Financial planning & divorce, Pt. 2

In our last post, we talked about some preliminary things to consider if you or someone you know is facing a divorce. Read Part 1

First and foremost, talk to your financial advisor. Despite the high emotionality of a divorce, it isn’t a time to neglect financial awareness. Rather, it might be more important than ever to know the true value of your combined assets and how to most effectively divide them.

The second and third points are really about being aware of accurate valuation, both in the present and in the future. It’s important to consider the full future implications when divvying up assets. Even in very amicable divorces, splitting things 50/50 isn’t always as equitable as it seems.

In this post, we offer some more things to consider if you’re planning to divorce.
An attorney’s perspective can also be helpful.

DISCLAIMER: We are legally obligated to remind you that the information and opinions shared in this article are for educational purposes only and are not legal, financial, or investment advice.

Consider Your Cost of Living After Divorce

The cost of two people living together is lower than two people living apart. And that difference is critical to consider.
The Census Bureau has also published insights on marriage and divorce rates.

Having a realistic understanding of what your new cost of living will be can help you not only make informed decisions as you divide assets, but also make important adjustments to your long-term financial plan.

To avoid potential cash flow issues, arrange a financial planning meeting with your advisor. She can help you gain a realistic view of your finances, adjust your budget, and reset your financial goals according to your new lifestyle.

Get Things in Writing

Some people, especially retirees, rely on investment or brokerage account distributions for their living expenses. But during a divorce, shared assets can be frozen until paperwork is finalized. If distributions need to continue, make sure it’s clearly stated in your petition.

Relationship With Financial Advisor

Both parties should consult with their advisor. If you feel like you can’t speak openly with yours, that’s a sign to evaluate the relationship. At NEST, we’ve helped clients through marriage, divorce, and beyond, always staying focused on providing objective, expert support.

Small Business Owners & Divorce

If you own a small business, talk with your financial and legal advisors. Ensure your business is correctly valued and protected, especially under Texas community property laws.

Update Your Beneficiaries

Check your retirement account beneficiaries — they override your will. Your financial advisor can walk you through how to update your retirement and estate planning documents.

Talk to Your Financial Advisor First

Your financial advisor can help keep an eye on account activity and provide asset insights that attorneys may not catch. From valuations to withdrawals, your advisor is a crucial ally.

If you have any further questions about financial planning through divorce, or if you’d like to schedule a financial planning session with Gloria, reach out at info@nestfinancial.net.

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DISCLAIMER: We are legally obligated to remind you that the information and opinions shared in this article are for educational purposes only and are not financial planning or investment advice. For guidance about your unique goals, drop us a line at info@nestfinancial.net.