Divorce Financial Planning
If you are contemplating a divorce, it is important to fully understand the financial impacts for you and your spouse post-divorce, as well as the emotional and family consequences.
There are different types of divorce, depending on whether or not your divorce is uncontested or contested. Requirements to file for divorce vary by state, so understanding your state laws is important. Consider which professionals can best assist you in the divorce process. This may or may not include attorneys, a mediator, therapist, CPA, business valuation analyst, divorce coach and/or a Certified Divorce Financial Analyst®, or CDFA®.
Many variables must be considered in divorce – length of the marriage; age of each spouse; age of children (if any); how each partner will support themselves - and any children - after the divorce; division of assets; income for each partner; how to potentially refinance debt; what to do with the marital home; income tax implications; etc.
FPS offers services working with you as a CDFA®. We offer two options: working as an advocate for one party or working as a financial neutral. Both options require the same data (financial information from both parties).
Where do we start?
Here is how our financial planning process works:
We start with a 30-minute complimentary call to learn about your pending divorce and to determine whether FPS would work with you as a financial neutral or for you alone. If we both agree that working together will be beneficial, we request that you provide a set of financial documents and statements and proceed to Step 2.
Prior to meeting, your financial data is entered into our divorce financial planning software, noting how assets, debt, income, and expense items are titled, jointly or in one name. We review this data with you to ensure that we have a complete picture of your joint financial situation. If more information is needed, we request this be provided prior to Step 3.
We confirm your data and share our assumptions about your finances. We review your post-divorce budgets, including alimony and/or child support options. We discuss potential scenarios to consider for asset division (retirement and non-retirement), employee benefits, pensions, the marital home, etc. This includes how each party will fare financially at least five to ten years post-divorce.
We present the final scenarios to consider in divorce negotiations, with an action plan to share with your attorney and/or mediator.