Four keys to financial resilience when your life changes

Life transitions, such as the loss of a spouse, divorce or the sale of a home or business, often bring significant financial and estate planning implications. The following recommendations are for individuals and families preparing for or facing these transitions.

1. Build a strong support system

The first step to take when facing a major life transition involves assembling a team of experts who will best serve your specific needs. The team may differ depending on the situation, but it almost always includes an estate planning specialist, a tax professional and an investment advisor. It may also include lawyers or experts specializing in divorce, the sale of a business or other situations.

Although you may feel that you’re equipped to handle these issues without professional guidance, the lack of such guidance can lead to costly mistakes. Having your own lawyer or financial advisor is the best way to ensure that your interests are protected

Major life transitions can be extremely challenging. These strategies can help you to be more prepared and minimize the stress involved.

2. Dial back your stress with advanced preparation

The stress that comes with significant transitions can make tasks like managing financial obligations seem almost impossible This is especially true when someone loses a spouse or parent.

Too many people react in response to major life changes rather than preparing ahead of time with their loved ones to establish a good understanding of their family’s financial picture Sharing information about your financial circumstances with your family in advance can help alleviate pain points during already stressful and emotional times. There are always exceptions, but the more information your spouse or children have, the better equipped they’ll be.

Regardless of the transition you may face, it’s important to gain control over your financial picture as soon as possible. This means cataloguing your finances: do an inventory of your assets and know how much you have and spend And, although it may be tempting, try to avoid making significant financial decisions in the middle of a transition. Most experts suggest waiting about a year before making any such decisions. Thus, don’t sell your home, move to a new city or change jobs. You need time to live in and assess your new reality before you can make decisions clearly.

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