When a woman is going through a divorce, she often feels overwhelmed and vulnerable.
And it’s easy to get lost in the legal complexities and forget about the financial implications of ending a marriage.
While a lawyer can help you navigate the legal system, seeking out financial advice is equally important.
So, let’s discuss why it’s crucial for women to seek financial advice during divorce and not just rely on legal advice.
Legal Advisers vs. Financial Advisers
When you hire a lawyer during your divorce, their primary focus is on the legal aspects of your case.
They assist you in navigating the courts, negotiating settlements, and representing you in court.
However, they may not have a thorough understanding of your finances. A financial adviser can help you understand your assets, liabilities, and the tax implications of dividing them.
A good financial adviser will work with your lawyer to devise strategies that ensure you receive the best settlement for your circumstances. For instance, you may be better off transferring some of your superannuation to your ex in exchange for keeping more cash, which is needed to purchase a new home. Or, with guidance from your adviser, you may decide to keep more of your share portfolio, as you may need the passive income to top up your lower earnings.
These are considerations that can only be determined by a financial adviser, but these strategies need to be shared with your lawyer so that they can collectively assist you both financially and legally during this challenging time.
This approach will help you make informed decisions and prevent costly mistakes.
Understanding Your Financial Status
Many couples share joint accounts, making it challenging to get a clear picture on every financial decision made over an extended period.
However, it’s crucial to know the true value of all assets, debt, and income sources. This clear understanding of your financial situation empowers you to make more informed decisions during the divorce process. Financial advisers play a vital role in this regard, assisting in the collection of information regarding assets, liabilities, and future cash flows in the divorce agreement.
Additionally, financial advisers can pinpoint potential tax implications linked to property settlements.
Protection from Financial Abuse
In some cases, financial abuse is an issue in divorce.
A spouse may attempt to conceal assets or income during the divorce proceedings. A financial adviser can help uncover these financial abuses by checking bank accounts, credit reports, and scrutinising financial documents to ensure that all assets are being disclosed.
Planning for the Future
Divorce is not just about dividing your current assets; it’s also about planning for the future.
A financial adviser can help you understand the long-term financial implications of your decisions. They can assist you in planning for retirement, calculating settlement needs, and determining the best financial strategies for your future. This will enable you to make informed decisions that will benefit you in the long run.
Adapting to Your New Financial Situation
Divorce can significantly impact your financial situation.
You may transition from a two-income household to a single-income household, which may be challenging. A financial adviser can help you create a budget, manage your debt, and rebuild your credit. They can also guide you in investing your money to grow your wealth.
The Value of Peace of Mind
Divorce can be an incredibly stressful and emotional experience.
Knowing that you have a comprehensive financial plan in place can bring a sense of relief and peace of mind. Working with a financial adviser will help you to feel more confident about the financial decisions you have to make during and after the divorce.
Understanding Your Financial Needs
The divorce process can be all-consuming, from caring for kids to finding a new place to live. It’s crucial to understand how much money you need to live and support your children post-divorce.
Financial advisers can help you assess your lifestyle needs, career goals, and investment strategies. Your financial adviser can help you identify the cost of living after the divorce and develop a new financial strategy tailored to your needs.
Seeking a Fair Financial Settlement
When it comes to divorce settlements, many women only consider short-term finances.
However, a financial adviser can help you assess the long-term implications of any decisions made during the settlement agreement.
They can analyse the potential risks and rewards of various settlement options and provide objective advice on whether accepting a particular offer would be wise in the long run.
With a qualified financial adviser, women can ensure that they get what they deserve in terms of property division and financial security.
Protecting Your Assets
You need to understand what a fair and equitable division of assets is and whether you are getting everything you are entitled to.
Financial advisers can help you gain insight into tax implications, different asset classes, and debt repayments. With a good understanding of your investments, you’re less likely to settle for less than you deserve.
Avoiding Financial Mistakes
Divorce can be an emotionally tumultuous time, and it’s easy to make hasty financial decisions.
But the wrong decision can have repercussions for years to come. Emotions can lead to mistakes, which could result in financial problems for you and your family later down the line.
A financial adviser can help guide you through this difficult period, ensuring that you make smart decisions that will benefit you and your family over time.
Setting Goals for the Next Chapter
After the divorce, you are heading into a new phase of your life. Your finances need to align with your long-term goals.
Having a financial plan in place will help you stay informed and financially secure and prepare yourself for what’s ahead. Financial advisers can create personalised investment plans that cater to your individual needs for a better future.
Empowering Women through Financial Advice
Divorce is an emotional and challenging time for anyone, but for women, it can be even more so.
By seeking out financial advice, you can ensure that you are making informed decisions that support your financial future.
Financial advisers have the expertise to help you through the process of dividing your assets, planning for the future, managing your debts, and protecting yourself from financial abuse.
Remember, while your legal adviser is there to represent you in court, a financial adviser is there to advocate for your financial well-being.
A final word
Divorce is primarily a legal process, but the financial repercussions can last a lifetime.
Without proper financial management during a divorce, you could end up making poor financial decisions that will impact your future.
Consider seeking expert and qualified financial advice tailored to your unique needs .
A financial adviser will help you navigate the tough financial decisions, identify any potential risks, and give you clarity throughout the divorce process.
Protect your financial position during this trying time by seeking the right financial advice.
Got Money Honey has caring female financial advisers, with vast experience in supporting women through divorce.
Get in touch with us, download free resources or learn more in our special section dedicated to this topic.