White House Financial & Settlement Consulting, LLC helps families live an easier and less stressful life through the achievement of their financial goals by providing comprehensive, fee-only, client focused financial advice and exceptional service.
Search This Blog
Financial Planning in Divorce
We work with many
clients, both individuals and couples, who are going through the difficult
process of divorce. We help them
understand their current financial situation, what they have, and how various
decisions, pursuant to the divorce, may affect their financial future.
I just met with a
gentleman yesterday who is going through the divorce from his wife of 24
years. This meeting made me think of the
common advice which we give to clients going through a divorce, over and over
again, which is as follows:
1.) Understand your
current financial situation and get it in order. What assets and liabilities do you have? What are the account numbers and values? How do you contact the financial
institution? What assets or liabilities
were brought into the marriage and kept in separate name? Make a list of all your assets and
liabilities (debts) and how they are titled.
2.) Review your credit
report. Many clients are shocked when we
review their credit report with them and they find out that there are debts
they knew nothing about. It is typically
a good practice to review it early in the process as well as six months to a
year after the divorce is final to ensure that all the post divorce debts were
titled the way in which they were intended and that there aren't any new debts
which were created without your knowledge.
3.) Create joint
household and individual budgets. It is
impossible to know how various settlements scenarios will affect you
financially if you do not know how much you spend, on what. It is also impossible to get your future
financial house in order if you do not have a plan to get there!
4.) Do not take
financial advice from your attorney.
Attorneys know the law, however, many of them try to practice as
financial advisors as well. Get your
legal advice from your attorney and your financial advice from a Certified
Financial Planner who focuses on working with clients going through a divorce.
5.) Make sure to change
your beneficiary designations to reflect your wishes and the divorce decree (if
applicable) as soon as the divorce is final!
Having ex-spouses listed as the beneficiary on your retirement plans and
insurance policies, when this was not ordered by the court or intended, leads
to significant estate settling issues should you die without making these
White House Financial
& Settlement Consulting helps families live easier and less stressful lives
through the proper management of their financial resources. We do this by acting as our clients’ trusted
advisor providing a personal touch customized to the client’s needs! Please visit our web site at www.whitehousellc.com
for more information!
We had an awesome time at the Michigan Association of Justice Worker's Compensation seminar where Cyril spoke on the best strategies for using structured settlements in Worker's Compensation cases. Click the link below to watch the short video of his presentation! Click Here to Watch Video! www.whitehousellc.com
We recently were engaged by the Guardian Ad Litem (GAL) in the case of an 11 year old boy who was struck by a care while riding his bike. The father of the boy settled the case directly with the liability auto insurance carrier pre-suit and the GAL contacted us to ensure that the boy's settlement funds were handled appropriately. The case settled for a total of $65,000 and $59,000 was being allocated to the structured settlement annuity for the boy as follows: $5,000 paid immediately upon settlement $10,000 at age 18 $20,000 at age 21 $25,000 at age 25 $35,718 at age 30 this is total benefits of $95,718! The annuity was placed with a large life insurance company rated A+ by the A.M. Best rating agency and provided the family and GAL with the peace of mind that the young man would not receive the entire amount at age 18. In addition, due to the use of the structured settlement annuity, all of the interest gained during the payout period ($31,718 to be exact) is INCOME TAX FREE! T
Please watch this excellent video where e xperienced and successful personal injury attorney, Thomas M. Bond from the firm of Kaplan/Bond in Boston tells you why a structured settlement is the best choice for the longterm financial security for you and your family when your lawsuit settles for a large sum. Hear how one man made the wrong choice and tragically lost everything. www.whitehousellc.com