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
changes.
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!