Best Divorce Financial Planner in USA
Best Divorce Financial Planner in USA
Divorce can be traumatic – both emotionally and financially.
It’s the closing of a chapter of your life with another person.
It can be stressful, confusing, and extremely expensive.
While most people realize the importance of hiring a lawyer when they’re getting divorced, many people fail to address the importance of hiring a financial planner as well.
Why you should hire a financial Advisor before divorce- Best Divorce Financial Planner in USA
Hiring your own financial adviser—right away—can be the difference between a workable settlement and disaster.
Too often in divorces, divorcing spouses each hire their own lawyer but not their own financial adviser. It’s a mistake that many wealthy people make, and one that can make them a lot less wealthy.
Unfortunately, most people seek financial advice only after the divorce, once things have already gone awry.
It’s an easy mistake to make. Divorce is a stressful and overwhelming life event, and people would rather not add a new person into the mess. Rather than seek out a new financial adviser, one or both parties rely upon a lawyer or tax accountant to create the plan to separate the assets.
With an experienced financial planner, you can prepare for a life of financial independence and be better equipped to handle the changes that inevitably emerge during a divorce.
When facing separation or divorce, you want to ensure you can maintain the lifestyle you’re used to – while strengthening your wealth over the long term.
With a financial advisor who specializes in divorce, you’ll be in a better position to do both.
The financial impact of a divorce can be daunting.
But by making the right decisions today, you can create a more comfortable, secure tomorrow.
As you can imagine, many proposed financial agreements can be shrouded in legal jargon.
And although these agreements may appear fair at first, they don’t always deliver the long-term financial stability you need.
Even once you and your spouse have divided your assets with a legal team, there are still a number of variables that need to be accounted for.
- Changes in levels and sources of income
- Adjusting your monthly budget to address a new set of needs
- Continuing to work towards your long-term financial goals
- Finding ways to adequately provide for your children (if you have them)
- Responding to the legal consequences of getting divorced
Financial Planning during Divorce – Where to Start
Start with an honest check of identifying and valuing all the assets, debts, income and expenses that you each hold individually and as a couple.
For more complicated finances, this may involve assets held in a company or other structures.
Everything is up for negotiation and your lawyer and financial advisor will need this information to ensure they can optimize your situation.
Don’t wait for the final settlement to be agreed before reviewing and changing the beneficiaries in your will, your insurance and pension.
How to successfully rebuild your financial life after divorce
To successfully rebuild your financial life after a divorce, you have to go back to basics with a budget and a comprehensive financial plan.
While your relationship with your lawyer will probably end with the divorce, your relationship with your financial planner will last many years.
So choose one that you can comfortably share intimate information with, one you trust and who helps you get your finances back on track.
They will assist you to surround yourself with the financial resources and assets that will help you and your family move forward in a positive direction and help you create and support the life you deserve.
Don’t focus so much on the little things that you forget what’s important.
In a contested divorce, you are likely to accumulate thousands of dollars in attorney’s fees because your lawyer must spend an enormous amount of time preparing the case and filing paperwork.
You may be angry but remember the more you and your spouse argue over issues or items, the more you pay in attorney’s fees. Concentrate on what really matters, and focus on that.
Leaving a decision up to a third party often means you end up not getting what you really want, and with a gigantic legal bill to boot.
Financial planning after a divorce – Best Divorce Financial Planner in USA
The divorce cost does not end with the actual proceedings, and the legal end of the marriage.
You should also think carefully about how the divorce will affect your future financial security.
Separation of finances during Divorce
At the basic level, you will undergo a significant change to your financial situation. When you were married, you would have shared lifestyle costs such as bills, and housing. When you divorce, you will need to budget for a completely new situation. Both parties will need to pay for separate housing, and your bills will change.
Preparing a new budget during Divorce
As a minimum you should prepare a budget to understand how your finances will change once you have divorced. Your finances will become separate before you divorce, but this is not the end of the matter. You should also consider how any financial settlement may impact your short-term and long-term future. Be careful to consider whether you are giving up long-term stability in exchange for short-term needs.
The family home
It is very common for the family home to form part of any financial settlement when you divorce. This inevitably means that there will be an impact on your finances. You may have to pay for a mortgage on an ongoing basis, or instead may need to fund a new home if the family home is to be sold.
You may receive maintenance from your former spouse, particularly if you have children; alternatively, you may have to pay maintenance, if your income is greater than your former spouse.
Take account of the agreed schedule of payments: how much is due, and over what period.
You should consider what you will do when the maintenance stops. If you are receiving maintenance, will you be able to live comfortably? If you are paying maintenance, you may need to hold back certain financial decisions until a later date.
Pensions are often one of the largest assets in a divorce settlement. Often pensions are greater value for one spouse than the other. In this case, it is common to pass part of the pension assets from one spouse to the other. This needs careful attention from a financial adviser, as important decisions will need to be made.
How financial planning can help with divorce costs
If you are getting divorced, you may benefit from having a clear view on what your future financial situation could look like. You will want to know that your future is secure and that you will have enough.
A divorce can be a financially challenging time and you will have a number of questions relating to things like the value of your pensions and those of your spouse. You will also be interested to know how much money you will need to maintain your existing lifestyle.
Financial equality is the goal
While many divorcing couples will require a mediator or lawyer to divide their assets, using a financial adviser as well will ensure that everyone’s money is protected. It could even avoid a costly court case if an adviser helps you divide things equally.
The ideal scenario in a divorce is for the court to endorse a financial agreement that has already been agreed by the couple, with a process known as a consent order. Coming to an amicable agreement in advance will help this to happen.
Mintco Financial Teams Of Independent Advisors – Best Divorce Financial Planner in USA
Getting a financial advisor with full information about all the assets you hold jointly and separately, as well as projected budgets for both of you and costs involving any children or other dependents, will help you to achieve a financial agreement that takes everything into account.
Where a divorcing couple are seeking to collaborate to get the best outcome for everyone, a financial adviser can act as a neutral party, giving guidance but not advice.
They could also advise both parties on the cost of buying a new home, getting suitable life cover and how to share pension benefits and other assets in the most tax-efficient manner possible.
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