Divorce can be financially devastating to your financial security but also an emotional impact on your self-esteem and most importantly, a child’s well-being.
Divorce can have more of a financial impact than buying a house or saving for retirement.
- Child support, child custody, alimony
- Life insurance, retirement accounts, investment accounts
- Savings and asset division
Divorce means you need to take total control of your own financial planning. You may now be responsible for your own health insurance, life insurance and funding your child’s college savings plan.
Planning for the unexpected should be part of your financial planning.
Parents divorce for a number of reasons. It’s common for a child to accept blame when parents divorce. A child can feel sad, upset, frustrated or become protective of a parent. A child can also feel abandoned. These feelings are normal. Keeping as normal an environment as possible and including activities undertaken prior to the divorce can help your child adjust to the divorce.
Divorce can be a long and painful process. Your self-esteem can take a beating. Think positively and let go of the past. Set aside time to do something special for yourself and if you have a child, make sure you have special time with them as well.
Define what you want and need to feel financially secure. Think about your short-term and long-term goals. Picture your future. What do you see?
Does your financial planning include ways to attain your goals?
Develop a budget and make it a policy to pay yourself first before paying other expenses. Consider automatic payroll deductions to your savings account, retirement account and other investment accounts. Taking control of your financial planning will help eliminate the stress of reinventing your life.
There are many decisions to make after a divorce. Don’t lose sight of your personal financial planning goals.
Northwestern Mutual can help you learn about the potential alternatives available for money from your current retirement plan and offer suggestions to help you fill the holes in your retirement plan.
A college savings plan for your child can utilize a 529 plan or Coverdell Education Savings Account.
Northwestern Mutual can help you review your life insurance and disability insurance coverage to ensure you are protected from the unexpected.
Divorce doesn’t need to be an end. It can also be the beginning of a happy and prosperous life.