![]() ![]() A divorce often takes a year or more to finalize. They can help you negotiate a fair settlement based on the true value of your assets.Ī financial planner becomes a partner and advocates for their client as they proceed through the divorce process and can be the link between the attorney to help educate the client on the steps being taken. A financial advisor can help you understand the true value of your assets, including real estate, investments, and retirement accounts. Or there could be unrealized capital gains on the house or their investments that would be realized and potentially taxed upon sale in the future. However, doing so means they may receive less in liquid assets which can provide income or liquidity to cover future family expenses. They can also help you create a plan for any retirement accounts or other investments that may be divided during the divorce, including running several cash-flow and asset scenarios to map out potential future outcomes and explore which one may be the best solution.Īssistance with Property and Asset DivisionĪ client may want to keep the house, especially if they want to provide continuity for their children. If the divorce is moving forward and negotiations have begun, the financial advisor can help you plan for your financial future post-divorce, including budgeting, saving, and investing. ![]() Should that spouse pass away or become unable to care for the children, you would have to hire a caregiver for those kids. While one would think a policy on the main breadwinner is the most important, having a policy on the spouse who is at home with the children is equally imperative. Should you go through a divorce, you may need to retain these policies on both spouses to ensure continuity of income, especially if alimony or child support is involved. Risk management is another area of importance to ensure there is enough insurance in place that could cover the death or disability of one of the spouses. The advisor’s role is to help you get a clear picture of your spending, assets, liabilities, and income. The client’s focus may have been on the children or their career, and their spouse was the one who managed the family finances. Many times, I work with new clients who have no idea of their family spending, where their income is derived, and where their assets are located. However, if you are not working with a financial advisor, it would be prudent to engage one who can help you organize your finances, outline any potential legal fees, give you an understanding of your investments, and be there as a resource should you go through a divorce. All of these are life-changing events that you want to fully understand before you take the first step in a divorce.Ĭlear, Objective Advice for Moving Forward ![]() Some recommendations may include a reduction in spending, returning to work, selling, or downsizing your home, or even solutions to minimize your taxes. The advisor can also estimate the impact the divorce will have on your finances so you can make an informed decision on your next steps. If you are already engaged with an advisor and you are contemplating a divorce, the advisor already has access to all your financial data and can help provide this information to your attorney or mediator. What is a financial advisor? A financial advisor is a professional who looks at a client’s entire financial picture - cash flow, estate planning, taxes, investments, and insurance - and advises them on how to achieve their short- and long-term financial goals. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |