Divorce is an emotionally and financially challenging process. While many individuals focus on the emotional aspects of a split, it is also important to consider the financial implications.
There are many reasons working with a financial advisor during a divorce can be beneficial.
Amid divorce, untangling shared finances can be complex. A financial advisor can help you assess your current financial situation, including assets, debts and income. This clarity helps you make informed decisions about the division of assets and ongoing financial plans.
Determining the value of shared assets, such as homes, investments and retirement accounts, can be difficult. A financial advisor can provide expertise in evaluating these assets, ensuring a fair and equitable division.
Budgeting and financial planning
Post-divorce, your financial situation may change significantly. A financial advisor can help you create a budget, set financial goals and establish a plan for your future. This, in turn, helps you maintain financial stability and achieve your long-term objectives.
Divorce may also impact your retirement plans and savings. A financial advisor can help you adjust your retirement strategy, ensuring that you continue to save adequately and protect your financial future.
Dividing shared debts is an important and often contentious aspect of divorce. A financial advisor can assist in creating a plan to manage and distribute debts effectively, helping prevent financial hardship.
Child and spousal support
If you have children, child support and potential spousal support payments are important financial considerations during divorce. A financial advisor can help you understand these obligations and create a financial plan that accommodates them.
While working with a financial advisor amid divorce offers many advantages, many people fail to do so. In fact, Forbes notes that more than 60% of now-divorced women who did not work with financial advisors during their splits wish they had.