Undoubtedly going through a divorce is one of the most traumatic and life-changing events, especially if it is an acrimonious separation.
We cannot help you with matters of the heart, only to provide moral support. But we definitely can help you through with your finances.
Sharing some financial lessons here after helping a few clients through their divorce.
Now that you have gone your separate ways, you may find that your spending has increased as you take over some expenses.
You might have to temporarily scale back on some discretionary spending while you sort out your cashflow.
Depending whether you are the one giving or receiving alimony, manage your expenses accordingly. If you are the one receiving alimony, plan your finances on the assumption that you do not receive the alimony.
You may have to increase your coverage, as you are no longer covered by your ex-spouse company insurance, or have to shoulder a larger financial burden.
Also ensure that you do not overlook the payments for your insurance policies, as your ex-spouse may have been the one paying for these policies previously.
Divorce is an expensive business, so you would have used up a fair bit of savings for this. Take time to buffer up your emergency cash.
In Singapore, divorce fees generally range from $1,500 to $3,500 for simplified uncontested divorces (where both spouses can agree on all terms of the divorce), and $10,000 to $35,000 for contested divorces (where both spouses are contesting at least one term of the divorce).
Extracted from: Singapore Legal Advice
A divorce does not revoke a Will or nomination, so if your ex-spouse is a beneficiary, you may wish to update your Will, as well as CPF and insurance nominations.
Upon divorce, your ex-spouse appointment as donee will be cancelled and your LPA will no longer be valid if your ex-spouse is the only donee.
If you have stipulated a replacement donee, he/she can take over the role as your donee.
If you need to apply or amend your LPA, you can do so online from 14/11/2022.
Read more here: Lasting Power of Attorney applications to be made online from Nov 14
As you move onto the next chapter of your life, my advice would be to rely on your own income & manage your expenses accordingly.
If you know someone going through a divorce, please share this article, or connect us at winniechan@fapl.sg, so that I can help them with their finances during this challenging times.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
Winnie Chan is a distinguished Certified Financial Planner (CFP) with over a decade of expertise in financial advisory services. Her commitment to her clients has led many to achieve their financial aspirations while ensuring their families’ protection. Winnie‘s extensive experience in insurance claims has been instrumental in securing successful payouts, providing crucial financial relief during challenging times.
Her passion for community engagement is evident through her financial education initiatives. She has conducted insightful financial talks for esteemed organizations such as Carousell Group, Singapore National Eye Centre and Singtel, empowering their employees with valuable financial knowledge.
Outside of her professional commitments, Winnie balances her life with a passion for fitness and music. She enjoys rigorous workouts at the gym and is a pianist, recently awarded ABRSM Piano Performance Grade 6 (Merit).
