Stick to Your Wealth Preservation Goals
Stacey Tisdale, author of The True Cost of Happiness: The Real Story Behind Managing Your Money (John Wiley & Sons; $24.95), says, “In challenging times, the first thing you want to do is throw your goals out the window. Depending on your financial settlement, create a realistic financial plan and continue to build wealth.â€
“I’m just starting a $2.5 million universal policy,†says Mouton, who sees insurance as a major staple in her plan. “My rainy day fund is pretty huge because I need to save six months to a year, so I need pretty close to $200,000 saved,†says Mouton, referring to her emergency fund.
Establish a Trustee over Your Child’s Inheritance
Mouton is a firm believer in real estate and looks forward to leaving wealth to her children. In order to ensure that the wealth doesn’t cycle back to her ex-husband, she needs to put certain protections in place.
“There’s nothing you can do about the legal custody of your children if it’s granted to their father, but you can do something about your money,†explains Douglass. To protect against this, divorced women should leave their wealth in trust to their children and select a trustee to administer the wealth.