Transition Planning for Divorce
Your Marriage May Be Over, But the Rest of Your Life is Still Ahead
Divorce can be a difficult and demanding transition. Life as you’ve known it changes … feelings are hurt, stress levels rise, and the “unknowns” multiply. At the very time you are feeling most confused, vulnerable, and overwhelmed, you are called upon to make choices and decisions that can have implications for a lifetime.
A knowledgeable, understanding and trusted advisor who specializes in the fundamental, financial and tax aspects of divorce can help you though this challenging transition. We can…
- Prepare required financial paperwork
- Work and communicate with your attorney in an efficient and effective manner
- Visualize the short-term and long-term financial impact of a proposed divorce settlement, (i.e., how it works now as well as down the road).
- Understand the financial, tax, and quality of life ramifications of your decisions
- Avoid the common financial pitfalls of divorce
- Manage your expectations with respect to lifestyle before and after divorce
- Keep focused on the future
Your marriage may be over, but the rest of your life is still ahead. Together, we can work to fashion a viable financial future for you and your family.
Answering Tough Questions about Money Management and Divorce
During the course of the divorce, you’ll find yourself facing a range of new financial issues. We can help you answer questions like:
- Can I afford to keep my house?
- How will our assets be divided?
- What about spousal and child support payments?
- Will I have enough to live on after the divorce?
- Can I continue my current lifestyle?
- What happens to my health and other insurances?
- How will I manage my finances?
- How will I deal with taxes?
- How will my children go to college?
- How will I support my family as a single person?
- Will I ever be able to retire?
- Am I going to be OK financially?
Understanding your financial situation will give you a much-needed sense of control over your life… before, during, and after divorce.
Is Going Through a Divorce
Marilyn and her husband have been separated for some time, and they have finally decided to divorce. Marilyn is scared and angry, and not sure what her life is going to be like raising two small children. She’s worried about the shared custody they have discussed. She has never handled finances before, and is concerned about generating cash flow, managing a budget, paying taxes, paying for college, etc.
She expects to receive a large settlement, but is concerned that assets won’t be divided fairly. She is considering fighting for the house, but deep down she is afraid the mortgage payments will be too difficult for her to manage alone. Will she have enough money to live on from her settlement and child support, or will she have to get a job to support her and the kids?
Are you going through a divorce?
Contact the Enrichment Group for Advice >>
The Transition Process for Divorce
Our team has extensive experience helping clients make informed choices during the complexities of a divorce. Our experienced and credentialed financial planners will guide you through our proven step-by-step Transition Process, which has been used for more than 26 years to help clients secure a stable financial future.
Here’s a glance at what the process might look like if you’re going through a divorce:
Step 1: Evaluate
Assess the Situation
What is the situation? Where are you currently at in the divorce process? What path is this divorce likely to take? Is domestic violence an issue? Are there children involved? To what degree were you involved in handling the finances during your marriage? What are your greatest personal concerns? What are your greatest financial concerns? What kind of support systems do you have in place?
Step 2: Organize
Categorize the Situation into Logical Groups
What are the different options for obtaining a divorce? What type(s) of professional support will you require? What kinds of financial information will you be required to produce? What is your source of immediate income? What are your sources of long-term income? Where will you live, now and in the future? What insurances do you need to have in place? What child-related issues will have to be addressed?
Step 3: Prioritize
Define what is Urgent and Important
A lot of what takes place during the divorce process is “out of your control,” so that means prioritizing is more of an art than a science. What is urgent and important to you is not always the same as what is urgent and important to your attorney, CPA, the court system, etc. There are deadlines that must be met, emergencies that arise, and unexpected twists and turns that demand your immediate time and energy. With that being said, we can help you manage these “priorities” as they come up, and help you determine:
Which decisions need to be made now? Which ones can wait until later?
Step 4: Stabilize
Deal with the Most Critical Issues
Have you made all of the critical financial decisions you need to make for now? Have you confirmed with your attorney that all necessary legal issues have been addressed? Do you have a workable cash flow system in place? Do you have health insurance and other protective mechanisms in place? Are the children coping OK with changes in their lives?
Step 5: Insulate
Create a Decision-Free Zone
Can you postpone all non-essential activities for a few months or longer? Can you postpone all non-essential major decisions until you have had time to adjust to your new life?
Step 6: Financial Life Planning and Investment Management
Start Planning & Living Your Goals
What are your needs and wishes as a single person? How much do you need in a savings account, money market or CDs to feel safe? How much cash flow will you need each month to make sure you can always pay your bills? How do you begin to establish credit on your own? How much insurance should you own? What types of insurance do you need? Is your estate plan current, accurate and adequate?
With respect to your investments, what rate of return do you need to achieve your goals? How much risk are you willing to take? How much risk can you tolerate? Will you need cash flow from your portfolio? What is an appropriate investment portfolio?
If you, or someone you know, is facing a divorce and could benefit from the Enrichment Group’s financial planning services, please give us a call at (305) 274-1600 or contact us today.