Six Tips for Getting through a Divorce with Finances Intact

Getting through a divorce with finances intact

Divorce is ugly: You were once in love — you had a picture of the future that involved you and a significant other — and now you’re grappling with the terribly disappointing reality that you are going to have to split the life you’ve built with that other person. It can be incredibly emotionally draining.

Unfortunately, a lot depends on you making rational decisions and keeping your emotions under control. Otherwise, your divorce can prove financially draining as well.

Here are six actions you need to complete to ensure you leave your divorce with your finances intact.

  1. Don’t neglect debt and loans.

Oftentimes, divorce is characterized by two people focused solely on keeping as many of their assets as possible. In doing so, they forget about debt and loans. Of course, you should focus on your divorce proceedings, but don’t neglect everything else.

If you don’t have automatic withdrawal set up to pay monthly bills, consider doing so at least just during your divorce.

  1. Prepare for a lifestyle change.

The sooner you recognize that a change in your relationship status means a change in your current standard of living, the better off you’ll be financially. Whether you were working or not before your divorce, the money you bring in now is all the money you’ll be making. Your income is no longer a part of your financial picture, it’s the whole picture.

  1. Figure out what to do with your house.

This can be one of the most complicated aspects of a divorce, and it hinges on whether you have children or not.

If you don’t have children, you should consider selling your house and splitting the cash. This is usually the fairest way to handle mutually owned property.

However, if you do have children, moving out might not be an option. In this case, you should consult your lawyer about options that are available.

  1. Split the assets in your portfolio.

This is not as easy as “Sell your stocks and mutual funds and split the cash.” That is an option, but you’ll be subject to taxes and fees that will probably not make the cash payout worth it.

Instead, you should work with your lawyer and with a financial advisor to decide who will take away what from your portfolio.

  1. Become financially independent as quickly as possible.

Cancel all joint accounts and all joint credit cards. Secure a copy of your credit score.

Research what kind of insurance you need, and make sure you choose an amount that is suitable to your new standard of living. You will likely not need the same amount in coverage you did before the divorce, so you can anticipate cheaper insurance.

  1. Don’t just bring a lawyer into the picture; work with a financial advisor as well.

A divorce lawyer is essential for a divorce, but a financial advisor is an important member of the team, too. For example, an advisor has more expertise in projecting asset outcomes than a divorce lawyer. When you’re working with a portfolio, an advisor can help you agree to sound conditions. An advisor can also help you design a new budget.

Divorce is not easy. Not only is it an emotional time in your life; it’s also a time that can have a significant financial impact long after the divorce is finalized. By considering debts, loans, housing, assets, and insurance, you can ensure you are on the right financial track.

You don’t need to go it alone. McLean’s financial advisors are available to help you today.

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McLean Asset Management Corporation (MAMC) is a SEC registered investment adviser. There are many different interpretations of investment statistics and many different ideas about how to best use them. Past performance is not indicative of future performance. The information provided is for educational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy or sell securities. There are no warranties, expressed or implied, as to accuracy, completeness, or results obtained from any information on this presentation. All investments involve risk.

The information throughout this presentation, whether stock quotes, charts, articles, or any other statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe to be reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission there of to the user. MAMC only transacts business in states where it is properly registered, or excluded or exempted from registration requirements. It does not provide tax, legal, or accounting advice. The information contained in this presentation does not take into account your particular investment objectives, financial situation, or needs, and you should, in considering this material, discuss your individual circumstances with professionals in those areas before making any decisions.

The content of this publication reflects the views of McLean Asset Management Corporation (MAMC) and sources deemed by MAMC to be reliable. MAMC is a SEC registered investment adviser. There are many different interpretations of investment statistics and many different ideas about how to best use them. Past performance is not indicative of future performance.

The information provided is for educational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy or sell securities. There are no warranties, expressed or implied, as to accuracy, completeness, or results obtained from any information on this presentation. The information throughout this presentation is obtained from sources which we, and our suppliers, believe to be reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission there of to the user. MAMC only transacts business in states where it is properly registered, or excluded or exempted from registration requirements. It does not provide tax, legal, or accounting advice.

The information contained in this presentation does not take into account your particular investment objectives, financial situation, or needs, and you should, in considering this material, discuss your individual circumstances with professionals in those areas before making any decisions.

 

McLean Asset Management Corporation (MAMC) is a SEC registered investment adviser. The content of this publication reflects the views of McLean Asset Management Corporation (MAMC) and sources deemed by MAMC to be reliable. There are many different interpretations of investment statistics and many different ideas about how to best use them. Past performance is not indicative of future performance. The information provided is for educational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy or sell securities. There are no warranties, expressed or implied, as to accuracy, completeness, or results obtained from any information on this presentation. Indexes are not available for direct investment. All investments involve risk.

The information throughout this presentation, whether stock quotes, charts, articles, or any other statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe to be reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission there of to the user. MAMC only transacts business in states where it is properly registered, or excluded or exempted from registration requirements. It does not provide tax, legal, or accounting advice. The information contained in this presentation does not take into account your particular investment objectives, financial situation, or needs, and you should, in considering this material, discuss your individual circumstances with professionals in those areas before making any decisions.