When I tell people what I do, I say I help people have a kinder, less fearful, more affordable and financially guided (or smart) divorce. My other blogs have talked about why hiring The Right Divorce Solution will help you have a kinder, less fearful and more affordable divorce. This blog is dedicated to telling you why divorce financial advice is crucial and why hiring me, Mary Salisbury, Certified Divorce Financial Analyst (CDFA), will help you divorce financially smart.
- Treating your divorce like a financial settlement, which with the exception of child custody, is what a divorce is, and getting the expert divorce financial advice you need is financially smart.
- The biggest misconception that people have when they hire an attorney is that their attorney will give them the financial guidance they need. Attorneys are professionals trained to advise and protect people’s legal rights, and they must have a depth of knowledge in all areas of the law in which they practice in order to represent their clients adequately. It is not really fair or reasonable to expect that they will also have the depth of knowledge that a CDFA has about taxes, pension distributions, insurance issues, long-term ramifications of property division or financial planning.
- It’s critical that people know how they will be able to live after the divorce. Most divorcing couples are making decisions based on a snapshot of their financial situation. Living arrangements, budgets, support payments and jobs are just some of the things that change a lot in the few years post-divorce. What about that car that is only going to last a few more years? A CDFA can provide an analysis that includes those changing financial needs.
- If you are in a “gray divorce”, Social Security comes into play either now or in the near future. A CDFA will include Social Security payments into your long term financial picture.
- Dividing a pension has a lot of pitfalls that many attorneys are not aware of. I spent 11 years as an employee benefits specialist and can help avoid pitfalls associated with splitting a pension or 401(k) with a QDRO. (See my blog about QDROs http://therightdivorcesolution.com/qdro-divorce/).
- The marital home is emotionally charged and keeping it might not be affordable. An analysis of what your income and expenses will look like when child support and alimony end might prevent you from regretting the decision to keep a house you really cannot afford.
- Taxes, taxes, taxes. Income, child custody, alimony, sale of a home or other real property, sale of investments, executive compensation and pension/401(k)/IRA distributions all have tax implications which need to be analyzed to ensure there are no big surprises. Not all assets are created equal after taxes are considered.
- You need to be careful with marital debt. Just because the marital agreement says one party is responsible for paying a debt doesn’t make that person solely responsible if they default.
- What if the supporting spouse dies or becomes disabled? How can you ensure your support will continue?
Divorce financially smart and hire The Right Divorce Solution!!!