Working with a Financial Planner During Divorce

One of the biggest mistakes people make when considering a divorce is not understanding their financial picture. In order to correctly determine child support, alimony, and property division, you need to know everything you own, your household income, and your expenses.

Image courtesy of adamr at FreeDigitalPhotos.net

Image courtesy of adamr at FreeDigitalPhotos.net

Working with a financial planner during a divorce can make this part of the process easier. A financial planner can help you understand that fighting for the asset with income potential is a better choice than fighting for the house you can’t afford. A financial planner can also help you understand how to negotiate decisions concerning retirement plans, insurance, debt, and other income considerations.

A financial planner can discuss your long term needs and help you focus on more immediate needs, which include covering everyday expenses, health insurance coverage, and expenses related to the custody and care of your children.

Another benefit a financial planner provides is that a financial analysis helps focus on the numbers rather than the emotions. Conversations are easier because they are fact and data driven.

To prepare working with a financial planner, get organized by putting together important documents: inventory of household items, financial records, credit report, car title and registration, etc. Now is the time to know how much you pay for insurance, how to access online bank accounts, and how to access old retirement accounts. It’s also a good time to understand your credit history and how it impacts your ability to get loans, credit cards, etc.

You should also consider establishing a separate bank account. If you are unemployed, you need to start thinking about future employment.

Whether you work with a financial planner or not, you need to consider the different pieces that are part of your financial picture. Having this understanding allows you to make better negotiation decisions. Most people are too overwhelmed by these matters, which is why a financial planner is a smart idea.

For more information on divorce and family law issues, email Keith@AttorneyGrossman.com or call toll free: 877-687-1392, or locally: 239-210-7516.

Interested in learning more about the emotions that can surface during a divorce, read my free e-book, “Does Every Divorce Need a Shark?”

Does Every Divorce Need a Shark?

     Posted on August 29, 2015 at 8:39 am | No comment

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