3 Easy Financial Tips to Own Your Divorce Journey

Written by Hazel Secco, CFP ®, CDFA ®

Divorce is a life-altering event, and it’s crucial to approach it with careful consideration, especially when it comes to finances. The emotional toll can be overwhelming, but with the right financial strategies, you can take control of your post-divorce life. Here are three practical tips to help you navigate this challenging period.

1. Ask for Help

Divorce is not a journey you should undertake alone. Hiring a team of experienced professionals can make all the difference. While it might seem cost-effective to opt out of hiring professionals, this can lead to more significant expenses and potential long-term damage. Again, divorce is a major life event and the decisions made during the divorce process can make a significant difference in your post-divorce lifestyle.
Consider seeking the expertise of divorce professionals, including a divorce coach, therapist, and financial advisor, among others. Each brings a distinct skill set to the table, ensuring you receive comprehensive support tailored to your specific circumstances. While it may not immediately appear intuitive, a divorce therapist can offer valuable insights into financial matters. Divorce is a life-altering event that touches on all aspects of your life; it can be emotionally draining, potentially clouding judgment or leading to biases in significant financial decisions. As you address other facets of your divorce journey, a positive shift in your financial situation is likely to follow suit.

2. Know your worth

Thorough and precise documentation is crucial for a successful divorce settlement. Often, individuals submit Case Information Statements (financial affidavits) that are either incomplete or inaccurately prepared, potentially influencing the court’s decision. It is incumbent upon you to meticulously review your financial statements and tax documents, leaving no room for oversight. Many individuals undergoing a divorce opt to enlist the expertise of a specialized financial professional, like a Certified Divorce Financial Analyst (CDFA), to assist with this aspect. This can provide immense relief and ensure that all information is accurately and comprehensively recorded.
Don’t rely solely on your attorney to catch discrepancies. They work based on the information you provide them. Being diligent in this aspect ensures that your financial situation is accurately represented, setting the stage for a fair and equitable resolution.

3. Know the difference between Wants and Needs

Emotions can cloud judgment during a divorce, particularly when it comes to material possessions like the family home. It’s essential to differentiate between what you want and what you need. This clarity helps prevent unnecessary disputes and keeps the process moving forward smoothly.
By identifying your needs and goals, you provide a clear roadmap for your attorney to navigate negotiations. This prevents a contentious divorce and the ensuing costs, ultimately leading to a settlement that aligns with your true priorities.

Divorce is undoubtedly a challenging chapter in anyone’s life, but by following these three financial tips, you can regain control of your post-divorce future. Seek professional guidance to build a support network, meticulously document your financial position, and distinguish between your wants and needs. By taking these steps, you’ll not only weather the storm but emerge stronger and more financially secure on the other side. Remember, you have the power to own your divorce journey.

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