The process of getting divorced in California – while simultaneously taking care of young children – can challenge your financial savvy to its very limits.
You face the prospect of your assets being halved (and then some) by the divorce. You also need to figure out how to pay for child care, food and other necessities for your young one (or young ones!) during the process.
Rather than hit you with a bunch of tips and strategies, let’s talk about one general concept – the idea that you need to develop financial management knowledge.
Many smart California professionals do not understand how to create and maintain a family budget. They don’t have plans in place to invest, save for the future, protect themselves against the dangers of disability, etc. Educate yourself. Learn these skills, and find people and companies that can help you plan better and make more effective use of your money.
For instance, author Nassim Nicholas Taleb (“Fooled by Randomness” and “The Black Swan”) advises what he calls the “barbell strategy” of money management. Put most of your assets into very safe accounts, like Treasury bills. Avoid putting too much in the middle of your “barbell” – i.e. middle yield, middle risk investments. Save some of your money for high risk, high yield investments — the other end of the “barbell.”
Obviously, you need to find a strategy that works and seek experienced money managers and accountants. But do invest the time and energy into working with such professionals, so that you can have an understanding of what you need to do to protect your family and work your way through the divorce. Also, if you have not yet retained a California divorce lawyer, call Dinnebier & Demmerle immediately to schedule a consultation with us.