The entire process of divorce can be intimidating, confusing and overall draining to even the most financially sophisticated. It is critical to understand every aspect of divorce in order to live in a successful, happy and deserving life moving forward.
If you weren’t the one who handled the money in the marriage, the financial area of discussion in divorce can be extremely confusing and overwhelming. A Certified Divorce Financial Analyst by your side may be exactly what you need.
A CDFA can help determine the short and long term financial impact of a proposed property settlement agreement. Many times, people agree to financial terms in the divorce that don’t actually work in real life post-divorce. A CDFA can help to review alimony and child support, assets and expenses, pension and retirement assets and tax and insurance issues.
Here are five things you need to consider financially when a divorce is on the horizon. Plan as early as you can so that there are no surprises.
Inventory your assets and liabilities:
Gather a comprehensive list of all assets in the marriage- cash, investment, retirement accounts, pensions, real estate, collections, vehicles etc. Additionally, get an accounting of all debt – credit cards, student loans, IRS, mortgages and lines of credit. Make copies of everything.
Income and expenses
Gather as many tax returns and W2’s as you can find from the marriage. Start to get an idea of where you would like to live in your new life post-divorce and put together a detailed list of expenses living in that new life. Find out as much as you can about what your expenses will be and list everything.
Litigation? Collaborative? Mediation?
No matter which way you go you will need to understand the finances of the marriage and the financial implications of the agreements you make. Having a CDFA by your side can give you confidence in knowing that your settlement is financially feasible.
Book a professional financial planner
As soon as you have made the decision to separate, book a Certified Divorce Financial Analyst to assist you. It will make the process much smoother throughout this stressful time in your life. Meet with them early, provide them with any documentation they require, and discuss your requests and your requirements for financial assistance. Give us a call today to find out how we can help make your divorce financial planning process easier.
You can find out more about how a CDFA can help here