4 Keys to Independence with Financial Planning After Divorce

Divorced couple

I’m sorry that you’re looking for advice on financial planning after divorce, but I’m hopeful for two reasons.

1) I’m hopeful that after this divorce, there will still be a bright future for you.

2) I’m hopeful that the advice on this page will help you regain some clarity and confidence about your finances during this emotionally charged experience.

As someone who has gone through a divorce — and helped my ex-wife in understanding how to find financial stability with her settlement — I know what stress divorcees are under. You don’t want to run out of money, but you aren’t sure how to budget and guarantee your income. Not everyone has someone they feel comfortable to have this conversation with.

So here are a few keys to get your financial plan on track after your marriage.

Key 1: A Strategic Settlement Jumpstarts Good Financial Planning After Divorce

The first key to your financial stability is trying to get the best settlement for yourself. And I don’t mean the amount, but the source of that money.

Assuming you don’t have a prenuptial agreement, you might have decades’ worth of “what’s mine is ours” to sort through. And then there’s also the individual retirement plans and employee benefits that you were both planning to use.

Take into consideration every asset under discussion: credit and debt, checking and savings account, current income, property, 401 k or 403 b.

It might be tempting to simply take half of everything, but the money in a 401 k or Traditional IRA comes with hidden tax implications.

My financial advice when divorcing is get as little money as possible from taxable retirement accounts so that you can have a tax-free retirement.

A lawyer might rely on a Qualified Domestic Relations Order (QDRO) to make sure you get a part of a retirement account. But you risk getting less income thanks to the tax bill. You can learn more about the pitfalls in a Qualified Domestic Relations Order in this webinar on financial planning for divorced women.

Key 2: Security for Your Future with Holistic Financial Planning After Divorce

Once you have your settlement, what do you do with it? Let it sit in you bank account or invest it all in the next big thing?

Your quality of life depends now on getting a comprehensive financial plan for your goals and understanding the proper financial tools to get you from a to z without destroying your cash flow.

What sort of goals do I mean?

Spending your time with your children, family, friends, partaking in hobbies you enjoy — and not being held back by the thoughts of what could have been if you weren’t divorced.

How do you achieve those goals?

With good private wealth management habits, such as Individual Retirement Account (IRA) planning, tax planning, estate planning and investing in life insurance or another insurance policy as needed. Every situation is unique, so a holistic overview is vital knowledge for your success.

Key 3: The Forgotten Piece of Financial Planning After Divorce–Estate Planning

Whether your divorce is bitter or amicable, one thing is certain: your inheritance is going to look different.

After all the turmoil of court, it’s easy to not want to think about the future. You might already feel alone, and planning for death isn’t comforting.

Two points–

First of all, you don’t have to go through the divorce alone. We’ve compiled a list of resources for divorcees that can support you at this time.

Second of all, having your future affairs in order can provide peace of mind. You’ll know you’ve done all you can to plan for your loved ones.

A will that hasn’t been updated after a divorce can cause your former spouse and your other relatives a major issue.

A piece of your financial plan is to document your end of life arrangements. A sample checklist includes:

  • If you have a trust, does the trustee need to be updated?
  • Have you changed the beneficiary on your life insurance and Individual Retirement Account?
  • Is your will up-to-date?
  • Is your power of attorney accurate?
  • Do you have a health care directive?

It can be wise to work with an estate lawyer to make sure your details are arranged correctly.

Key 4: Empower Yourself With Help From an Fiduciary Financial Advisor – Get Our Book on Financial Planning After Divorce

Your financial independence begins with a strategic settlement, a comprehensive financial plan, and renewed estate planning.

If you feel confident about doing the research on your own, I applaud you.

Many women aren’t fully sure about their financial literacy, though. And even if they do have a good handle on their budget and paycheck, making a huge investment decision for the first time on their own seems daunting.

Can a financial advisor help with divorce?


Forbes has reported on how only 5% of women consult with a financial advisor during divorce — but why the other 95% would benefit.

You have financial goals and deserve to maintain your standard of living. Working with the right financial advisor can help you take ownership of your personal finance.

Alongside your divorce attorney, find a financial planner who can navigate unexplored opportunities during this difficult time to help you maintain your lifestyle.

For now, download my book below on navigating the investment of your settlement like an expert.

It’s a complimentary book as our gift to you during this difficult time.

Simply enter your email address below, and we’ll send it right over to you.

Get knowledge on:

  • What to look for when selecting a financial advisor
  • How to recognize the financial analyst you want to stay away from and don’t want to work with
  • What fees are an acceptable and reasonable cost you should be paying your advisor and additional fees found within your portfolio
  • What fees you should never pay and how to recognize and avoid them
  • How to determine if your portfolio is properly diversified
  • How to determine you’re not at high risk with your investment
  • When and how to rebalance your portfolio and what may happen if you don’t
  • How much money can you safely withdraw as income each month
  • Why market timing and individual stock picking doesn’t work
  • How to achieve peace of mind as an investor free from fear, worry, and anxiety

For some women, after court when they part ways with lawyer, they feel the most fear about what to do with the rest of their lives.

You don’t have to live with that stress. Take the first step on your new journey now.