Life in Motion: The Steps to Take When Considering a Divorce
September 16, 2020, by Kelly Keydel in Divorce Marriage & Domestic Partnerships
Tags: Divorce, Life Changes, Transition
Search
Popular Posts
- 6 Tips For Buying a Starter Home in the Bay Area posted on September 1, 2019
- Understanding the Real Costs of Raising Kids in the Bay Area posted on February 18, 2020
- Private Ocean Welcomes Mosaic Financial Partners posted on September 25, 2018
- 3 Big Misconceptions About Millennials – From a Millennial posted on September 13, 2018
- Important Documents To Bring With You In The Event Of An Evacuation posted on October 28, 2019
Tags
Bay Area
Business
Business Owner
Business Succession
charitable giving
Community
Company News
Current Events
Death of a Spouse
Divorce
Education Planning
ESG Investing
Estate Planning
Family
Financial Planning
Gifting
I have already accumulated wealth
Inheritance
Investing
Investment Management
Invest Responsibly
IPO
I’m a business owner looking to retire
I’m a professional or executive of a company
I’m retired or getting close to retirement
Job Transition
Liquidity Event
Looking at the Evidence
Markets
None of these apply to me
None of these describes me
Other
Parental Care
philanthropy
real estate
Retirement
Retire Well
San Francisco
Selling a Business
Start a business
startup
Stock Option Planning
Travel
Women
Work Optional
Divorce is an emotionally difficult life event that requires a tremendous amount of change in the lives of everyone in your family. Whether you are contemplating a divorce or your spouse has taken the initial step to file for divorce, both parties should have a strategy to help navigate the situation with care so that it may result in a favorable outcome (financially and otherwise) for everyone.
As a Certified Divorce Financial Analyst (CDFA), I counsel clients on the early steps they can take to best prepare and protect themselves. Divorce may be something you have been contemplating for quite some time, or something that your spouse initiates and is a surprise to you. Either way, it is never too early to seek support from professionals. These professionals would include legal, financial and emotional experts who can help you to gain a clearer picture of your situation and your options, ultimately helping you to be more prepared as you move forward. So, putting together your “team” is critical, as well as beginning to gather information about your financial situation. This would include investment and bank accounts, sources of income, expenses, liabilities, and even benefits such as health and life insurance. It isn’t necessary that all of this information be gathered before you file for divorce, but again, developing a clearer picture will help you to be more prepared as you think about your next steps.
Key Team Members May Include:
Above all, you want to identify professionals who are a good fit for you – think of this as if you were interviewing a job candidate. Asking for referrals from trusted advisors, or family and friends can be a great way to identify these important team members, and again, ensure that they are the right fit for you.
Sharing Team Members
In some situations, both spouses may work with the same professionals, such as a financial advisor, and it can feel extra stressful to feel as if you or your spouse feel you must suddenly find new team members to ensure that they have your best interests in mind. In our experience, these trusted advisors should easily be able to maintain separate confidential relationships with divorcing spouses. That being said, you will want to have different attorneys representing both of you to avoid a conflict of interest.
Men and Women: Is there a Difference in How We Should Strategize How to Approach Divorce Proceedings?
The legal process is the same for both women and men. However, there are some planning differences that may need to be taken into account for females versus males. For instance, women are often the primary care givers for the family, and many women forgo their professional careers to stay home with children, or even aging parents. Accounting for discrepancies in earned income is important. Will a female spouse who has been staying home with children have to go back to school to have greater opportunities in the work place? On a similar note, women may be the primary custodial parent for children, and thus bear more of the expense related to raising children. Again, this should be accounted for when determining child support and/or maintenance. And, as mentioned, women tend to be the primary caregiver not only for children, but for aging parents. Building in an expense for support of an aging parent into the financial plan may be important.
When working with a financial advisor, women should be planning for a longer life than men, and the need for their resources to potentially last longer. These are some of the primary differences that are commonly seen between women and men as they plan for their financial well being both during and after a divorce.
After the Divorce
Once you are through your divorce, from a financial perspective, it is now time to do a thorough review of your financial plan including your goals, the resources you now have post-divorce, how you will manage cash flow, identify whether you need to change any of your insurance benefits, or update your estate documents.
As you work with your financial advisor to develop a clear plan for yourself, including a strategy that protects and grows your investments, you will be able to make informed decisions that will lead you and your family to financial success. You will be prepared for your future, and feel much more confident and secure in your well-being.
Additional Resources