There are six key areas that need to be addressed in a financial analysis. When you become single, you must address these for yourself.
- Your spending habits – sometimes called your “cashflow” – and your net worth. Your net worth is a measuring stick to determine if you are getting ahead financially.
- Your insurance plans – life, health, disability, auto, home, and even long-term care. How much insurance do you need to address the “What IF’s “of life? What if you get sick, what if you get sick and die, what if you get sick and DON’T die? When you were married, you had a person that you could rely on for help. Now that you’re going to be single, what’s your game plan?
- Taxes – your tax filing status is going to change from “married” to “head of household”. How much of an issue is that going to be? Do you need to set aside more money for taxes so you don’t get caught with a big bill when you file your tax return?
- Your retirement projections – when can you retire and at what lifestyle? If you have already retired, will the divorce force you to spend less?
- Your estate plan – You are going to need to think past leaving everything to your spouse. Do you need a trust? If yes, what kind of a trust? Do you need to change your beneficiaries?
- Your investments – What if you received a lump-sum settlement from your divorce? What would you do with that? You may feel comfortable making your own investment decisions, or you may want some help.
Whether you are in the middle of a divorce and considering settlement options or your divorce is final and you need to create a financial plan for yourself, be sure to address these six key areas. It is crucial to understand how to organize finances after divorce.
Because cookie-cutter solutions just aren’t good enough, Feldmeyer Financial Group provides financial advice tailored to your unique situation. If you want to discuss your financial situation during or after your divorce, please contact our office to set up a complimentary initial consultation.
Ben Feldmeyer, CFP®, CDFA®, CLTC® is a Private Wealth Advisor and President of Feldmeyer Financial Group, a private wealth advisory practice of Ameriprise Financial Services, Inc. For more information, please visit the Feldmeyer Financial Group Divorce Magazine online profile.
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