When going through a divorce, most people understand the importance of legal representation, but one often overlooked yet crucial member of the team is a financial planner. Divorce brings a host of financial considerations, from dividing assets to planning for future expenses on a single income, and amid these changes, a financial planner can be an anchor, offering objective guidance and expertise to help you navigate toward a secure financial future. Here’s why including one can be invaluable during this critical time.
Untangling Marital Finances
One of the primary roles of a financial planner in divorce is to help untangle the web of marital finances. They can assess income, expenses, assets (including retirement and investment accounts), and debts to create a clear and comprehensive picture of your financial landscape. This analysis is essential for informed decision-making as you divide your finances and look toward the future.
For example, a financial planner can explain the long-term implications of retaining certain assets. Is it better to keep the marital home or prioritize retirement and investment accounts? With their objective insights, a financial planner works in harmony with both you and your attorney to negotiate confidently for a fair settlement that suits your unique needs.
Navigating Tax Implications
Taxes are a significant aspect of divorce that often get overlooked. A financial planner’s expertise can be invaluable in navigating this complex area. They can provide guidance on the tax consequences of dividing assets, support payments, and changes in tax filing status. This proactive approach minimizes potential tax burdens and helps reduce unwanted financial surprises that may arise after the divorce is finalized.
Planning for a New Financial Reality
Perhaps the most valuable role a financial planner can play is in helping you adapt to the financial realities of a new life. Following a divorce, your financial landscape may look very different, and a planner can assist in creating a realistic and sustainable financial plan that works for your new circumstances.
A financial planner will work with you to assess factors such as income, expenses, debt, savings goals, investment strategies, insurance needs, and estate planning. With this roadmap and the support of a trusted partner, you can make informed decisions about your financial life. Having a financial planner by your side offers peace of mind and a clear path forward in what can feel like uncharted territory.
Providing Stability in a Time of Transition
Divorce is a time of emotional and financial upheaval, and the professional guidance of a financial planner can provide much-needed reassurance. Their expertise can help you regain control of your financial future, fostering a sense of stability and confidence as you move forward. A financial planner’s role extends beyond numbers; they offer a sense of calm and clarity, helping you to take confident steps toward a secure and fulfilling future.
In Summary
Divorce marks the end of one chapter, but with the right team in place, it can also be the beginning of a new and rewarding phase of life. Including a financial planner in your divorce team allows you to make informed, confident financial decisions. By gaining clarity and stability in your finances, you’re better positioned to move forward with confidence, ready to build a strong foundation for the next stage of your life.
Wealthspire Advisors LLC and its subsidiaries are separately registered investment advisers and subsidiary companies of NFP, an Aon company.
This material should not be construed as a recommendation, offer to sell, or solicitation of an offer to buy a particular security or investment strategy. The information provided is for informational purposes only and should not be relied upon for accounting, legal, or tax advice. While the information is deemed reliable, Wealthspire Advisors cannot guarantee its accuracy, completeness, or suitability for any purpose, and makes no warranties with regard to the results to be obtained from its use.
Wealthspire Advisors and its representatives do not provide legal or tax advice, and Wealthspire Advisors does not act as law, accounting, or tax firm. Services provided by Wealthspire Advisors are not intended to replace any tax, legal or accounting advice from a tax/legal/accounting professional. The services of an appropriate professional should be sought regarding your individual situation. You should not act or refrain from acting based on this content alone without first seeking advice from your tax and/or legal advisors.
Certain employees of Wealthspire Advisors may be certified public accountants or licensed to practice law. However, these employees do not provide tax, legal, or accounting services to any of clients of Wealthspire Advisors, and clients should be mindful that no attorney/client relationship is established with any of Wealthspire Advisors’ employees who are also licensed attorneys.
Please Note: Limitations. The achievement of any professional designation, certification, degree, or license, recognition by publications, media, or other organizations, membership in any professional organization, or any amount of prior experience or success, should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results or satisfaction if Wealthspire is engaged, or continues to be engaged, to provide investment advisory services.
Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
CERTIFIED DIVORCE FINANCIAL ANALYST® or CDFA® professionals must develop their theoretical and practical understanding and knowledge of the financial aspects of divorce by completing a comprehensive course of study approved by the Institute for Divorce Financial Analysts (IDFA). CDFA® professionals must have two years minimum experience in a financial or legal capacity prior to earning the right to use the CDFA® certification mark.
