Going through divorce is stressful for all involved. Financial concerns and uncertainty only add to that stress. Financial planning for divorce can help relieve uncertainty and financial stress. Planning for divorce can get complicated, and requires specialized training and knowledge. Luba Globerman, CFP(r) of Financial Pathways has undergone such training and been recognized by the Institute for Divorce Financial Analysts as a Certified Divorce Financial Analyst (CDFA).
Too many people struggle through the entire divorce process before they even consider long term financial implications. While better late than never, we believe the best time to do some divorce financial planning is early in the process. Here are a few benefits of getting professional financial advice from a CDFA™:
1. Save time, increase understanding. Frequently one or both parties to a divorce may not be familiar with or have much understanding of the financial situation. A Certified Divorce Financial Analyst can help assemble a snapshot of the current situation as well create and explain various “what if” financial projections. Such understanding can help clients make better informed decisions throughout the proceedings.
2. Focus on long term financial security. Financial planners are trained to focus on the long term. We can work with a client and/or his or her attorney to forecast long term effects of a settlement including tax implications. Financial decisions made during this process should take into account not only immediate needs, but retirement needs as well.
3. Conserve resources. A legal settlement that floats back and forth between attorneys, without the client having a clear understanding of all financial ramifications, can be detrimental, time consuming and expensive. We can help provide you with a thorough knowledge and understanding to help expedite the often-complicated financial decision making process.
4. Financial Expertise Benefits both Attorney and Client. Financial planning can provide valuable information on financial issues that are related to the divorce, such as tax consequences, dividing pension plans, continued health care coverage, stock option elections and much more. We can help attorneys by helping the client make financial sense of proposals. We can give lawyers the tools they need to help prove their case.
4. Post Divorce Budgeting and planning. Even before the settlement is complete, a financial reality check may be needed. How much home can you afford? What about college? Retirement? Insurance needs? A comprehensive plan can help you make smart financial decisions and avoid common financial pitfalls.
6. Post Settlement Follow Through. Certain components of many divorce settlements such as QDRO retirement plan / pension benefit transfers often require diligent followup. As a long term financial planning partner, we can help you stay on top of such issues until they have been satisfactorily resolved.
7. College Planning for Divorce. Divorce settlement details can have a significant impact on financial aid status of the children. As a team, Luba’s specialized divorce knowledge and Jim’s training as a Certified College Planning Specialist offer a powerful combination.
8. Insurance Needs Analysis. If a settlement involves alimony, child support, or college funding, it is often essential to insure against the responsible parties premature death or disability. As licensed insurance professionals, we can help provide expert input, and even write and place the necessary policies in a manner that protects our clients interests.
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