If you’re dealing with the intricacies of a divorce, you might start to wonder: Do I really need a financial advisor if I’m already working with a divorce lawyer? As you move through the divorce process, you will be required to make quite a few decisions regarding your future as a single adult. Working with a financial advisor may help ensure you are making fully informed financial decisions and may also save you money and time during the divorce process.
You should think of your divorce as a financial transaction in which everything you own jointly and everything you owe jointly are to be divided between you and your spouse. It is the unwinding of both an emotional and financial partnership.
To break it down simply, here’s a handy list of the major differences between what a financial advisor can handle and what your divorce lawyer can help you with.
Financial advisors can help:
- Create a realistic budget as you move through the divorce process and beyond.
- Educate you on the financial characteristics of your assets such as tax implications.
- Determine a long term financial plan for your life as a single adult.
Divorce lawyers can help:
- Educate you on the legal process of divorce.
- File legal documents with the court such as summons and complaints.
- Represent you in the divorce proceedings and in a court of law.
A CDFA™can help provide you with a clearer view of your financial future. With that clarity, you can negotiate a divorce settlement that fully addresses your immediate financial needs, and avoid long-term financial pitfalls due to poor choices made based on the lack of financial intelligence.
Working with you and your family law attorney, a CDFA™ can forecast the long-term effects of various divorce settlement options, including tax liabilities and benefits, develop detailed household budgets to avoid post-divorce financial struggles, and help you think through what your divorce will realistically cost in the long run.
Loretta Hutchinson is a member of the DailyWorth Connect program. Read more about the program here.
Financial Divorce Plan is a affiliate of InSync Financial Group, a registered investment advisor. For disclosure information click here.