What is Divorce Financial Planning?
Regardless of where you are in the divorce process, the reasons for the divorce, or your ability to continue to jointly make decisions; the outcomes of the divorce process will have a big impact on your future well-being. The addition of a trained financial professional to your divorce team can help you have a better understanding of your financial situation and will give you a sense of control over your life before, during, and after your divorce.
As a Certified Divorce Financial Analyst (CDFA) I can add financial objectivity and clarity to an otherwise challenging and highly emotional process. The opportunity to add value is not dependent upon the divorce option you choose -traditional litigation, -mediation, -collaborative, or even if you plan to -do it yourselves.
Critical financial issues to address during divorce:
- Realistically assess your financial situation
- Understand the value of your assets
- Realize you may not be able to afford the family home
- Recognize your standard of living may decline
- Understand the importance of retirement assets
- Look at several divorce settlement options
- An adversarial approach to divorce can be emotionally and financially expensive for both the short and long run
Potential areas of focus:
- Gaining an understanding of your finances and financial needs
- Working together with your spouse on the financial aspects of your divorce using a financial mediation or collaborative process.
- Listing and valuing assets and liabilities such as: your home, investments, retirement accounts and pensions, employee incentive programs, real estate, and businesses etc.
- Evaluation of community vs. separate property
- Income, expenses, budgets, and lifestyle analysis
- Uncovering your interests for the division of property
- Protecting your financial settlement from unplanned consequences
- Tax and capital gains consequences of property division
- Better preparation to meet life events – both challenges and opportunities
Working together, we will start by discussing your goals, values and what is most important to you. Then I’ll help you prioritize those goals and develop a plan that aligns your vision of the future with your financial situation.
