Major life transitions, such as divorce, the loss of a spouse, or a career change, bring more than emotional weight. They often mean taking on greater responsibility for financial decisions that will influence your security and flexibility for years to come.
Taking time to adjust to the changes is essential, but your financial life doesn't pause. For many women, this may be the first time they're fully leading the financial direction of their household. A financial advisor can help you sort through the complexity, prioritize thoughtfully, and move forward with confidence.
Bringing Organization to Your Financial World
Following a divorce, you’ll likely face numerous financial changes and decisions. You may receive a large settlement, lose access to certain accounts, take on new debt, retitle assets and accounts to reflect your name change—the list goes on.
A financial advisor can help you get organized, identify and address the highest priority items first, and work through your extensive post-divorce to-do list. This helps you move through each decision deliberately, with a clear understanding of priorities and trade-offs. Your advisor can also help connect you with a new team of professionals as you continue separating your financial world from your ex-spouse.
Navigating Your New Financial Reality
Once the dust has settled, it’ll be time to take stock of where your finances now stand. Across the board, your monthly expenses and cash flow have likely changed. You may be covering more expenses on your own, making child or spousal support payments, or learning to handle certain financial responsibilities alone.
At the same time, you may be managing significant one-time costs tied to the divorce itself. Say you bought your spouse’s half out of the family home, or you’re paying off fees from attorneys, counselors, and other professionals. Divorce is often expensive, especially so when you’re dividing a complex or large estate.
A financial advisor can help you make sense of your new financial reality, clarifying which decisions need attention now and which can wait until life settles down. With new expenses, a different income, and redefined saving goals, you and your advisor can reevaluate your spending habits and priorities together.
Rebuilding Long-Term Savings and Investments
With your more immediate cash flow changes addressed, your advisor can help reassess your long-term financial goals, including retirement. The savings and investments you worked to build with your former spouse may have been divided in the divorce, leaving you with a smaller pool of assets for future goals—and less time to rebuild them.
An advisor can help you reevaluate your retirement timeline, adjust savings strategically, and consider other opportunities to address the funding gap you may now be facing to create a plan that reflects where you are today and where you want to go in the future.
Updating Insurance
Insurance policies tend to slip through the cracks during and after divorce, but eventually, you and an advisor may want to evaluate your coverage and consider where changes are needed. If you were on an ex-spouse’s health insurance, for example, a divorce makes you eligible for a special enrollment period—you’ll just need to acquire a new policy within 60 days from the date of divorce.
Other insurance policies to review post-divorce include:
Life insurance
Home and auto insurance
Disability insurance
Your advisor can help ensure your overall protection strategy aligns with your new responsibilities and long-term plans.
Changing Your Estate Plan
After a divorce, you and your advisor should review all aspects of your estate plan. This might include updating:
Your will (including executor)
Beneficiary designations
Healthcare proxy
Power of attorney
Trusts
Titles or deeds to property
If your ex-spouse was named as a beneficiary of any assets, accounts, or policies (like life insurance), update the appropriate designations and forms as soon as you’re able. Should something happen to you tomorrow, and your estate documents are outdated, your ex-spouse may be unintentionally entitled to parts of your estate.
Your advisor should be able to work with an estate attorney, either someone in their network or a professional you already know and trust. Once all documents have been updated and filed away, consider shredding and otherwise destroying outdated documents to avoid future contention.
Move Forward With the Support of a Trusted Professional
Divorce marks the end of one chapter and the beginning of another — financially and personally. The decisions now in front of you carry more weight: how to structure income, invest assets, update legal documents, and plan for the future on your terms. A financial advisor can help you approach each of those decisions with analysis, coordination, and a clear understanding of how they fit into your broader strategy.
At The Hatlestad Group, Aimee J. Hatlestad, CFP®, serves head-of-household women who are navigating complex financial transitions. As a fiduciary advisor, she helps clients evaluate trade-offs, coordinate with legal and tax professionals, and build a strategy that reflects their priorities today and long term.
If you’re moving forward after divorce and want a thoughtful financial partner to help you think through your next steps, we invite you to schedule a conversation.
The Hatlestad Group is an independent wealth management firm based in Edina, Minnesota, primarily serving successful head-of-household women, late-career executives, and pre-retirees. With a tailored approach to fee-only comprehensive wealth management, they empower clients to live out their next chapter with vision, wisdom, and resources, creating a purposeful and meaningful future. They can be reached by phone at (763) 259-3637, via email at info@thehatlestadgroup.com, or by visiting their website at thehatlestadgroup.com.
The information presented is based on sources believed to be reliable and accurate at the time of publication. This material is for educational purposes only and does not necessarily reflect the views of the author, presenter, or affiliated organizations. It should not be construed as investment, tax, legal, or other professional advice. Always consult a qualified professional regarding your specific situation before making any decisions.