5 Things to Consider When Divorcing
1. The importance of a sustainable budget. Clients need to honestly assess what is necessary versus unnecessary, then create a budget that he or she can actually stick to.
2. Mitigate Risk. Clients should give thought to the insurance coverage that they may need. They may potentially need life insurance, umbrella, homeowner’s, renter’s insurance.
3. Retirement Savings. Dividing retirement savings between former spouses generally results in a less-than-rosy retirement picture. It is critical to reassess the clients’ goals, assets and overall plan.
4. Estate Planning and Beneficiary Designations. After the divorce is settled, estate planning is a significant task that is often overlooked. Death is inevitable, and planning for it should not be an afterthought. This is a great time to review wills, beneficiary designations and the titling of property.
5. Create a Long-Term Plan. While a budget will help guide a client for short term goals, a comprehensive financial plan will provide them a long-term road map that can last a lifetime. A good financial plan merges all of the previously mentioned considerations and then some. It is a valuable way for clients to understand their financial picture.