Going through divorce is, in most cases, a tremendous emotional maelstrom. But, it’s not only your emotional wellbeing that needs rehabilitation; you also have to get that derailed train that is your financial life back on track! What used to be one joint income, one list of assets and one debt now become two and if you aren’t carefully involved in the aftermath, the consequences could be dire for your finances. In this two part blog series, we present to you five essential tips from Del Mar’s JKL wealth management professional, John Lohrenz, to help you get your finances out of the red and into the green, post-divorce.
# 1: Save, Save, Save
It can be tempting to hit your local shopping district and engage in some quality retail therapy, but divorce is a major drain on the finances. Lawyers are expensive and everything you previously regarded as your own is now being pulled in two separate directions. In Del Mar, JKL Wealth Management’s advisors suggest that in the months or even one or two years following divorce, you should focus on stashing away cash. Rehabilitating your financial life must begin with saving money as this will be vital for sustaining you and providing you with some much-needed security.
# 2: Money and Emotion Must Be Kept Separate
Money is one of the biggest sources of contention in many relationships and can even be the downfall. Now, as you wade your way through all the emotions and unpleasant responsibilities associated with divorce, it’s more important than ever for you to keep your head clear and your financial goals in focus. “Don’t allow your frustration, irritation, anger or depression to get in the way of the decisions that will best serve you in the long run,” urge Del Mar’s wealth management professionals.
It may be tempting to walk away and just let your partner keep everything; or it may be infuriating to see dollar after dollar disappear from your account. Instead of succumbing to emotion, you must accept the situation, diagnose the right legal course of action and focus on the end prize. Now would also be a good time to get your own team of experienced financial advisors and don’t hesitate to lean on them for counseling and advice!
If you have any questions at all or would like individualized investment advice from Del Mar’s John Lohrenz, please contact us at:
Phone: (858) 535-1705
Fax: (858) 535-1701
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731 S. Hwy 101, Suite 2K, Solana Beach CA 92075
Securities and Advisory services offered through LPL Financial, a registered investment Advisor. Member FINRA/SIPC.