Suddenly single
Ensure your financial independence
Going through a marital separation or divorce is fraught with emotions and questions. It may have taken years to get to this point and then quite abruptly, here you are, single. So many emotions have overwhelmed the situation: how are the kids coping with the news? Are your parents and family supportive? Where will you live? Will you have enough? The list goes on.
Fear about your financial future can be a major issue facing both high net worth individuals and the average Canadian. While you are suddenly single, it doesn’t mean you have to go through the process alone. Your network of experts, including your Investment Advisor, can help you minimize the uncertainty of this time by taking control of the understanding you have of the finances. Building a team around you who can provide guidance will help you work towards a good outcome from the process and eventual settlement.
Financial independence is driven in large part by earned income and lifestyle expenses. Is there enough money coming in to provide for the lifestyle you are used to? Perhaps child support or spousal support payments will form part of that equation or are still under negotiation at this point (for the payor and payee). While many individuals may have kept their personal finances separate from a spouse throughout the relationship, many have relied on jointly-owned bank accounts, credit cards, loans and mortgages for cash flow over the years.
Now is the time to ensure that your financial situation is in your control. Your new financial independence can be a way to gain better insight into your current financial picture and understand your needs to help you establish and achieve new goals. As you work towards the bigger picture, taking some practical steps as early in the process as possible will hopefully give you peace of mind while you cope with the emotional whirlwind.
To get started with understanding your current financial situation, here are some areas that should be addressed as soon as possible:
Create a financial plan
Working with a knowledgeable Investment Advisor is the best way to chart your path for the future. Now that you are single, understanding your lifestyle expenses, cash flow, ownership of assets and debt obligations will give you the control and insight to succeed in this next phase of life.
Next steps
These small steps could go a long way to giving you financial independence, control, and a plan for your future. At Richardson Wealth we can help by providing financial planning services for your needs. Contact your Advisor to get a copy of our comprehensive Divorce Checklist and to discuss how we can help you.
How to spot “invisible” cash flow
It is important to identify “invisible” cash flows while in the separation negotiation process in order determine fair equalization. Here are some scenarios to consider.
Read more.