Navigating Divorce: Securing Your Financial Future

 

Divorce is a life-altering event that can leave anyone feeling unmoored, especially when it comes to managing finances. Rick Morson of Morson Carson Wealth Counsel emphasizes the importance of taking proactive steps to secure your financial future during this challenging time.

 

Addressing Financial Challenges Post-Divorce

"Whether you initiated the separation or not, the end of a relationship brings financial challenges that need attention," Rick explains. "From ensuring your children are cared for to maintaining your standard of living, it's crucial to approach your finances with a clear plan."

 

Understand Your Current Financial Status

One of the first steps Rick suggests in reclaiming financial independence is understanding your current financial status. "Divorce can sometimes reveal financial habits you may not have been fully aware of, particularly if one partner handled the finances," he notes. Obtain a copy of your credit report and address any issues that may have surfaced. "Make sure you've established your own financial history, this includes setting up your own bank accounts, credit cards, and other financial tools," Rick adds.

 

Update Your Estate Plan

Updating your will is another critical step. Divorce can change the dynamics of your estate plan, so it’s essential to ensure that your assets are distributed according to your new circumstances. Rick recommends reviewing beneficiary designations on accounts like RRSPs, pensions, and life insurance policies to reflect your current wishes.

 

 

Establish an Emergency Fund

As financial negotiations during a divorce can be lengthy, Rick highlights the importance of setting aside an emergency fund to cover unexpected expenses. "This is especially important if you're negotiating alimony or child support payments. Having a financial cushion gives you more flexibility," he advises.

 

Reassess Business Interests

For individuals who own a business or are involved in a family trust, Rick stresses the importance of reassessing any roles your former partner may have held. "Updating trustees or corporate directors is essential to maintaining control over your business interests," he points out.

 

Create a Comprehensive Financial Plan

Finally, Rick recommends creating a comprehensive financial plan to navigate this new chapter with confidence. "Understanding your lifestyle expenses, cash flow, and debt obligations will give you the insight needed to make informed decisions about your future," Rick explains. His team at Morson Carson Wealth Counsel is ready to support you through this process with tailored financial planning services.

 

Take Control of Your Financial Future

Divorce can feel overwhelming, but you don't have to go through it alone. Reach out to our team  for the guidance and support you need to regain control of your financial future. We're here to help you every step of the way.