As a financial adviser, I’ve seen countless women experience significant life transitions. Planning for contingencies makes such experiences easier to navigate.

Take Mary, for example. After 30 years of marriage, she went through a contentious divorce in which her husband, who had managed the household finances, assured her she would “be taken care of.”

But Mary had little insight into their wealth and just wanted financial security.

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Because we had planned ahead and carefully assessed her options, I worked with her attorney to help ensure she received half the private investments (which her husband had suggested she give up), and I guided her through purchasing a new home.

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Although she was financially secure, Mary carried a frugal mindset from her marriage, so I served as both adviser and sounding board as she learned to manage her finances independently.

What began as a tumultuous process has since become a liberating experience for her.

Here are some common life transitions that you might experience, ideas to consider and ways to prepare.

Financial independence

Most of the women I work with sought to get to a point where working for pay is a choice. If you’re lucky enough to find yourself in this place, you have a variety of options, which could include:

• Working part time
• Pursuing a second career
• Volunteering
• Becoming a board member

If you plan to eventually stop working full time, consider what your hard stop is (if any). Ask yourself if you want to transition to part time, only work with certain clients or work on certain projects. Do you want to release some organizational or management duties?

It’s also important to understand how you want to spend your time:

• Would you enjoy volunteering?
• Could you turn your passion or hobby into a business?
• Do you want to spend more time with loved ones?
• Would you prefer to do nothing? (As lovely as that sounds, it might quickly get old.)

You don’t need to have every detail planned out. This is a great time to try different activities or test different daily schedules to see what feels right. Many women enjoy not having a plan for the first six months to decompress and see where the day takes them.

Next, focus on the level of spending you want to sustain, not how much of your income you need to replace.** **Many people look at their net income and think they need to replace that figure. That’s usually is not the case, as your expenses might drop.

However, depending on your age, employment retirement benefits, access to partner/spouse employer group health insurance, health insurance premiums and out-of-pocket costs, your expenses can rise and fall.

While commuting costs and professional wardrobe expenses often decrease, travel and hobby expenses typically increase.

Finally, it’s important to think about how you’ll** re-create your “paycheck.” **

Many people default to spending down cash and other taxable accounts to minimize taxes “today.” If you have diversified the tax treatment for your investment accounts, you might have the three-legged tax stool, which allows you more flexibility and control of the amount of and when you pay taxes.

Many people have pretax accounts, such as a traditional 401(k) or 403(b), but there are also tax-free (Roth 401(k)/Roth IRA) and after-tax savings, which are taxed at preferential capital gains rates.

Working with your financial and tax advisers can help your portfolio last longer while minimizing your tax burden.

I recommend maxing out your savings to retirement plans as early as possible to give your account a long time to grow.

Advocate for yourself often and review if you’re being compensated equitably; if you aren’t, negotiate to secure a salary that will allow you to both save and enjoy life.

I also recommend keeping at least six months of fixed expenses in an emergency account.

Having a goal you’re moving toward instead of focusing on what you’re leaving behind sets you up for a successful next chapter.

You don’t need to have every detail planned out. This is a great time to try different activities or test different daily schedules to see what feels right.

Many women enjoy not having a plan for the first six months to decompress and see where the day takes them.

Caring for family members

As we age, our loved ones age alongside us. Whether that is a spouse, parent, grandparent or child, the care of these family members tends to be provided by women. Almost one-fourth of women 55 and older provide some form of unpaid caregiving on any given day.

The average time spent by women caring for children, household members and non-household members is 51.6 minutes a day.

Being out for this length of time reduces the amount you’re able to contribute to Social Security, 401(k) and a pension (if applicable). This might also impact your salary and career growth.

Thinking ahead, making a plan and speaking with your loved ones about aging can reduce the stress and toll that this role could take.

Consider how you can share the responsibility with family and friends. Having open and honest conversations is necessary to maintain relationships and help ensure everyone is on the same page.

Look into hiring a specialist who focuses on working with and advocating for elders and their families. When planning the care of a parent, investigate what benefits they’re eligible for, such as veteran benefits or Medicaid.

Consider professional care if that’s a service that you or your parents can afford.

Most people don’t put much forethought into the possibility of becoming a caregiver. Anticipating this situation involves multiple emotional and difficult conversations.

If you can have these conversations before the situation arises, and you approach them from a point of keeping your loved one in control, this can lead to a productive conversation from a safety and well-being perspective.

Key topics can include:

• The current financial situation
• The preferred location of care
• The expectations and financial ability of each family member
• Whether long-term care insurance is an option

Divorce or death of spouse/partner

The last thing on anyone’s mind when they get married is, “What will I do if my spouse predeceases me?” or “What if we get divorced?”

Though these are both grim topics, in 2024, 10.8% of women in the U.S. were divorced, and 8.1% were widowed, reflecting the reality that many women will face one of these life transitions.

As both events are highly emotional, I recommend doing precautionary legwork now.

First, educate yourself on your finances. If your spouse handles the finances and major financial decisions, make sure you have at a minimum a basic understanding of the accounts you both hold, how they are titled, where they are located and how to access them.

You should know your typical monthly expenses; amount of current cash; amount of outstanding debt and who the creditors are; who to contact if your spouse has employer benefits such as company stock and/or option plans, deferred compensation or long-term incentive plans (LTIP); and what life insurance coverage there is on both of you.

I strongly recommend having regular meetings (at a minimum on an annual basis) to discuss the state of your current finances. This will ensure you are better prepared for the day you may need to take control.

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Next, consider hiring a team of professionals or identifying those with whom you’d like to work.** **Your team could include a financial adviser, an accountant and an estate planning attorney who work together on your behalf.

If you’re not already working with professionals and are experiencing a life transition, consider hiring those who specialize in working with women who have become widows or divorcees.

One of the most important pieces of advice for those who experience a partner’s death or a divorce is to take time to grieve and not make rash decisions.

Thinking about this ahead of time will give you more space for grieving, as you’ll already have a plan in place. Here is a checklist that my team has created to get you started.

Final thoughts

Life transitions, whether planned or unexpected, can feel overwhelming, but preparation makes them far more manageable.

By starting conversations early, clarifying priorities and putting the right financial structures in place, women can move through these moments with greater confidence.

While no plan can eliminate uncertainty, taking proactive steps today can help ensure you’re equipped to navigate whatever comes tomorrow.

Hightower Advisors, LLC is an SEC registered investment adviser. Registration as an investment advisor does not imply a certain level of skill or training. Securities are offered through Hightower Securities, LLC, Member FINRA/SIPC. The opinions expressed are solely those of the author and do not represent those of Hightower Advisors, LLC, or any of its affiliates.

Related Content

• Why Retirees Need a Budget, According to a New Retiree
• Caregiving Is a Stealth Retirement Expense for Women: I Should Know
• How to Navigate Your Finances After Losing Your Spouse: Thoughts From a Financial Planner
• You’re Divorced, But the Work Isn’t Over: A Guide to Five Financial Tasks to Do ASAP

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.