Key Takeaways
- Reassess your finances to determine income needs for a stable post-divorce lifestyle.
- Consider health insurance options, especially if your spouse provided coverage before.
- Evaluate retirement savings and seek jobs that match contributions to retirement plans.
- Create a checklist of job benefits, including personal and vacation days, to guide your job search.
- Focus on your sense of self; seek roles that provide value and opportunity for growth.
Estimated reading time: 4 minutes
Changing work arrangements, increasing household costs, and evolving personal priorities may prompt couples to reassess their marriages.
If you’re facing a divorce, assess your income and expenses to determine if you can afford your post-divorce lifestyle.
You may need to re-enter the workforce if your expenses exceed your income.
Or you may need to find a higher-paying job to support your lifestyle.
To evaluate job opportunities, create a checklist of your requirements.
Identify items that are “nice to have” and items that are non-negotiable.
This checklist will help you evaluate whether the job opportunity fits your anticipated post-divorce life.
Here are five items to include on your checklist.
1- Income Needs
Do you know how much money you need to support your post-divorce lifestyle?
Before you begin your job search, calculate how much income you need.
Review your expenses and identify which ones are essential.
If you need to cut spending, adjust your non-essential expenses.
Exclude expenses covered by child support.
Keep in mind, it’s rare to receive alimony for life.
Your income needs will help you determine whether you can work part-time or need to work full-time.
2- Insurance Coverage
Will you need access to health insurance (medical, dental, and vision) post-divorce?
If your spouse carried your health insurance coverage, you may have continuation of coverage via the Consolidated Omnibus Budget Reconciliation Act (COBRA).
It depends on the size of your spouse’s employer.
This coverage is limited to 18 months unless the employer’s plan offers more time.
Unfortunately, COBRA is expensive because it’s the full cost of the group plan plus an administrative fee.
You’ll become eligible for Medicare at 65 years old.
Before that age, you’ll need access to insurance, especially if you have a pre-existing medical condition.
3- Retirement Savings
Do you have sufficient money for retirement?
Before signing your divorce decree, assess how much you will have in retirement savings.
If you need more money for retirement, look for job opportunities with companies that offer to match your contribution to the employer-sponsored retirement savings plans.
Another option is to look for companies that offer a pension.
But this option is limited because many companies no longer offer pensions to new hires.
However, many government positions may still have this benefit.
4- Other Benefits
If you want other benefits, add them to your list.
Examples of other benefits include the number of personal days and vacation days.
It may also include a hybrid work environment or the option to take a sabbatical down the road.
5- Sense of Self
Some benefits will satisfy your sense of self.
These include industry expertise, training, promotions, responsibilities, and other items that will help you feel valued.
Include these items on your checklist if they matter to you.
Once you’ve created your checklist, you’ll have a clearer idea of which job opportunities meet your needs.
It’ll also make it easier to describe to your connections the type of job opportunity you’re seeking.
Stay PEF (positive, enthusiastic, and focused) – your new post-divorce life is around the corner!
(Update to original post from April 22, 2020)
ABOUT THE AUTHOR:
Niv Persaud, CFP®, is the Founder of Transition Planning & Guidance, LLC (TransitionPG®). She believes life is more than accumulating money – it’s about living the lifestyle you envision and can afford. Niv incorporates all aspects of life when discussing money. She developed the 5 P’s of Life (Personal Relationships, Personal Finance, Profession, Peace of Mind, and Physical Health) to help clients define what they want from life. Once she understands their vision, she helps them achieve their lifestyle or adjust their expectations based on their finances. Niv actively gives back to the community through her volunteer efforts. She believes in living life to the fullest by cherishing friendships, exploring the world, and laughing often—even at herself. Her favorite quote is by Erma Bombeck, “When I stand before God at the end of my life, I would hope that I would not have a single bit of talent left and could say ‘I used everything you gave me.’” Click HERE to read where she’s been quoted in the media.
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