Financial Analysis & Planning

& Divorce

Introduction

Rebuilding your financial future after a divorce is an empowering step towards a new beginning. Our financial analysis and planning services are here to help you understand your current situation, set goals, and create a strategy for a secure and prosperous future. We’ll work with you to manage your finances with confidence, ensuring that you’re prepared for the exciting possibilities ahead. Let’s turn this challenging time into a foundation for a brighter financial future.

The Essentials

The top four areas you need to know about that support a smoother transition and stability during divorce.

Critical Tools Checklist

A comprehensive checklist to ensure you're protected with all the right questions, safeguarding you from potential divorce pitfalls.

Resources

Divorce calculators tools and resources you need to navigate your property division and next steps division with precision

Connect with an Expert

Get expert support and personalized guidance so that you can tackle your unique challenges with confidence.

The Essentials

Financial Analysis & Planning Essentials

Post-divorce financial planning is vital for establishing long-term stability and achieving your new life goals. A thorough analysis of your financial situation and a well-crafted plan will empower you to manage your finances effectively, set achievable goals, and build a secure future following your divorce.

Budgeting and Expense Management

Creating a detailed budget is crucial for understanding and managing your finances during this transitional period.

ESSENTIAL #1

ESSENTIAL #2

Retirement and Long-Term Savings

Ensuring financial stability for the future involves reevaluating retirement and long-term savings plans.

ESSENTIAL #3

Debt Management and Credit Repair

Effective debt management and credit repair are crucial for improving financial health and future borrowing capacity.

ESSENTIAL #4

Financial Planning for New Goals

Effective debt management and credit repair are crucial for improving financial health and future borrowing capacity.

Click on each "Essential" tab above to explore answers in the four key areas. Each tab will provide valuable information to help you navigate through these important aspects step-by-step.

Budgeting and Expense Management

Q: How do I create a budget that reflects my new financial reality after divorce?
A: Start with a thorough analysis of your post-divorce income and expenses. Consider using a zero-based budgeting method where every dollar is allocated to specific expenses or savings goals. This approach helps identify unnecessary spending and reallocates funds to essential areas. Also, review and adjust your budget periodically to accommodate changes in your financial situation.

Q: What should I consider when adjusting my budget post-divorce?
A: Factor in any changes in income, such as new job earnings or adjustments to alimony or child support. Additionally, reassess your living expenses, including any new costs related to your new home or lifestyle. Don’t forget to account for one-time expenses like moving costs or legal fees. Creating a separate budget for these transitional expenses can provide a clearer picture.

Q: How can I manage and reduce debt after a divorce?
A: Prioritize debts based on interest rates and emotional impact. Consider negotiating with creditors for lower interest rates or better payment terms. If possible, consolidate high-interest debts into a single loan with a lower rate. Creating a visual debt payoff plan, such as a debt snowball or avalanche method, can also help maintain motivation and track progress.

Q: What are some effective tools or methods for tracking my expenses?
A: Utilize advanced expense-tracking apps that offer features like real-time expense categorization and budgeting suggestions. Apps like YNAB (You Need A Budget) or PocketGuard provide insights into spending patterns and help identify areas for improvement. Additionally, consider using envelope budgeting for discretionary spending to maintain control over impulse purchases.

Q: How often should I review and adjust my budget?
A: Review your budget monthly and after any significant financial change, such as a new job or major purchase. Adjust your budget quarterly to reflect long-term trends and ensure it remains aligned with your financial goals. This regular review helps catch discrepancies early and ensures you stay on track with your financial objectives.

Encouragement: Navigating a new budget after divorce might feel daunting, but it’s a powerful step towards regaining control over your finances. With a detailed plan and regular adjustments, you can manage expenses effectively and lay the groundwork for a stable financial future.

Retirement and Long-Term Savings

Q: How should I adjust my retirement savings goals after a divorce?
A: Reassess your retirement goals by factoring in the impact of asset division and changes in income. Consider increasing contributions to retirement accounts, such as an IRA or 401(k), especially if you’re starting from a lower savings base. Explore catch-up contributions if you’re over 50, as they allow you to contribute additional funds towards retirement.

Q: What impact does divorce have on my retirement accounts, and how should I manage it?
A: Divorce may result in the division of retirement assets, which can affect your long-term savings. Understand the tax implications and penalties associated with early withdrawals or transfers. Work with a financial planner to ensure that the division is fair and that your retirement strategy remains on track. You may need to adjust your savings rate to compensate for any reductions.

Q: How can I start building or rebuilding my long-term savings after a divorce?
A: Begin by setting specific savings goals and automating contributions to your savings accounts. Consider exploring investment options like index funds or ETFs that offer diversification with lower fees. Engage in strategic financial planning to identify high-impact savings opportunities and maximize your return on investment.

Q: What are some strategies for investing for long-term growth post-divorce?
A: Focus on a diversified investment portfolio that balances risk and return. Consider low-cost index funds or target-date funds that adjust asset allocation as you approach retirement. Look into alternative investments like real estate or peer-to-peer lending for additional growth opportunities.

Q: How can I ensure I’m on track to meet my long-term savings goals?
A: Regularly review and adjust your investment portfolio based on performance and changing goals. Utilize financial planning software or consult with a financial advisor to create a personalized plan. Set up periodic check-ins to evaluate progress and make necessary adjustments to stay aligned with your long-term objectives.

Encouragement: Rebuilding your retirement and long-term savings post-divorce is a proactive step towards a secure future. With thoughtful planning and strategic adjustments, you can set yourself up for financial success and enjoy peace of mind as you move forward.

Debt Management and Credit Repair

Q: What steps can I take to repair my credit after a divorce?
A: Start by obtaining your credit report from all three major credit bureaus to identify inaccuracies. Dispute any errors that could negatively impact your score. Implement a plan to pay down outstanding debts and avoid new credit inquiries. Additionally, consider becoming an authorized user on a responsible person’s credit card to improve your credit history.

Q: How can I manage and prioritize paying off debt after divorce?
A: Create a debt repayment strategy focusing on high-interest debts first, such as credit cards. Use methods like the debt snowball (paying off the smallest debts first) or the debt avalanche (focusing on the highest interest rates). Regularly review your budget to ensure you are allocating sufficient funds towards debt repayment.

Q: What are some strategies for improving my credit score?
A: Maintain a low credit utilization ratio by keeping credit card balances below 30% of your credit limit. Pay your bills on time and avoid late payments, which can significantly impact your credit score. Consider using a credit-building product, such as a secured credit card, to help improve your score.

Q: How can I handle joint debts or shared accounts post-divorce?
A: Address joint debts by working with your ex-spouse to settle or transfer them to individual accounts. Ensure that all shared accounts are updated to reflect your individual responsibility and that any joint accounts are closed or separated. Monitor your credit report to ensure that you are not held responsible for debts that are not yours.

Q: When should I seek help from a financial advisor for debt management?
A: Seek help if you are overwhelmed by managing debt, struggling to improve your credit, or need guidance on creating a comprehensive debt repayment plan. A financial advisor can offer personalized advice and strategies to help you manage your debt effectively and improve your financial situation.

Encouragement: Managing debt and repairing your credit after a divorce can be challenging, but it’s a crucial step towards financial recovery. With dedication and the right strategies, you can improve your financial health and build a stronger credit foundation for the future.

Financial Planning for New Goals

Q: How do I set realistic financial goals after a divorce?
A: Begin by evaluating your current financial situation and identifying your priorities. Set specific and achievable goals using the SMART criteria (Specific, Measurable, Achievable, Relevant, Time-bound). Break down larger goals into smaller, manageable steps and create a timeline for achieving them.

Q: What should I include in a financial plan to ensure it supports my new lifestyle?
A: Your financial plan should cover budgeting, savings, investments, and debt management. Include strategies for adjusting to new living expenses, setting aside funds for future goals, and planning for major life events. Ensure that your plan aligns with both your short-term needs and long-term aspirations.

Q: How can I effectively save for major life events or purchases post-divorce?
A: Set up dedicated savings accounts for major life events or purchases, such as a down payment on a home or a vacation. Use automated savings tools to consistently contribute to these accounts. Prioritize these savings goals in your budget and track progress regularly to stay on target.

Q: How can I evaluate and adjust my financial plan as my situation changes?
A: Regularly review your financial plan and adjust it to reflect changes in income, expenses, or personal goals. Use financial planning tools or consult with a financial advisor to make informed adjustments. Periodic evaluations ensure that your plan remains effective and aligned with your evolving needs.

Q: What resources or tools can assist with financial planning and goal-setting?
A: Utilize financial planning software, such as Mint or Personal Capital, to track and manage your finances. Consider consulting with a certified financial planner for personalized advice and guidance. Explore online resources, such as budgeting calculators and goal-setting tools, to enhance your financial planning efforts.

Encouragement: Developing a financial plan for new goals is an empowering step towards a fresh start. By setting clear objectives and creating a comprehensive plan, you can confidently navigate this new chapter and work towards a fulfilling and secure future.

Essentials

Checklist

7 Step Financial Analysis & Planning Divorce Checklist

Reflect on Your New Financial Situation

Why This Matters: Understanding your new financial landscape is crucial for creating a solid plan for your future.

What to Do:

Review Your Assets and Liabilities: Take stock of your assets (savings, investments, property) and liabilities (debts, mortgages).
Assess Changes in Income: Consider any changes in income, such as new job, alimony, or child support.
Set New Financial Goals: Define what you want to achieve financially, such as buying a home, saving for retirement, or rebuilding your credit.

Questions to Ask Yourself:

What are my current financial strengths and weaknesses?
What are my short-term and long-term financial goals post-divorce?

Encouragement: Reflecting on your financial situation with a positive outlook helps you set realistic goals and take charge of your future.

Research and Identify Qualified Financial Planners

Why This Matters: Finding the right financial planner ensures you receive tailored advice and strategies for your new financial situation.

What to Do:

Check Qualifications: Look for Certified Financial Planners (CFPs) or other qualified professionals with experience in post-divorce financial planning.
Seek Recommendations: Ask for referrals from friends, family, or professionals who understand your situation.

Questions to Ask When Evaluating Financial Planners:

What is your experience with post-divorce financial planning?

What to Look For: Experience specifically in helping clients navigate financial changes after divorce.

What qualifications and certifications do you hold?

What to Look For: Certifications such as CFP (Certified Financial Planner) or CPA (Certified Public Accountant).

How do you approach creating a financial plan tailored to individual needs?

What to Look For: Customized planning methods that consider your unique financial situation and goals.

Can you provide references from clients with similar situations?

What to Look For: Positive testimonials or case studies that reflect success in similar cases.

Resources:

Divorce Advice Colorado (DAC): Trusted financial planners specializing in post-divorce financial planning. DAC Financial Planners.

Encouragement: Choosing a qualified financial planner will help you feel confident and supported as you navigate your new financial path.

Develop a Comprehensive Financial Plan

Why This Matters: A well-structured plan provides a roadmap to achieving your financial goals and securing your future.

What to Do:

Work with Your Financial Planner: Create a plan that addresses budgeting, debt management, investments, and savings.
Set Clear Milestones: Establish short-term and long-term goals with specific milestones to track progress.

Questions to Ask Your Financial Planner:

How will our financial plan address both immediate and future financial needs?
What strategies will you use to help me achieve my financial goals?
How often will we review and adjust the plan?

Encouragement: A comprehensive plan will empower you to move forward with clarity and confidence.

Review and Adjust Your Budget

Why This Matters: A budget helps manage your finances effectively and ensures that you stay on track with your new financial goals.

What to Do:

Create a New Budget: Account for your current income, expenses, and savings goals.
Adjust for Changes: Include adjustments for changes in income or expenses resulting from the divorce.

Questions to Ask:

What are my essential monthly expenses, and how can I manage them within my budget?
How can I allocate funds to savings and investments while covering my living expenses?

Encouragement: A well-managed budget will help you feel secure and in control of your financial future.

Plan for Retirement and Long-Term Savings

Why This Matters: Ensuring that you have a solid plan for retirement and long-term savings is crucial for long-term financial security.

What to Do:

Review Retirement Accounts: Assess the status of any retirement accounts and make adjustments as needed.
Explore Investment Options: Consider different investment vehicles to grow your savings.

Questions to Ask:

What changes should I make to my retirement accounts post-divorce?
What investment strategies will best support my long-term financial goals?

Encouragement: Planning for retirement and long-term savings will help you build a secure and prosperous future.

Address Debt Management

Why This Matters: Effective debt management is essential for maintaining financial health and achieving your financial goals.

What to Do:

Assess Your Debt: Review all existing debts and create a plan for repayment.
Explore Consolidation Options: Consider options for consolidating or refinancing debt if beneficial.

Questions to Ask:

What is the most effective strategy for managing and reducing my current debt?
Are there any debt consolidation options that could help me manage payments more easily?
Encouragement: Taking proactive steps to manage and reduce debt will improve your financial stability and give you peace of mind.

Monitor and Adjust Your Financial Plan Regularly

Why This Matters: Regular monitoring ensures that your financial plan remains effective and aligned with your evolving needs and goals.

What to Do:

Review Progress: Regularly check your progress towards your financial goals and adjust the plan as needed.
Update Goals: Modify your goals and strategies based on changes in your life or financial situation.

Questions to Ask:

How frequently should I review my financial plan and budget?
What indicators suggest that I need to adjust my plan or goals?

Encouragement: Regular reviews and adjustments keep you on track and ensure that you continue to make progress towards a bright and secure future.

Resources

Starting Fresh with a New Financial

Budget Calculator

Exploring New Income Streams

Navigating Finances as the Primary

The Financial Future Vision Board

Rebuilding Credit & Financial Stability

Calculators

Financial Analysis & Planning

& Divorce

Introduction