Smart Thinking

Step 1 - Divorcesmart

When you receive your “sjoe-sjoe” letter it is very normal to panic, be very emotional, cry buckets full of tears and it really feels like it is the end of your world and it most certainly is. But what you won’t see is that is the beginning of your new life.

The aim in divorce is to get your 50% of the combined estate after debt has been deducted (Dependant on your marriage contract). The number one mistake you can make is signing a settlement agreement just to get it over and done with and voila you made an emotional decision.

Divorce should as planned and structured as possible, use the building block when making a decision. When you are emotional go back to the question and place it for example in the financial block and make sure you make a financial decision.

If you look at the financial quadrant in the Divorcesmart  process, you should divide that quadrant into 4 financial building blocks. These are financial decision you make during the Divorcesmart process. Once your settlement and divorce is finalised you now need to rebuild your financial future.

Step 2 - Finsmart Financial Plan

These are some of the most frequently asked questions:

  • How much child maintenance am I entitled to?
  • How will I retire after divorce?
  • What happens to maintenance if my ex dies?
  • Should I keep my current insurance and is it sufficient?
  • Do I need to get my own medical aid?
  • What should we do with our children’s education fund and their savings accounts?
  • How do we split the estate without destroying wealth?
  • Will I be financially secure after my divorce?

I will point out some pitfalls to avoid and try to ensure that you don’t make costly mistakes. The purpose of this advice is to rebuild your life as quickly as possible.

 

Once you have ticked all the boxes from the Divorcesmart process you can now go on and rebuild your financial life. Let’s call this your Finsmart plan. What I found was that if you could divorce with zero debt or as little debt as possible, get your fair share of the estate then you can rebuild your financial life and new life much easier and quicker. Financial advice before and after the Divorcesmart process is crucial! It takes 100% to make your 50% share 100% again. This excludes time! If you get back to 100% then you are still a bit behind because you should have been a lot further had you not have to give away half. 

When you get the financials right you get the world on your own plate. With a bit of money you can now focus on your new life and make Finsmart decisions which could include travel or studying. What is really important here is understanding decisions and the choices that you make. Going forward you eliminate emotional decisions that always ends up in the negative compared to Finsmart decisions purely because you have learned what decisions to make in the correct quadrant.