If your financial situation changes in your divorce, for better or worse, you’ll likely have to update your portfolio allocation. A good portfolio allocation is based on your investment objectives, risk tolerance and time horizon.
Your investment objectives might change dramatically based on the circumstances of your divorce. If your ex-spouse was the breadwinner of the house, for example, you might have the need for more income. If you end up with more assets after your divorce, you might be able to handle more risk in your accounts.
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