Why Post-Divorce Budgeting Is So Important

    Divorce can change every aspect of a person’s finances, from their monthly income to their housing, taxes, and retirement portfolio. The financial planning solution that once worked for you during the marriage requires a “reset” to assess your immediate and future financial needs.

    Post-divorce budgeting accounts for your post-divorce income, assets, investments, and liabilities to create a realistic and sustainable plan to potentially meet your needs moving forward. There’s reassurance in knowing where you stand and what you can do to move further along your path toward financial security.

     

    The Post-Divorce Budgeting Process: What to Expect

    Assess Your Financial Situation

    The first step in post-divorce budgeting is to gather all of your financial documents, including pay stubs, bank statements, tax returns, and investment accounts. We use this information to determine what you own and what you owe.

     

    Identify Sources of Income

    The next step is to identify all sources of income. After a divorce, they may include alimony and child support, in addition to your regular salary. Research suggests that income often decreases after divorce, and this may necessitate some lifestyle shifts. If you did not work during the marriage, you may find yourself reentering the working world.

     

    Debt Management

    Debt management is another facet of post-divorce budgeting. Depending on divorce laws in your state and the terms of your agreement, debt can be treated as community property or divided equitably.

    We help you prioritize your debts, consolidate them if possible, and outline a realistic plan to possibly pay them down.

     

    Establish Healthy Credit

    We also review your credit report for errors and make recommendations to help you establish, rebuild, or maintain healthy credit. This is essential for securing good interest rates and obtaining loans as a single person.

     

    Staying on Top of Your Post-Divorce Financial Plan

    Your post-divorce budget is not the end of the financial planning journey. We don’t “set it and forget it.”

    Follow-ups are essential to evaluate your progress and make any necessary adjustments as your income and expenses change over time. We will recommend budgeting strategies and tools to track your spending and determine if and when it makes sense to reallocate funds or update your financial goals.

    As you move closer toward retirement, we take steps to reassess your contributions and review your Social Security benefits. Together, we’ll develop a financial strategy that aligns with your future goals, taking into consideration when you’d like to stop working and the lifestyle you envision for your retirement.

     

    Contact an EP Wealth Certified Divorce Financial Analyst Near You

    If you have questions about what your finances will look like in divorce, EP Wealth can help. Certified Divorce Financial Analysts (CDFAs) focus on the unique needs and concerns of clients embarking on this significant life change. Find an advisor near you to schedule an appointment and learn more about financial planning for divorce.

    DISCLOSURES:

    EP Wealth Advisors (“EPWA”) makes no representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information presented in this article. EPWA has used its best efforts to verify the information presented. However, EPWA cannot guarantee the accuracy or completeness of the information included. All expressions of opinion are subject to change without notice.

    Request an appointment with an EP Wealth Advisor when you have a minimum of $500,000 in investable assets – which includes qualified retirement plans (IRA, Roth IRA, 401(k), taxable brokerage, cash (savings / checking) and CDs. Investable assets do not include your home, vehicles, or collectibles.

    Hiring a qualified advisor and/or financial planner or working with a budgeting app does not guarantee investment success, and does not ensure that a client or prospective client will experience a higher level of performance or results. No guaranty or warranty is made that any direct or implied results or projections being represented here will be met or sustained.

    Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the rendering of personalized investment advice nor is it intended to supplement professional individualized advice.

    Content does not involve the rendering of personalized investment advice nor is it intended to supplement professional individualized advice. Always consult a financial professional regarding your unique financial circumstances.

    As the author of this piece, EP Wealth Advisors, LLC (“EPWA”) has tailored the messaging of this article to align with the categories, services, qualifications, capabilities and services that it offers and can service. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions with the appropriate professionals. EPWA makes no representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information presented. All expressions of opinion by the author are subject to change without notice.

    EPWA is not in the business of providing legal services or advice. Always consult your tax advisor and/or attorney regarding your specific situation.
    The Certified Divorce Financial Analyst (“CDFA®”) that are employed by EP Wealth Advisors, LLC are not practicing attorney, accountant, tax professional, or legal expert. All assessments and subsequent recommendations limited and are performed exclusively under the guise of financial planning. An attorney must be retained in order to professional and accurately assess legal options and/or to provide counsel. We also recommend consulting a CPA, accountant, or tax professional.
    Hiring or working with a CDFA® does not guarantee or ensure that a client or prospective client will experience encouraging or favorable results.
    The decision to work with a CDFA® professional will differ amongst clients and depend on individual circumstances of each respective client. There is no guarantee or warrantee that the services offered by EP Wealth Advisors, LLC and/or a CDFA® will satisfy your divorce service needs. Services offered by other professionals may align more to your specific needs.

    EP Wealth Advisors, LLC. is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability. Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions with the appropriate professionals. Content does not involve the rendering of personalized investment advice nor is it intended to supplement professional individualized advice. Please consult a professional Financial Advisor before applying any of the approaches or strategies made referenced directly or indirectly in this publication.

    The information presented here is not intended to be regarded as a complete list of things to consider, including but not limited to, categories, services, or qualifications that a client or prospective client should contemplate when assessing or comparing Financial Advisors and/or Firms. As the author of this piece, EP Wealth Advisors, LLC (“EPWA”) has tailored the messaging of this article to align with the categories, services, qualifications, and capabilities that it offers. There is no guarantee or warrantee that the services offered by EPWA will satisfy your financial services requirements. Services offered by other advisors may be more suitable to your specific needs.

    There is no guarantee nor is the intention of this article to establish any sense of assurance, that, if followed, the strategies referenced here will produce a positive or desired outcome. In fact, there is no guarantee or warranty that any of the steps detailed will enable the ability to achieve appropriate, successful, profitable or desired results. The possibility of unfavorable and unsuccessful results is not lessened by the information and strategies made referenced here.

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