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Why Women Need Financial Advice During Divorce

When a woman is going through a divorce, she often feels overwhelmed and vulnerable. 

It is 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 talk about why it’s crucial for women to seek financial advice during divorce and not just rely on legal advice. 

Legal advisers are not financial advisers

When you hire a lawyer during your divorce, their primary focus as it should be, is on the legal aspects of your case.  

They help you navigate the courts, negotiate settlements, and represent 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 come up with strategies to ensure that you get the best settlement for your circumstances.  

For example, you may be better to transfer some of your superannuation to your ex in exchange for keeping more of the cash, that is needed to purchase a new home. Or in conjunction with help from your adviser you may want to keep more of your share portfolio as you may need the passive income to top up your lower earnings. 

These are things that can only be determined by a financial adviser, but the strategies need to be shared with your lawyer so that together they can help you financially not just legally through this very difficult time.  

This will help you make informed decisions and prevent you from making costly mistakes. 

 

Understanding Your Financial Status 

Usually, couples have joint accounts, and it can be hard to understand every financial decision made over a long period.  

It’s vital to know the actual value of assets, debt, and income sources.  

It would help if you had a clear picture of your financial situation to make informed decisions during the divorce process. This is where financial advisers come in handy, as they can help gather information on assets, liabilities, and future cash flows in the divorce agreement.  

Additionally, financial advisers can identify potential tax implications associated with property settlements. 

 

A financial adviser can help you plan for the future 

Divorce is not just about dividing your current assets, but 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 help you plan for retirement, calculate settlement needs, and determine what financial strategies are best for your future. This will help you make informed decisions that will benefit you in the long run. 

 

Your financial situation will change after your divorce 

Divorce significantly impacts your financial situation.  

You may go from being a two-income household to a single-income household, which can be challenging. A financial adviser can help you create a budget plan, manage your debt, and rebuild your credit. They can also help you plan to invest your money to grow your wealth. 

 

Financial advice can protect you from financial abuse 

In some cases, unfortunately financial abuse is an issue in divorce.  

A spouse may try to hide assets or income during the divorce proceedings. A financial adviser can help uncover those financial abuses. The adviser can check bank accounts, credit reports, and scrutinise financial documents to ensure that assets are being disclosed. 

 

Peace of mind is priceless 

Let’s face it divorce can be stressful and emotional.  

But 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 feel more confident about the financial decisions you have to make during and after the divorce.

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. 

 

Understanding Your Financial Needs 

The divorce process can be consuming, from caring for kids to finding a new place to live. It’s key 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. 

 

Seek 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 

Divorce can be costly, and you need to ensure that you keep as much of your assets as possible. You need to understand what a fair and equitable division of assets is and whether you are getting your fair share.  

Financial advisers can help you gain insight into tax implications, different asset classes, and debt repayments. With a good understanding of your investments, it’s less likely to settle for less than you deserved. 

 

Avoid 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. 

 

Planning for Your Future 

 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. 

 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.  

 It is essential to seek expert 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.