Women & Divorce

Due to circumstances and ever-changing environment, many women are opting to leave their long-term marriages.  They are becoming more strategic in their decision-making when planning to dissolve their marriages. Moms are also aware of the challenges of being a single parent and the responsibilities they might have to shoulder should their partners not contribute financially in the future.

This is a daunting journey ahead.  It is a confusing time. There will be friends and family who will help and support you, but it is highly recommended that you seek professional advice from a financial advisor who can guide you in planning your budget in the short term, as well as your long-term expectations. Planning for retirement is a priority.

Here are some tips to consider when you are planning your new life:

Household budget

The first thing to look at is the overall household budget. In many homes the accounts are being paid by the husband, usually because he contributes more from a higher earning capacity. A budget spreadsheet should be drawn up itemising monthly payments. This must include essential expenses such as bond payments (or rentals), insurance payments, school fees, credit card repayments, mobile and internet contracts and monthly groceries. Lesser amounts such as children's extra mural activities, tuck-shop monies and entertainment (class birthdays and school holiday activities), should also form part of the budget.

Separation/divorce costs

The obvious costs in these situations are the divorce itself, moving from the marital home (normally if you going to rent, you are required to pay two months’ rent in advance), and the possibility of new appliances, should be tabled in a separate budget. You and your children might need counselling. Once all the new commitments are accounted for, you will have a better idea of your financial position and affordability.

Even with careful planning there will be hidden costs, so bear that in mind.

Advice

When seeking advice, look into the potential of an equitable share of hard assets as well as monetary assets. The laws governing spousal pension are important to obtain a fair settlement.  These conversations are vital especially if you are to become the main breadwinner in the family. A financial advisor is well-positioned to guide you.

Beware of the pitfalls of emotion-based decisions. Ask a financial advisor to assist. An experienced wealth manager will offer objective and sound financial advice and steer you in the right direction.

Planning is key to the success of your future and those around you.

March 05 2018 By Cassandra Ison Financial Planning