Baby boomers, particularly women, may end up paying a high price in old age for their soaring divorce rates. Not only does divorce negatively affect the finances of this generation, but there is also the fact that more of this generations' parents are getting divorced. That means they will have less wealth to leave as inheritance to the boomers.

Statistics Canada reports that both men and women have fewer financial resources than their married counterparts, but women suffer significantly more in the long-term. Widowhood is currently the main reason that elderly women are without a spouse, and also why they represent the highest poverty rate among Canadians. That trend is changing, with divorce looking to overtake widowhood as the main reason for being unattached in old age.

The divorce rate among baby boomers is sharply higher than among earlier generations and the rate of separation among common-law partners is even higher. A large percentage of divorcing couples report that finances and having different financial priorities and spending "styles" are the main areas of conflict during marriage. Ironically, few who have experienced divorce will ever get around to discussing their financial expectations before getting married for a second or third time. Sadly, subsequent marriages have the highest rates of divorce of all.

But divorce is a process, and one that eventually does come to an end. Once your divorce is over, it's time to take control of the situation, and making adjustments for your new financial reality. Perhaps you have to learn to be a single parent, while still working with your ex-spouse on decisions concerning the children. You may begin dating again, even though you may still feel emotional. One of the most important aspects of your post-divorce life will be feeling financially stable again, and more secure about your ability to plan for the future.

Planning for the future starts with goal-setting – that is, deciding what it is that you want your life to look like, and prioritizing what is most important to you and your family. Think about what it means to you to be financially secure, and what kind of lifestyle you envision yourself enjoying before and during your retirement years? With longer life expectancies, people can plan on living another 30 years after age 65. How will you spend your retirement, and what will that cost? Realistically, at what age do you think that you'll be able to, or want to retire? How long did your parents and grandparents live, and what is the current state of your own health when considering your life expectancy? Who is depending on your for financial support and what would happen to the if you die prematurely?

You are the only one who can answer these questions. Even if you've had experience managing money and investing, you may want to find an investment advisor to help you map out and implement the proper strategies to address your financial goals. If money and investing are foreign territory to you, it's essential that you work with an investment advisor who has a well-rounded approach to financial planning and someone who you feel comfortable with.

Choose a professional who has strong communication skills, who listens more than she talks, who asks you a wide range of questions in order to understand your feelings as well as facts, and who shows patience when you are not ready to make a decision. Find an advisor who can explain financial terms and strategies in "plain English" and who is patient and respectful when answering your questions.

Your most urgent and immediate financial needs may be making sure that you have ample cash flow to pay the bills and that you have a handle on your debt management post-divorce. Your advisor can help you to establish a budget and track your income and expenses. A budget will also provide the structure that you need to incorporate saving money for your future financial needs. Or, you may be in a position where you need to create a tax-efficient income stream using your divorce settlement.

Whatever your post-divorce needs, choose an investment advisor who will prepare an updated written financial plan and projection for you that illustrates how long your money is going to last you, living the lifestyle that you envision.

This personalized financial plan will determine your proper investment allocation and strategy for growth, tax minimization, retirement income planning, and insurance and estate planning recommendations, in order to address your various personal financial goals. Regular monitoring and updating of your plan is just as important as the initial plan itself. You should meet with your investment advisor on a regular basis to update both changes in your own life and financial priorities, as well as to make any adjustments to the investment balance to ensure that your goals are properly reflected. These meetings are also a terrific way for you to build on your own financial education, asking questions and understanding why some financial choices are better suited for you than others.

Divorced women need to prepare for the rest of their lives, and a strong financial foundation will give you the confidence in knowing that you're making smart decisions along the way. You owe it to yourself to slowly and gradually build-up your comfort and experience, if this area of responsibility is new to you. Especially if your husband had been the caretaker of your money, you might want to learn enough to be able to ask the right questions, and understand what your advisor is telling you. Education over a period of years through newsletters, personal discussions, question and answer sessions, books and articles, and more formal education seminars can also be very helpful.

Preparing a plan for your life's priorities as well as for your finances is the first step in taking charge and creating the life that you want for the future. Creating a plan and moving forward one small step at a time will keep you from feeling overwhelmed, and will help you progress to financial independence at your own pace.

If you or someone you know is dealing with a divorce, and has questions about their financial situation & how to prioritize the decisions that lie ahead, please contact me as a resource to help you.

Contact Julie