The emotional upheaval of a divorce or the trauma of the death of a spouse, are the top two life events listed on the Holmes and Rahe Psychological Stress Scale.
Finding oneself newly or unexpectedly single can make it challenging when it comes to making decisions and planning for the future. It is crucial that if you don’t already have a professional relationship with a financial advisor, you need to find one you can trust. It is likely that the advisor will be able to recommend additional qualified experts such as a divorce or estate attorney and an accountant to add to your team.
Organize Information Regarding Assets and Cash Flow
You will need a clear picture of your finances so get organized. Create a balance sheet of your income and outflow. Doing so may seem overwhelming amid of so much change, but it’s the first step to securing your future. If you and/or your spouse had any separate accounts you need to include them to understand your asset, liability, and cash flow position fully. Your financial advisor will be able to evaluate different options for moving forward.
Financial Planning for the Future
Should you receive a lump sum amount of cash in the form of a property settlement, alimony, or inheritance, you will want to put in place a well-thought-out plan to ensure the sustainability of the funds over the long term. Your financial advisor will be able to assist you by running cash flow projections, and modeling projected rates of return including inflation variables, to give you confidence in your future security.
The Other Side…Your Estate Planning
Dealing with the details of a difficult transition, whether death or divorce, can be all-consuming, so it’s easy to lose sight of the other side of the situation. It is now critically important to review or create your estate plan, review both your life and property insurance, and update beneficiary designations. Powers of attorney and health care directives should also be updated so that trusted individuals are in a position to make important decisions for you should it become necessary.
Your One Financial Services Team is Always Here
At One Financial Services, we like to say that our clients are like family. That is not simply a slogan, it is our mission. As a One Financial Services client, should you be impacted by one of life’s most difficult transitions our team is with you every step of the way offering support and guidance toward a more secure future.