It can be financially devastating for one, or both, parties. You can minimize the negative financial impacts of a divorce by working with a financial advisor with expertise in divorce financial planning.
What is Divorce Financial Planning?
Divorce Financial Planning is a critical component of ensuring you are financially protected during and following a divorce. If you are divorced or divorcing, your financial plan has likely shifted; thus, there is no better time to revisit your short, medium, and long-term financial goals.
Throughout the divorce process, it will be essential that you are aware of all your assets before deciding how to divide them. Compile of list of all your accounts and assets, including:
- Current Income sources in the form of bank statements, paystubs, and income tax returns
- Retirement accounts (such as 401(k)s, Roth IRAs, Traditional IRAs, and pensions)
- Loans and debts
- Property deeds
- Other (such as bank accounts and credit cards)
Your monthly budget when married may change after your divorce is finalized. While your income and retirement contributions may stay the same, your spending habits and additional contributions to spousal or child support may now be applicable.
Take time to reevaluate your budget and decide where daily, monthly, and annual spending can be changed. This is an essential time to loop in your financial planner so they can help point you in the direction that best aligns with your holistic financial plan.
Whether it’s downsizing from a large home to a condo or apartment, transferring payments of utilities and other bills, taking on more of the tuition payments for your child, or other discretionary purchases- readjusting to your new situation will be part of the process.
Zoe’s Network of Financial Advisors experienced in planning for divorced and divorcing couples and individuals can help ease your financial transition by providing experienced insights while facilitating cooperation, communication, and mediation.
Experts You Need On Your Side During a Divorce
Carefully selecting the team that is going to assist throughout your divorce process is crucial. In any separation or divorce process, the five experts to have on your side are:
- Certified Public Accountant (CPA)
- Mental Health professional
- Divorce Financial Advisor
These professionals will be working together closely to develop the very best solutions for you, so be sure to calmly and carefully evaluate their experience, credibility, and style.
See The Top Local Divorce Planners Near You
Divorce Financial Advisors
Divorce asset distribution, divorce tax laws, and divorce financial planning are all challenging financial issues you are likely to face while divorcing. A financial advisor, particularly a Certified Divorce Financial Analyst (CDFA), can guide you through the confusing and often overwhelming aspects of a divorce.
If you’ve had a more passive role in your family’s finances prior to divorce, it’s likely there are budgets, investments, bills, and financial assets that you are unaware of or may now have to actively manage. An expert in divorce financial advice can most effectively guide you towards ensuring financial peace of mind.
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