Transitions, such as divorce and retirement, are stressful. Add money, or the lack thereof, to the equation and you compound the trouble.

SHAKY RELATIONSHIP + VOLATILE MARKET = MARITAL DISCORD, POTENTIAL FOR DIVORCE

Since money is one of the top causes of friction in a marriage, it's important to have a conversation about it: early and often. Tough financial times such as the current market meltdown could:

- End an already shaky marriage

- Add an additional layer of stress to a divorce in progress

If a frank conversation about finances with a proactive plan of action doesn't help an already fragile union, perhaps divorce is inevitable. If this is the case, then now is the time to have a financial plan in place; here's how:

Get a clear understanding of what your financial household looks like

- Order a credit report and become familiar with it

- Gather financial statements and review them carefully

$1 of home equity does not equal $1 of retirement assets

- Become educated about how divorce impacts your finances long term

Prepare a reasonable, forward-looking budget that addresses:

- Cost of Health insurance coverage

- Cost of Housing - if thinking about keeping the residence, consult a qualified mortgage planner to see if you can qualify

Preserve your marital wealth

- Understand how investments and retirement accounts work

- Don't wait for your money to dwindle down until your divorce is final

- Talk to your spouse about diversifying to reduce the overall risk

RETIREMENT ON THE HORIZON - PROTECT YOUR PORTFOLIO

You have worked too hard and planned too carefully to let it go "down the drain" in these uncertain financial times. Don't let uncertainty overwhelm you: when the going gets tough, the tough need to take action and make informed decisions. The secret is to know what to do - and what not to do - at this time:

Understand your personal condition

- Current Income, Savings and Expenses

Determine your current situation

- Need to make any changes to achieve your goals and objectives?

- Examine Goals and Objectives going forward, especially in light of what's happening. Ask yourself: what these goals are, if they are still realistic and what changes need to be made.

Determine your retirement time horizon

- How many years until retirement?

- How many years do you expect to be in retirement?

Determine income needs in retirement

- Take into account factors such as risk tolerance

Diversify Your Retirement Assets

- Have exposure to various investments, such as: Equities (US and Foreign), Bonds (Government and Corporate), Cash, Commodities (gold, silver, pork bellies, etc.) and Real Estate

- Don't try to time the market

Create Your Personal Measure of Success

- Create your own personal goals.

- Don't compare yourself to the "Jones-next-door"

- Create a plan to achieve those goals.

- Stick to your plan.

- Re-evaluate your plan annually, unless you encounter significant change.

TRANSITIONS AND MARKET VOLATILITY CAN BE WEATHERED IF YOU HAVE A PLAN

Change is hard, and market volatility compounds it. But, with a sensible plan of action, you can weather the storm. If you are not sure how to chart your course, don't go it alone. Seek the advice of a trusted financial professional to help you now and in the future.

About the Author: Denisa Tova, CFP®, CDFA™, ChFC, CLU provides divorce financial expertise to divorcing individuals. She is a Certified Financial Planner™ practitioner, Certified Divorce Financial Analyst, and a managing partner of Divorce Resource Centre of Colorado, LLC. www.drcofcolorado.com.

Note: This was posted by Rosanne Gain, the publicist for the Divorce Resource Centre of Colorado (DRCC).Denisa Tova, one of the DRCC partners, wrote this article.