Financial Aspects of Divorce
Considering Your Finances
Positive, negative, confusing… going through a separation or a divorce feels like an emotional whirlwind. Not only are you doing your best to move forward daily, you are also thinking about the future and how to find order, as many elements of your life change. By focusing on empowering your financial future, you’ll be able to move forward with peace of mind.
Divorce 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 way to make sure that you are financially protected during – and following – a divorce. If you are divorced or divorcing, your financial plan has likely shifted. This means it is time to revisit your short-term, medium, and long term financial goals.
Managing Assets
Throughout the divorce process, it is critical that you have a handle on 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 open bank accounts such as credit cards
New Spending Habits
Throughout the divorce process, it will be essential that you are aware of all your assets before deciding how to divide them. Compile a list of all your accounts and assets, including:
• Current Income sources in the form of bank statements, pay stubs, and income tax returns
• Retirement accounts such as 401(k)s, Roth IRAs, Traditional IRAs, and Pensions
• Loans and debts
• Property deeds
• Credit cards and installment plans
Your normal monthly budget will likely change after your divorce is final. While your income and retirement contributions may stay the same, your spending habits and additional contributions to spousal or child support may change your situation.
Life Managed can help you to reevaluate your budget and decide where daily, monthly, and annual spending can be changed. This is an essential time to loop us in so that we can help point you in the direction that best aligns with your overall financial plan.
Downsizing & Recovering from Divorce
You might be downsizing from a large home to a condo or apartment, taking on payments of utilities and other bills, increasing tuition payments for your child, or other discretionary purchases readjusting to your new lifestyle will be part of the process. Being single again can be both emotionally and financially stressful, which is why it is so important to have help figuring out your financial strategy.
Life Managed is experienced in planning for divorced and divorcing couples and individuals, and can help ease your financial transition by providing experienced insights while facilitating cooperation and communication.
Experts You Need On Your Side During a Divorce
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:
• Attorney
• Certified Public Accountant (CPA)
• Mediator
• 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. This is something we can help you with as well, with our experienced and highly recommended network of providers.
