When going through this life transition, it’s quite challenging to adjust to your new “financial reality.” Your income is cut in half, but it’s not likely that your outgoing cash expenditures will be cut in half. It may take a few months for you to adjust to your ‘new’ standard of living, but it’s important to spend within your means and adjust your cash flow out to meet your cash flow in. You’ll want to make sure that you have plenty of money saved up for your retirement since the previous ‘retirement plan’ that you had is no longer valid. If you received any liquid assets as a part of the divorce settlement, try not to dip into those assets much after the first few months.
It’s important that you meet with a financial advisor as soon as you can, in order to put a new plan in place. The sooner you can regain your sense of financial security, the sooner you’ll be on your way to discover all that your new life has to offer you.
Also, you’ll also want to schedule a meeting with an estate attorney to update your will. This should be done as soon as you separate, or know that you are getting a divorce.
Keith Powell, Certified Financial Planner® and Divorce Analyst™
www.austindivorceplanners.com firstname.lastname@example.org 512-963-6883