Separating from a partner can be a period of emotional upheaval and you may need to make significant adjustments to plans you’d previously made. Effective financial planning after divorce can help you remain on track to realise new aspirations.
Following divorce, it’s likely your priorities and goals have changed significantly. After all, previous plans were tied to another person and may no longer align with your aims. After a period of adjustments, it’s wise to return to your financial plan as a result. New goals may mean your current financial plan is no longer right for you. Taking the time to rethink what you want to achieve and how financial planning can support this, ensures you’re on the right track.
Divorce can also affect your financial situation. Your wealth may have increased or decreased, again affecting your financial plans. Financial planning after divorce is an opportunity to reassess plans you’ve already put in place and check to see if they’re still suitable given changes to your circumstances now.
Following divorce, it’s often the short-term finances we focus on. However, divorce could affect you over the long term too. For instance, you may find that a portion of your pension savings have been awarded to your ex-partner and this affects retirement plans. Financial planning after divorce can help put into perspective how changes will affect you now and in the future, allowing you to take steps to safeguard plans where necessary.