Although divorce is an event that no one wants to plan for, it can happen to anyone. You’ve probably seen the statistics: by some measures, nearly half of all marriages in the U.S. now end in divorce. What’s more, the number of couples age 50 and over who are calling it quits has doubled since 1990.
Those in the midst of divorce may feel overwhelmed by the onslaught of changes and decisions confronting them — all at a time when they may not have the emotional capacity to think clearly about the future. Those lacking an investment background often feel particularly uncertain about their financial footing. For some, this may be the first time they are in charge of a large amount of assets, making it all the more intimidating to find themselves wholly responsible for securing their financial futures. They may feel especially defenseless in this area, because admitting their lack of knowledge can put them in a vulnerable position before they’ve had a chance to develop a strong, trust-based relationship with their financial advisor.
The best resource overwhelmed clients have is their financial advisor, who can help them navigate through tumultuous times and take control of their finances. Advisors partnering with such clients can help break the process down to a series of manageable steps. At each stage, the goal is to empower clients into make decisions that help support a secure financial future.
For advisors it may be prudent to suggest to clients in the midst of divorce that they take the following steps: