Divorce is often a challenging period, and especially for your financial planning.
- Financially preparing for a divorce
When you are preparing for a divorce, it is important that you consider the following:
- Draw up your own budget. Visit, create a budget for assistance.
- Get all the information about your assets (things you own) and liabilities (people you owe).
Change the beneficiaries for:
- Your life insurance;
- Your insurance you may have with your company;
- Your retirement benefits.
- Change/create a will and ensure that your wishes are accurately reflected.
- If you do not have your own bank account, open one and move your salary to that account.
- Consider obtaining your own car and home insurance. If you have separated, make sure that you have informed the insurance company so that you are adequately covered.
- If the divorce settlement does not provide for your medical aid, ensure that you have taken out your own medical aid before your ex-spouse has removed you from theirs.
- Guidance to ensure a fair financial outcome for both parties during divorce proceedings
Once divorce proceedings have started, negotiations are often tough and children are caught in between. To ensure a fair outcome ensure that:
- You have agreed on the maintenance expenses and have listed your expenses openly and honestly.
- If you are receiving maintenance, ask for a contractual income stream to be insured. This will assist you when something does happen to your ex-spouse.
- If you are receiving a settlement as part of a retirement fund, you need to consult with a CFP® professional to invest wisely for your retirement.
- After the divorce has been finalized
After the divorce has been finalized, you should do the following:
- Review you budget and ensure that you can afford all your expenses
- Ensure that you have updated and finalized your Will.
- Review your insurance to ensure that you are adequately covered and your beneficiaries have been updated.
- Review your personal retirement plan as the divorce may have impacted on your plan.
Consult with a CFP® professional to ensure that you will be able to achieve your personal financial goals.