Considering divorce? Tips to ensure you’re financially ready

Zain Johnson speaks to Certified Financial Planner Eric Jordaan.

Divorce can be tough on your emotions as well as your finances. 

Jordaan recommends having a budget agreement for both parties during and after the divorce. 

This will help set clear expectations on matters such as who will maintain what debt during and after the divorce process.

It is important especially if one person has a higher income than the other. 

“It is very important that clear indications are given in terms of who is responsible, especially in terms of debt, and how to continue managing that, because if it falls on the wayside, it has major consequences.” 

- Eric Jordaan, Certified Financial Planner

“Divorce is a costly undertaking. It’s not something that someone should take on without the proper planning.”

- Eric Jordaan, Certified Financial Planner

Split assets also mean reevaluating your long- and short-term insurance. 

The second party will need to consider additional costs such as taking out their own long- and short-term cover.

Consulting a financial advisor is highly recommended.

“It’s important to sit down and understand the practicalities of how this will all work post-divorce, how the funding will work, and how much you will need to survive into the future. Things like your retirement planning will look very different now.”

- Eric Jordaan, Certified Financial Planner

Scroll up to the audio player to listen to the discussion.