Financial Fresh Start: The Top Priorities Post-Divorce 

Navigating life post-divorce is an emotional upheaval but also a critical time to take complete control of your financial future. Divorce marks a significant financial turning point, requiring immediate steps to secure your future, as Nikki Hartung, the Divisional Director at J.P. Morgan Wealth Management and seasoned JPMC leader overseeing financial advisors in Chase’s Western branches, explains in this Haute Living interview. With over 25 years of experience and a passion for guiding clients through life’s big changes, Hartung shares expert insights on navigating asset division, building a financial plan, and addressing unique challenges—particularly for women—while offering practical advice to avoid common pitfalls and ensure long-term stability post-divorce.

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HAUTE LIVING: What are the immediate financial steps someone should take right after a divorce to secure their financial future?

NIKKI HARTUNG: Divorce can be both emotionally and financially challenging. To help secure your financial future, it’s essential to take strategic steps. First, assemble a team of professionals, including a financial advisor, tax expert and lawyer, to guide you. Understanding your state’s divorce laws is crucial, as they impact asset and liability division.

A financial advisor can offer insights into how divorce affects your financial landscape and suggest protective measures. Asset division varies by state and includes cash, investments, retirement funds, real estate, personal property and debts. Understanding your spending habits, both individually and as a couple, is vital to managing joint financial commitments like education, housing and insurance.

Review your income sources, such as salaries, investments, and rental income, to assess whether they adequately cover your expenses. If there is a shortfall, explore options to adjust spending, reallocate savings, or increase income. Integrate these considerations into a comprehensive financial plan, developed in collaboration with a financial advisor, to effectively address any changes resulting from a divorce.

A well-structured financial plan is crucial at every life stage. If you lack one, use this time to organize your finances and understand your needs and spending patterns. 

HL: How can working with a financial advisor in a Chase branch help someone navigate the complexities of asset division and financial planning after a divorce?

NH: A Private Client Advisor in a Chase branch can be invaluable during divorce. They can provide an unbiased perspective, helping you make informed decisions free from emotional influence. By clarifying the long-term effects of your financial choices, they help ensure your actions today support your future goals and your family’s well-being.

A financial advisor can guide you through asset division complexities and help optimize your financial position. They assist in developing a comprehensive financial strategy addressing both immediate and long-term needs, including budgeting and investment strategies. Leveraging their expertise, you can confidently navigate post-divorce financial challenges.

HL: You’ve seen many clients through life’s big changes; what unique financial challenges do women often face post-divorce, and how can they be addressed proactively?

NH: Post-divorce, women often face unique financial challenges, especially if the divorce occurs later in life. Shorter work histories due to family care can lead to lower retirement savings and Social Security benefits.

 To address these challenges, women should establish a solid financial plan at any life stage. By taking control of their finances, setting clear goals, and exploring career advancement or additional income opportunities, women can better navigate post-divorce financial complexities.

HL: What are some common mistakes people make with their finances immediately following a divorce, and what advice would you give to avoid these pitfalls?

NH: Common post-divorce financial mistakes include rushing the process and not consulting experts like financial advisors and attorneys. Hasty financial concessions can harm long-term financial health.

To avoid these pitfalls, take a patient, strategic approach. Fully understand your financial situation and seek professional guidance to make decisions that support your long-term interests. This careful planning can help safeguard your financial future. 

HL: In your experience, what are the long-term financial planning strategies that should be considered post-divorce to ensure stability and growth, especially for someone who might have been less involved in financial management during marriage?

NH: Long-term financial planning is crucial post-divorce, especially for those less involved in financial management. Consider these strategies:

1. Educate Yourself: Deepen your understanding of your personal and family finances, including budgeting, investing, and retirement planning.
2. Develop a Financial Plan: Outline your goals, such as retirement, a home purchase or paying for education. Regularly review and adjust your plan.
3. Consider a Prenuptial Agreement: If remarrying, a prenup can protect assets and facilitate financial discussions.
4. Engage with Professionals: Work with a financial advisor for tailored strategies in investments and experts in tax and estate planning.

These steps can help build a foundation for financial stability and growth, empowering you to confidently manage your finances.

HL: Anything else you think is important to share?

NH: Additional considerations for long-term financial stability post-divorce include:

1. Emergency Fund: Maintain a fund covering three to six months of expenses.
2. Credit Management: Monitor your credit report and improve your score.
3. Insurance Review: Re-evaluate health, life, and property insurance to align with new circumstances.
4. Retirement Accounts: Update beneficiaries and align how much you’re saving with your goals.
5. Legal and Estate Planning: Update legal documents and consider a trust if needed.
6. Financial Independence: Explore career advancement, additional income streams or further education to increase your income.

These steps can help create a comprehensive approach to managing finances post-divorce, setting the stage for a secure and prosperous future.  

J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment adviser, member FINRA and SIPC. Insurance products are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. Certain custody and other services are provided by JPMorgan Chase Bank, N.A. (JPMCB). JPMS, CIA and JPMCB are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states.

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