A Simple Roadmap for Starting Fresh
Divorce after a long marriage can feel like having the rug pulled out from under you. Your routines change. Your home may change. And your finances—well, they suddenly need a brand‑new plan. Even if you are eligible for spousal support, it is just one piece of a much bigger financial picture.
The good news? You can rebuild. And it starts with a simple, empowering approach.
Step 1: Build a Clear Budget Using “Needs” and “Wants”
Post‑divorce, your financial life becomes easier to manage when you separate the non‑negotiables from the nice‑to‑haves.
Your Needs (the essentials):
- Housing—mortgage/rent, utilities, property tax, insurance, HOA, maintenance and repairs
- Groceries and household basics
- Automobile and transportation expenses
- Health insurance and medical costs
- Basic phone, internet, and cable
- Pet and veterinary expenses
- Basic clothing
- Debt payments
- And of course…taxes
These are the expenses that must be covered every month or quarterly to keep your life running smoothly.
Your Wants (the lifestyle upgrades):
- Travel and vacations
- Dining out and entertainment
- Hobbies and health club
- Personal care—haircuts, spa, and discretionary wardrobe
- Gifts for kids and grandkids
- Charitable giving
- Home upgrades and furnishings
These are flexible. You can dial them up or down depending on what’s going on in your financial world.
This is the foundation for everything else.
Step 2: Match the Right Income Sources to the Right Category
The key to stability after divorce is using dependable, predictable income to cover your Needs, and using variable or investment-based income to fund your Wants.
Good sources for Needs (they’re steady):
- Social Security
- Pension income
- Annuities that offer guaranteed payments
- Consistent rental income
- Full-time, part‑time, or consulting income
Good sources for Wants (they fluctuate):
- Investment withdrawals
- Dividends and interest
- Capital gains
- Occasional work or side gigs
This structure helps ensure your essential bills are always covered—no matter what the market is doing.
Step 3: Two Hypothetical Examples
Sometimes it helps to see how this works in real life.
Case 1: Toni
Needs: $8,000/month
Wants: $7,000/month
Toni uses:
- Social Security
- A small annuity for guaranteed income
- Rental income from turning part of her home into an Accessory Dwelling Unit
- Short‑term part‑time consulting work
- Long-Term Care Insurance policy to cover expenses for at-home senior care
These cover almost all of her Needs.
Her Wants—travel, hobbies, dining out—come from her investment account. When the market is strong, she enjoys the full amount. When the market dips, she simply scales back.
This is a hypothetical story and not indicative of any specific situations or client. It is presented only as an example and not intended as investment advice. Investing involved risk and there is no assurance that any investment strategy will be successful.
Case 2: Dawn
Needs: $10,000/month
Wants: $8,000/month
Dawn uses:
- Divorced‑spouse Social Security benefits
- Pension payments from her and ex-spouse’s former employers
- Survivor benefits that guarantee income won’t stop if her ex‑spouse passes
- Downsizing her home and buying a rental property for steady rental income
- A deferred income annuity kicking in later for longevity protection
- Earmarking investment assets to cover long-term care and medical expenses
Her Needs are fully covered by stable, layered income.
Her Wants are funded from her investments and adjusted based on market conditions.
Both women rebuilt their financial lives—just in ways that fit their goals, assets, and lifestyles.
This is a hypothetical story and not indicative of any specific situations or client. It is presented only as an example and not intended as investment advice. Investing involved risk and there is no assurance that any investment strategy will be successful.
Step 4: Reach Out for Professional Guidance
A long‑term divorce involves emotional decisions, financial restructuring, and complicated topics like Social Security timing, pensions, QDROs, long‑term care planning, and investment allocation.
This is where working with a CFP® and CDFA® can make an enormous difference.
You don’t have to navigate this transition alone.
Connecting with you is the favorite part of my day. Feel free to connect with me or set up a Zoom consultation at www.calendly.com/jennifernapper
I’m here to help.
Jennifer Napper, CFP®, CDFA®
Vice President, Investments
Napper Wealth Planning of Raymond James
Feel free to reach out for questions at:
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