Rebuilding Your Financial Portfolio Post-Divorce

 Posted on July 30, 2024 in Divorce

 Divorce is a major life event that brings emotional upheaval and often a dramatic financial shift. One of the critical tasks you will face after your Illinois divorce is rebuilding your financial portfolio. But what exactly is a financial portfolio, and how do you restore it? Contact a divorce attorney to walk you through the basics and provide you with straightforward tips to help you regain financial stability.

What is a Financial Portfolio?

A financial portfolio is a collection of various financial assets that you own. These assets can include stocks, bonds, real estate, savings accounts, and other investments. Think of your financial portfolio as a pie chart that shows the different places where your money is invested. A diverse portfolio spreads your risk and can help grow your wealth over time.

Examine Your New Financial Situation

Understanding your new financial situation is the first step in rebuilding your financial portfolio. Post-divorce, your income, expenses, assets, and liabilities may have changed. 

Make a detailed list of your current financial standing. Include:

• Income – Your salary, alimony, child support, and any other sources of income.

• Expenses – Monthly bills, loan repayments, childcare costs, etc.

• Assets – Bank accounts, retirement accounts, property, and other investments.

• Liabilities – Debts or any financial obligations.

Set New Financial Goals

Once you have a clear picture of your finances, it is time to set new financial goals. These goals can guide you in making decisions about your financial portfolio. Consider short-term goals and long-term goals. Having clear objectives will help you stay focused and motivated.

Budget and Save

Creating and sticking to a budget is crucial for rebuilding your financial health. Track your spending to see where you can cut costs and save more. Aim to save a portion of your income each month, even if it is a small amount. Over time, these savings will accumulate and can be directed towards investments that will grow your portfolio.

Diversify Your Investments

A well-rounded financial portfolio includes a mix of different types of investments. You may consider:

• Stocks – Shares of companies that can offer high returns but come with high risk.

• Bonds – Generally less risky and provide steady income.

• Real estate – Can provide rental income and appreciate over time.

Stay Informed and Adjust When Necessary

Financial markets and personal circumstances can change. Review your financial portfolio regularly and adjust as needed. Staying informed about market trends and performing an annual financial review can help you stay on track and make timely adjustments.

Contact a Wheaton, IL Divorce Attorney

While rebuilding your financial portfolio may seem daunting, the process becomes more manageable when the right assistance is obtained. For help through this process, contact the DuPage County, IL divorce lawyers with The Stogsdill Law Firm, P.C.. Call 630-462-9500 to schedule a private consultation today.