The end of a marriage brings about a great many changes in the lives of Maryland residents. One area of change with significant impact involves personal finances. Once a divorce has taken place, individuals must take the time to consider how their needs and goals have changed and make the appropriate adjustments. Part of that process is evaluating the level of risk with which an individual is comfortable.
For example, many married couples allocate a significant portion of their monthly income toward retirement savings, due to the fact that only one spouse is bringing in a significant income and enjoying an employer-assisted retirement plan. Divorce may require that the retirement plan be divided evenly between spouses. However, once a divorce has taken place, the spouse who has a well-established career can make up for those losses in a relatively short period of time.
That means that he or she may also have an increased risk tolerance and can aggressively pursue investments. Doing so would require a new budget and a long term plan for reaching newly defined goals. Understanding how much risk one can prudently take on is key to a successful outcome.
For those in Maryland who are moving through divorce, it is important to consider how the post-divorce financial landscape might look. Having an idea of what the future might hold can make it far easier to structure a budget to meet revised needs and goals. After all, finding financial stability after divorce is a goal that is shared by virtually every divorcing spouse.
Source: The Huffington Post, "Newly Divorced? Focusing On Finances Can Help You Move On", Bob Stammers, Jan. 29, 2016