Navigating Divorce and Finances: A Guide to Financial Independence

Jeneen Slack |

By Jeneen Slack, CFP®, CDFA®
Financial Advisor

Divorce is a life-altering event that can have a significant impact on your financial well-being. It's important to approach the process with a clear understanding of your rights and responsibilities. Here are eight key strategies for navigating divorce and finances to work towards achieving financial independence.

1. Understand Your Financial Situation:
Before entering into divorce proceedings, it's crucial to gain a comprehensive understanding of your financial situation. This includes gathering all financial documents such as bank statements, tax returns, mortgage documents, and investment account statements. Understanding your assets, debts, and income will provide a clear picture of your financial standing.

2. Seek Professional Advice:
Consulting with a financial advisor and a family lawyer is essential and they can help guide you when you want your financial interests to be protected. A financial advisor can provide guidance on budgeting, asset division, and long-term financial planning. A family lawyer will help you be aware of your legal rights and entitlements under the law.

3. Create a Post-Divorce Budget:
Developing a realistic post-divorce budget is crucial for financial independence. Consider your new living expenses, child support, spousal support, and any debts that will need to be managed individually. 

4. Protect Your Credit:
Divorce can impact your credit score, especially if you have joint accounts with your former spouse. When appropriate, consider closing joint accounts and establishing individual lines of credit to prevent negative impacts on your credit rating. Monitoring your credit report regularly will help you stay informed about any changes in your credit status.

5. Negotiate Fair Asset Division:
During divorce proceedings, the division of assets and debts will be a key consideration. It's important to negotiate a fair distribution of marital property and financial obligations. This may include real estate, retirement accounts, investments, and any jointly held assets. 

6. Plan for Retirement:
Divorce can have a significant impact on retirement savings and planning. Assess your retirement accounts and make necessary adjustments to your retirement plans. Consider the implications of dividing retirement assets and seek guidance on how to maintain financial security in retirement.

7. Update Legal and Financial Documents:
After divorce, it is essential to update legal and financial documents to reflect your new circumstances. This includes updating your will, beneficiary designations, insurance policies, and any powers of attorney. Ensuring that these documents accurately represent your wishes will assist in safeguarding your financial well-being.

8. Focus on Financial Independence:
Finally, prioritize your journey towards financial independence. Develop a long-term financial plan that aligns with your personal and professional goals. By focusing on building your own financial security, you can set yourself on a path towards a prosperous and independent future.

In conclusion, navigating divorce and finances requires careful planning and proactive decision-making. By gaining a clear understanding of your financial situation, seeking professional advice, and taking proactive steps to protect your financial interests, you can work towards achieving financial independence and pave the way for a secure financial future.

For over 15 years, Jeneen has been using her comprehensive knowledge of the divorce specific financial planning process to help her clients make the best decisions for themselves, their businesses, and their families. Contact Jeneen for a consultation today. 

Jeneen Slack, CFP®, CDFA®
Financial Advisor
CA Insurance License #: 0F54862
Summit Financial Group, LLC
O: 925.866.7800
jeneen@summitadvisors.com
www.summitadvisors.com

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Securities offered through Raymond James Financial Services, Inc., member FINRA /SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Summit Financial Group, LLC is not a registered broker/dealer and is independent of Raymond James Financial Services. 2000 Crow Canyon Place, Suite 450, San Ramon, CA 94583.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Jeneen Slack and not necessarily those of Raymond James. TR# 409153 DOFU 2-2024