Financial Planning After Divorce
Financial planning after divorce usually starts with some big questions...
How will my financial future be different if I decide to Separate and Divorce? Stay or leave?? Put up or Shut up? Live in misery or move forward?
Not always an easy decision. Like any decision in life, there are pro’s and cons, consequences, issues and fears.
One of the major fears, has to do with the money. How much will you end up with, will it support you and your children, for how long and will it last? Good question!
One of the first things you need to realize is that if you separate, instead of having one household to run, like it no not, now there are two.
Perhaps, the same income, double the expenses. Yes, the reality is life will change, and the sooner you can get your head around that fact, the faster you begin your financial planning after divorce, the faster you can move forward and get on with your own life.
The best place to start financial planning after divorce is by gathering as much financial information as you can, however you can.
Easy if you were the one managing the finances, more difficult if you were not.
You want to gather tax returns and NOA Notice of Assessment information or Business Financials, books and account information. This is what is needed to determine both Child Support and Spousal Support.
You will also need to gather any other documents that have to do with money. It is needed to create a Net Worth Statement that will ultimately be used to negotiate Division of Assets.
A very good way to find out what your situation will look like, is by doing a Cash Flow Analysis. We like to get people to look at cash flow with a bit of a twist. Decide what expenses are Needs, Goals or Wants. You need to become very conscious of the money, otherwise yes you will create more stress. It is also a great way to determine if you should keep the house, sell it or buy something else.
Once you know the basics, then you can figure out your future and decide if now is the time to leave.
Life is about choices. What makes sense for you?
Make sure you get professionals who have the financial planning after divorce background, experience and knowledge to guide you through this most difficult time.
Get educated. Don’t be afraid to ask for help. You owe it to yourself, your family and your future!
Would you like some help with Financial planning after divorce? Contact me today