If you’re an ultra-high net worth individual who’s dealing with the loss of a spouse either through a divorce or death, you likely have your hands full emotionally and financially. We’ve helped many of our clients through this process and have sound financial advice for divorcees and widows who are experiencing these challenging transitions.
Assess Your Situation
At this point, you may not be aware of all the financial implications of your divorce or widowhood. After all, you’re going through what is likely one of the most emotional and devastating times of your life.
The first thing you need to do is come to a period of stability to ensure the most favorable outcome concerning your financial status. The earlier you act, the better for you. You need highly specialized advice, given your affluent status. There’s a lot at stake. This is especially true after a divorce when a wealth manager can help during the negotiation process.
An expert can help alleviate some of the stress associated with the uncertainty you’re facing. Once you’ve discussed your situation with a wealth advisor, your individual needs and goals can better be addressed.
A Common Challenge
A common issue we see in our firm is that one spouse is often more financially aware than the other. For instance, we’ve met with widows who weren’t as involved with the financial affairs or investment portfolios that their husbands were in charge of. It’s not unusual for the surviving spouse to have little knowledge of the complete financial picture. In fact, according to Forbes, 69% of widows say that their top financial challenge was making decisions on their own, without their deceased spouse.
Divorcees have the challenge of being fully aware of all the financial assets in the marriage. This is a particular problem if you’re the lower-earning spouse in the marriage. Once again, a wealth manager can help guide you through either process and can be instrumental in helping you to understand what’s at stake. It doesn’t matter how extensive the situation, it’s crucial to have a full assessment of the marital assets and financial portfolio to determine what your next move should be. While a divorce attorney can help you understand the legal implications, a wealth manager can help secure your wealth status for years to come.
Tips for Divorcees and Widows of Ultra-high Net Worth
Careful management of your assets and financial portfolio is wise to ensure your wealth for years to come. Here are a few tips to get you started:
- Don’t neglect self-care. Take care of yourself emotionally and physically following this important transition in your life. Once you’ve seen a wealth advisor, they’ll need time to create a plan that’s in your best financial interest. In the meantime, you need to regroup and get yourself in optimal health to help you make better decisions later on.
- Don’t make hasty decisions. While it’s important to assess your situation quickly with the help of an expert, don’t make major decisions right away. For instance, don’t sell major assets or make major purchases. A full assessment of your portfolio should come before any major financial decisions. A specialist might determine that you should invest more to increase the chances of securing your ultra-high net worth. On the other hand, they may decide that risk management is a wiser route to take.
- Do create a budget. Many wealthy individuals are surprised to learn that we recommend this. But, the truth is that especially when millions of dollars are at stake, it’s more important than ever to budget. The goal is to identify your expenses and create a plan that will help you make wiser financial decisions.
- Do meet regularly with your wealth management advisor. Even after you’ve determined along with your wealth manager what your best course of action is, it pays to stay up-to-date, particularly where your investments are concerned. Key factors could change and you may need an update now and then on your investment planning.
Ultra-high net worth individuals have many complex layers that can contribute to their financial well-being.
Badii Group has helped many wealthy individuals who’ve experienced divorce as well as widows who’ve suffered the loss of a spouse. We understand the complex nature of these types of life-altering events and can show you the varying alternatives that can lead to different outcomes for you.
Contact us as early as possible so that we may help determine the best outcome for you.