Planning Your Finances for Life After Divorce

Ending a marriage brings major financial changes. In this week’s episode of How to Split a Toaster, hosts Seth Nelson and Pete Wright talk with financial planner Stacy Francis about how to prepare your finances for a stable life after divorce. They also tackle a listener question on calculating living expenses post-split.

Stacy Francis is a certified financial planner who founded Francis Financial, a wealth management firm specializing in divorce and widowhood planning. She shares her expertise on financial models for equitable distribution, budgeting, managing real estate, and more.

Key Discussion Points

• Creating a detailed post-divorce budget based on your new lifestyle. Look at current monthly spending and categorize as "needs," "wants," and "savings."
• Formulas for dividing assets - no more than 30-40% should be real estate.
• Tips for affording your marital home post-divorce or downsizing to renting. Prioritize kids' needs.
• Keeping divorce from negatively impacting kids' futures. Communicate about college savings.
• Becoming an authorized user vs. account holder on credit cards and loans. Check your credit report.
• Withdrawing retirement funds penalty-free due to divorce, but taxes still apply.
• Overview of Savvy Ladies, Stacy's nonprofit for vulnerable women.

Listener Question Addressed

• How to calculate general living expenses and budget for life after divorce when household income is split.
• Implications of receiving the house but little retirement savings in equitable distribution.

Key Takeaways

• Create a detailed budget tracking current spending to plan for your post-divorce lifestyle.
• When dividing assets, be strategic about taking retirement funds vs. cash.
• Communicate with kids about how divorce will impact college savings and their futures.
• Always check your credit report to see accounts you're attached to.
• Savvy Ladies provides financial advice for vulnerable women.

Get essential tips on how to financially prepare for your next chapter after divorce from expert Stacy Francis on this week's How to Split a Toaster!

Links & Notes

• Seth’s Sample Financial Affidavit
• Check out You Need a Budget
• Get your free credit report
• Green Credit
• Schedule a consult with Seth
• Got a question you want to ask on the show? Click here!

• (00:00) - Welcome to How to Split a Toaster

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