Securing your financial life after divorce

Ester Ochse

Divorce can have a substantial impact on an individual, especially where finances are involved and where a settlement agreement has been reached by both parties.

It is advisable to look at your financial position holistically and start a financial journey in the right direction over a long-term period. Areas that need to be prioritised include:

Your budget

Identify and prioritise negotiable and non-negotiable expenses in order to meet all your household needs at the end of the month.

Your will

Update your will to ensure your assets are allocated to the beneficiaries you want. There’s a threemonth grace period to update wills. Once it lapses and the will hasn’t been changed the previous will stands.

Your insurance policies

Reconsider your insurance needs. For example, if your exspouse was responsible for covering house and household contents insurance, you’ll need to get your own policy. Update your details on policies such as life cover to reflect the names of your preferred beneficiaries.

Retirement goals

After a divorce, your retirement goals may change. Re-evaluate your goals and ensure you’re making enough contributions to retire comfortably.

This is especially important if you had to share your pension contributions with your exspouse in the divorce settlement.

Emotional, physical wellbeing

People often make unwise decisions in moments of heightened emotions or weak physical health brought on by stress.

It’s advisable to approach your financial affairs in a balanced, objective way to avoid making financial decisions that you’ll later regret.

In this tough period consumers are advised to be extra cautious about how they handle their financial affairs. It’s recommended you enlist the services of a certified financial advisor and seek counselling to ensure you approach your new status with a holistic, balanced, healthy and positive mindset in order to safeguard the future of those who depend on you.

Ester Ochse is product specialist at FNB Wealth and Investments

Look at your financial position holistically and start a financial journey in the right direction over a long-term period.