During a divorce, far too many Florida residents focus on the money they are losing rather than the money they are gaining. While divorce does entail the division of marital wealth, each individual walks away from the property division process with a share of those assets. That money can be reinvested in a manner that is best for each individual. In this way, property division creates a need for investment planning.
In many cases, a spouse has a completely different set of financial needs after a divorce has taken place. Restructuring the way that one handles income, savings, debt and investments is all part of preparing for the future. Creating a plan for investing the proceeds of the property division process should be a top priority.
Most spouses benefit from engaging the services of a financial advisor during this time. That professional can evaluate the full scope of current finances, in addition to identifying goals for the future. With that information in hand, a financial advisor can guide an individual toward investments that are in line with those needs.
Determining one's level of risk is an important part of that process. As a single person, one's risk tolerance could be higher or lower than it was during the marriage. A number of factors combine to determine risk tolerance. They include existing debt, the age of one's children, their own age and projected employment information.
Divorce marks the end of one stage of a Florida resident's life. However, it is important to keep in mind that divorce is also a doorway to a new future. Achieving financial stability is the best way to support one's needs and goals, and property division is a critical component. A newly devised investment strategy is a great way to enter the next phase of one's life.
Source: CNBC, "Financial planning for divorce? It's not just for women", Beth Lynch, Oct. 2, 2017