The end of a marriage marks the close of one chapter in an individual’s life. That said, far too many Louisiana residents focus on divorce is an end, rather than as a new beginning. At the same time that the door will close on one chapter of life, another door opens onto a world of new possibilities. Re-evaluating financial goals throughout the divorce process can help make these possibilities even rosier, and can provide a new foundation of financial stability that will last for many years to come.
Spouses should begin by giving some thought to how they would like their life to be shaped in the years following their divorce. Very often, divorce involves significant downsizing on the part of both parties. That is not always a bad thing, and spouses should consider how they would like to structure their living arrangements once the divorce is made final. Selecting a less expensive housing option is a great way to set aside funds and bolster financial security.
Another topic that spouses should think about during the course of the divorce is how their retirement needs will change as a result of their altered family structure. Planning for retirement as an individual is often simpler than planning as a couple. Also, spouses who did not share their partner’s idea of an ideal retirement lifestyle now have the opportunity to structure their savings in a manner that suits their own goals and aspirations. Each individual will have a unique approach, depending on their age, current retirement savings and plans for the future.
For many Louisiana residents, focusing on the future is a great way to move through the challenging process of divorce. By remembering that this a springboard to an entirely new life, spouses are often able to make financial decisions from a position of objectivity, rather than from a position of emotional reactivity. That can mean a far more favorable divorce settlement, and a smoother path toward future goals.
Source: USA Today, “Divorce wiped me out financially. Here’s how I bounced back.“, Tamara Holmes, May 25, 2017