The end of a marriage can be a hectic time with a number of pressing obligations and a seemingly never-ending list of items on a Florida spouse’s to-do list. It is important to make time to review one’s financial goals during this time as they will differ now that the marital partnership is ending. Having a clear idea of where one would like to be after a divorce makes it far easier to map out a path to reach that destination.
Investments and savings are a great place to begin. When the marriage was intact, the savings goals that the family created were meant to benefit the couple as a unit. Now that each party will be responsible for his or her own financial standing, those goals will shift. One important part of saving and investment planning involves assessing one’s tolerance for risk. This changes over time and as a result of significant life events such as divorce.
For example, a spouse who is nearing retirement and will lose a considerable amount of her retirement savings will have a lower level of risk tolerance than a spouse who is at the beginning of his career and enjoys significant projected earnings. In the same way, a spouse who will retain his student loan debt along with half of the marital debt will have a different level of risk tolerance than a spouse who is able to walk away from the marriage with very low debt obligations. Determining risk tolerance is necessary in order to structure a revised savings and investment strategy.
This can be a difficult time for a Florida resident, but there are silver linings to be found. By focusing on savings and investment goals, a spouse is turning his or her attention to the future, and he or she is likely distracted from the stress and emotional turmoil that can come with divorce. In the best outcomes, the end result is a plan for a solid financial foundation and a less emotionally taxing divorce.
Source: The Huffington Post, “Newly Divorced? Focusing On Finances Can Help You Move On“, Bob Stammers, Jan. 29, 2016