The Divorce Is Over. Now What Do You Do With the Money?
The divorce is final. The assets have been divided. Now what? Tracy takes on the financial decisions that begin after the settlement is signed. Five things to consider before you touch anything.
5 takeaways from the conversation.
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01
Do not rush to invest the settlement. Before you touch it, ask what your life actually costs now: income in, expenses out, what is changing. You do not have to decide everything the day the divorce is final. Keeping cash while you plan is not fear, it is strategy.
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02
A $1M house is not the same as a $1M portfolio. Equal on paper is not equal in reality. A house has taxes, insurance, and maintenance, and you cannot pay for groceries with the guest bedroom. Check the cost basis on any investment you keep, because embedded capital gains can hide a tax bill inside the asset.
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03
Your ex’s portfolio does not have to be your portfolio. Your goals, income, expenses, risk tolerance, and timeline all just changed. The investments should reflect your financial life now, not your former spouse’s.
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04
Rebuild your financial infrastructure. Take a full inventory of what you own and where it is held. Update beneficiaries immediately across every retirement account, life insurance policy, and estate document. If you were married 10+ years, you may be eligible for divorced-spouse Social Security benefits. Know what you are entitled to.
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05
Never abdicate your financial life again. There is a real difference between delegating and abdicating. Hire the CPA, hire the advisor, but stay at the table. Financial confidence is not doing everything yourself. It is knowing enough to stay in control.
The Divorce Is Over. Now What Do You Do With the Money?
A one-page printable. Five financial decisions to consider after a divorce settlement.