How to Rebuild Your Savings and Retirement After Divorce

Financial Planners

Divorce lawyers often broker such deals. But Christina George, wealth manager and partner at Northstar Financial Planning in Windham, New Hampshire, said the way they approach the couple’s wealth may differ from how financial planners view it. rice field. For example, keeping a house could “exchange assets” in an “apples-not-apples” way, George said.

George pointed out that one of the biggest changes that a divorce will bring is a change in how individuals are taxed. George said it’s important to have tax projections along with the divorce decree, as it can be confusing for women applying for head of household for the first time.

Without professional guidance, one ex-spouse could be in financial trouble. Stories of people who, after selling their family homes, were forced to relocate to other states to squeeze out the most of their now-few retirement savings as prices caught up with the gentrifying local housing market. There are many.

After the divorce, Stevenson switched from part-time to full-time work. Karen D. Sparks, a certified divorce financial analyst in Santa Clara, Calif., said this required a reskilling career training for many older women, factoring that into their post-divorce budgets. Eventually, however, Stevenson’s hours worked less and she is now in debt, on a tight budget and unable to save.

Dawn Pick Benson, 50, is a copywriter and travel coach living in Grand Rapids, Michigan. When she filed for divorce from her husband of 18 years in 2018, she hired a lawyer to negotiate the division of her home, sailboat and two ships. While she had a car, joint savings and checking accounts, and individual savings and retirement accounts for each spouse, Ms. Benson’s retirement benefits were less. But she had no idea what split would make sense in the long run, or what trouble she might run into if she chose the wrong lawyer. Panicked, she contacted Liza Caldwell, co-founder of SAS for Women, an organization that provides her divorce coaching and other educational resources.

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