3 Essential Tips for Your Fresh Start after Divorce
How did this happen? You were an independent, educated woman, with a thriving career. You decided to take a few years off to raise your family and somehow you became dependent on your spouse for all or part of your financial security. Now that you have parted ways you are back at square one. But that’s ok! You just proved during this whole divorce process that you are a strong, capable woman that can handle whatever is thrown at her. After months or even years of stressful back and forth, I know you want to be done with decision making, but don’t stop yet! These are essential for your future success:
Set goals. You may have been awarded enough alimony or child support to cover your living expenses in the short-term, but for most people alimony will end and children will grow up. Don’t wait until your last check is in the mail to decide your next move! Give yourself some reasonable time to heal, but set a date for a decision to be made on your next step to work towards compensating for those assets in the future. And NO... marrying someone rich to support you by the time you run out of money is not an acceptable plan.
Find Your Purpose. This is NOT the time to dwell on what was; it’s the time to think about what could be. For you it may mean going back to school, studying for that designation, or starting a business that will help provide you financial stability going forward. Was there an occupation you were interested in, but were never able to act on? You have your whole life ahead of you. It’s not time to give up - it’s time to figure out your purpose and charge bravely ahead.
Put the financial assets you were awarded to work for you. In my 20 years in the wealth management industry, I have seen it many, many times. The client is awarded a lump sum in the divorce or the widowed spouse receives a large insurance payment. They have no financial plan in place and they are scrambling to do whatever it takes to make themselves and their family feel better after the stress they have been through. After a chunk is given to adult children for house down payments, or new cars and a pool are bought to make the younger kids happy, there is little left to grow to support future needs. Those assets are meant to get you back on your feet. It may be a larger sum than you are used to, but it will go quick without a plan in place. This is when a financial advisor can be invaluable to help invest and structure those assets to last as long as possible.
Try to stay positive, not everybody gets a chance to have a fresh start! It’s time to accept the challenge to become the best version of yourself with a goal of financial independence. You need to set goals, decide on your purpose, and let us help you put a solid financial plan in place.
This is for informational purposes only. No legal or tax advice is given.