the whole picture of you and your former spouse’s finances. Gather and create a list of all your financial facts, list all assets and liabilities and gather all investment account statements. 

Analyze your spending and create a budget

A change in lifestyle will create a change in your spending. Having a budget will help keep you on track financially. 

Review and update your insurance 

This should include revisiting your health, dental, auto, home and life insurance to make sure you were adequately covered. In regards to life insurance, you may want to update your beneficiaries and remove your former spouse. 

Educate yourself on financial topics 

It is not uncommon for one spouse to be more involved in the finances than the other. No matter what your previous level of involvement was, it’s important that you educate yourself on financial planning topics to ensure you are making informed decisions. 

Revise your will and power of attorney

You may want to change your beneficiaries and update your final wishes. If your former spouse is your power of attorney, you may want to revise this. 

Review your retirement plan

With a change in your financial situation as well as your future needs, you should review your retirement plan to ensure it reflects your goals. 

Reviewing your financial planning during your divorce will help set you up for a successful future. Speak to your advisor to get started.