One of the biggest concerns people have who are going through a divorce is whether they will be okay financially when the divorce is over. They wonder what their life is going to be like in 10 years.
How to Have Financial Peace of Mind After the Divorce
If you received a lump-sum payment in your divorce, one way to have financial peace of mind is to invest it wisely. As part of the Collaborative Divorce process, you are given essentially a financial road map that is really your budget. It establishes how much disposable cash flow you are going to have for discretionary expenses.
You will be working with a financial professional that will make sure you follow the road map so that post-divorce you can achieve the goals you set for yourself. It is a good idea to look at your plan every six months to see if there have been any major financial changes in your life. If so, you can make the needed adjustments so you can still achieve your goals.
Have an Accountability Partner
Some people achieve their goals easier if they have an accountability partner who spurs them on. For example, it is easier to go to the gym if you have an accountability partner to go with you.
The same is true of your financial situation. If you write down your goals and share them with your partner, they are somehow more achievable.
It’s good if your partner is someone you can sit across from you at the table and ask you questions, such as, “Are you on track? What has changed? How do you need to modify this plan so you can still meet your goals?”
Modifications may be needed when you experience life changes like losing your job or changing jobs.
Beware of Being House Rich but Cash Poor
Do not fall into the trap of staying in a house that has a high mortgage and maintenance costs that drains your cash. You may end up not doing things you really want to do because you must pay for your house. Consider downsizing. You may enjoy life more with a lower house payment. Or, you can add more money to your retirement fund.
For answers to your financial questions, contact us at Heberger & Company An Accountancy Corporation. We assist in all types of divorce situations, including Collaborative Divorce.