Background

Laura earns $95,000 working full-time in a salaried job, and provides group health insurance for the family.  Joe earns $20,000 working part time, and has been a stay-at-home father for the past 12 years. He plans to go back to full time work once their youngest is 12, but is concerned his employment prospects will be limited given his recent work history.

They want to keep their children (Liam age 12, Olivia age 9) in their current school district through high school graduation, but are unsure if this is possible.  

They jointly own a single-family home in a Metrowest Boston suburb (market value = $750,000) with a 30-year mortgage @ $425,000 at 3.25%.  They want to understand the pros and cons of selling the house, nesting in the house (alternating parents in the house on a schedule) or having one buy out the share of the other spouse, including how to finance a potential buyout.

Laura has accumulated about $500,000 in retirement savings; Joe about $200,000.  They have saved very little for college.   

Both Laura and Joe hope to retire no later than age 67, earlier if possible, and both will collect Social Security benefits.  

Our Strategy for Laura and Joe

• Obtain current financial information from Laura and Joe.
  
  
• Help create post-divorce budgets for each household.
  
  
• Analyze child support and alimony options for Joe.
  
  
• Create potential asset division scenarios (some required transferring a portion of Laura’s retirement funds to Joe).
  
  
• Review the feasibility of keeping the home (with a buyout by Laura) or selling it.
  
  
• Discuss post-divorce living arrangements for Laura, Joe, and the children.
  
  
• Provide the financial scenarios to key professionals (mediator; attorneys).
  
  
• Review the proposed separation agreement drafted by the mediator, and make suggestions for a more equitable split of the assets.
  
  
• Assist with preparation of financial forms to file a joint petition for divorce with the Middlesex County family court.

Interested in learning more about our divorce financial planning process? Note that we can work with clients as a financial neutral or with one party only.  Click here to schedule a time to discuss your situation.

Disclaimer - This case study is provided for illustrative purposes only and is hypothetical in nature. It is provided to help you better understand the kinds of situations we commonly encounter and how we approach them. An individual’s experience will vary based on his or her individual circumstances.