As soon as you begin to contemplate divorce, the realization of losing half of your net worth may kick in, and you find yourself wondering if it’s even worth it financially to consider leaving.
There are ways though to ensure that your financial future is not destined for disaster. First and foremost, early on in the process contact a financial professional that specializes in divorce (such as a Certified Divorce Financial Analyst®), so that you can be fully informed of all the creative settlement possibilities that may be open to you.
Here is an example of how a CDFA® might help. A couple married 24 years were referred together to a CDFA® colleague for assistance with their divorce. They had previously consulted with one Attorney together and seemed to be amicable about their divorce. The Attorney had made it clear that he could only do their document preparation since he was ethically bound to represent only one of them.
They understood that and asked him how they could determine their property division. The Attorney had responded, “This is a community property state, so just divide each asset and debt exactly 50/50.” Well, the couple just didn’t feel like maybe that was the smartest thing for them to do. So, they hired the Certified Divorce Financial Analyst® to assist them with exploring additional options.
After gathering all their financial documents and completing an analysis, the CDFA® presented two reports to the clients. The first one reflected an exact 50/50 division of all their assets and debts as the Attorney had suggested. The second report was a more creative settlement solution that also resulted in a net 50/50 division, but took into consideration tax planning and other consequences, as well as the needs of each party as they planned for the next phase of their lives.
The couple had less than $800k in total net worth and the creative solution resulted in an additional $20,000 EACH to their bottom line … just because some financial intelligence was used to determine their settlement. Now, that’s real money and the couple was thrilled knowing that they had saved $40,000!
We can’t guarantee the same exact result for you, but certainly, you shouldn’t go into your divorce blind and unknowledgeable. There are many ways to ensure that both of you get to keep more of your own money. Involve the right experts on your team.
We’d love to help you! Call Sand Oak Divorce Solutions today at (850) 252-6325 to schedule your free 30-minute initial strategy session.