One of the often overlooked items when it comes to financial planning after divorce, is the amendment or implementation of an appropriate risk solution. Once done properly this simple act can eliminate severe life changing events in future and reduces your financial vulnerability.
Risk management can be placed in two categories.
Averting risk through action.
Action is key to avoiding financial risks, by failing to take action and implement action plans, the same old risks along with some new ones will surely occur.
Key areas to look at is the updating of your financial documentation – These include wills, beneficiary nominations on pensions as well as risk insurance policies. It is therefore recommended to take the time to ensure that these steps are taken.
Amendment and implementation of risk solutions.
Here you are protecting your financial future and that of your loved ones, through the use of insurance based products. These will include solutions for yourself as well as your ex-spouse that are implemented to avoid disasters such as the non-payment of maintenance due to life events.
Key areas of concern are: Life, disability and illness events.
Once you have acted and addressed your situational risks, as well as implemented risk protection you will be in a much more financially secure position.