DIVORCED? 5 Financial Mistakes to Avoid in Your Next Chapter
Financial advisor Amy Begnaud draws on professional and personal experience to help women work toward a financially stable future after divorce.
When a divorce is finalized, it often brings a sense of relief. That respite, however, can be short-lived, as this is when important questions need to be answered to help support a financially secure and comfortable future.
“At times, one area of overwhelm has been exchanged for another,” Amy Begnaud says. “I know firsthand from my own experience with divorce, once the settlement is signed and the lawyer’s job is done, there is still so much to undertake such as living within a new budget and dividing the assets and accounts to name a few.”
As a financial advisor and Certified Divorce Financial Analyst® (CDFA), Amy and her team have the professional acumen to guide women through the complicated terrain during and after a divorce. And as a woman who has gone through a divorce herself, Amy also has the personal connection to understand this emotionally taxing and vulnerable period.
“It’s about having someone in your corner,” she says. “When you’re swimming in such unfamiliar waters, it’s helpful to have someone you trust there to provide guidance and support.”
During her own divorce, Amy found that support in her father and business partner, Gary Begnaud, a seasoned financial advisor who could offer a professional set of eyes and ears to help guide her. The experience also led her on a career path to help other women in similar positions.
Now, almost 20 years later, Amy sees herself as a mirror image of many of the women coming to the Begnaud Wealth Management Group doorstep. They tend to be women in their 50s (and 60s and 70s), educated, experiencing divorce and they are looking for much-needed guidance to avoid financial missteps in the next stage of their lives.
“My job is to help you plan, to consider your financial needs over the next 30-40 years,” Amy says, “so you’re better positioned to pursue your goals on the other side of divorce.”
To help women best understand what they need to consider in their next chapter post-divorce, Amy discusses five mistakes that may come up—and how to avoid them.
1. Not rebuilding the financial plan around your new life
There comes a time in many divorces, Amy explains, when all parties involved are emotionally spent and just want the process to be over. “Even if it’s not a fair settlement, even if it’s not going to really support you financially,” Amy says. “Don’t settle for that. Before agreeing to a settlement, consider working with qualified legal and financial professionals to evaluate whether it is appropriate for your circumstances and long-term financial needs.”
2. Making major financial decisions too quickly
“Without a thorough attorney or a CDFA®, individuals can make financial decisions too quickly or in haste,” Amy says. A woman may decide to keep the house and give her spouse all of the retirement accounts because they appear to be equal in value. But you can’t buy bread and milk with home equity, Amy points out. “Fifty-fifty is not always fair,” she says. “A crucial role the CDFA® can play on the divorce team is helping evaluate whether the financial decisions are sound and appropriate for a client’s circumstances.”
3. Leaving the investment portfolio unchanged
Often, after a divorce is finalized, the investments remain as they are. “I’ve often seen a set it and forget it mentality and that may not be appropriate,” Amy affirms. Investments should be reviewed, analyzed and matched to her financial goals and overall financial circumstances.
4. Failing to update estate and financial documents
“It’s important to note, that someone might change a beneficiary on a 401k or IRA, and that’s great. But it goes further than that,” Amy says. Women need to consider whom they want to make medical and financial decisions on their behalf if they are unable to do so themselves. Do they want to use the same certified public accountant used during their marriage or find a new one? “It’s important to get these relationships established and documents drafted with appropriate legal, tax and financial professionals,” Amy says.
5. Trying to recreate the exact lifestyle you had while married
Goals change after a divorce. Retirement ages may change, children may need to take out student loans for college and houses may need to be downsized. “My goal is always to help protect my client’s financial well-being and plan for longevity,” Amy says. At the same time, and just as important, she adds, is addressing a new life purpose. “I look beyond the numbers, at what is really important to someone, and that’s factored into goals,” she adds. “To plan for the resources needed to support herself and to do the things she’s always aspired to do—those are the broad goals.”
Thriving financially and personally
Many women come to Amy and her team looking for reassurance and security. She helps provide guidance, as both a dedicated divorce financial analyst and an experienced financial advisor.
“In this next chapter, there are new possibilities,” Amy says. “Creating a partnership of trust is key to moving forward financially with greater confidence.”
Begnaud Wealth Management Group of Janney Montgomery Scott LLC
Amy Begnaud, CFP®, CDFA®
Financial Advisor, Senior Vice President
Gary Begnaud, CRPC™, CDFA®
Financial Advisor, Executive Vice President
Amy Begnaud, CFP®, CDFA®
Financial Advisor, Senior Vice President
Gary Begnaud, CRPC™, CDFA®
Financial Advisor, Executive Vice President
Connor Webb, CFP®, CRPC™, CDFA®
Financial Advisor
Mount Laurel (856) 291-5032
BegnaudWealthManagement.com
Janney Montgomery Scott, LLC, Member: NYSE, FINRA, SIPC
For important information about Janney and your best interests, see www.janney.com/crs.
Mount Laurel (856) 291-5032
BegnaudWealthManagement.com
Janney Montgomery Scott, LLC, Member: NYSE, FINRA, SIPC
For important information about Janney and your best interests, see www.janney.com/crs.
