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Divorce and Financial PlanningAs a novice with no training, crunching numbers can be a tedious process. It’s even more stressful when you’re looking at your own assets and trying to gauge a budget or plan for the future. Divorce in today’s world can really do damage to a nuclear families financial situation. Jobs, kids, the economy, and lack of personal time all add to the perfect storm of stress when figuring out how your life is going to change post-divorce.

The financial side of divorce is almost beyond any normal couple’s capacity to figure out alone. With emotional tension and animosity, the winds of an uncertain financial future can blow any newly divorced spouse off course. Fortunately, as these situations arise in today’s society we create jobs or niche positions to fill that gap. We often use financial planners for budgeting, figuring out a mortgage, and a number of other financial situations. But now fully preparing for your financial future, even before your divorce is near completion, is a must.

Monetary preparation for the future

Emotional effects of a divorce are unavoidable. No matter how much you prepare for a split in a marriage the residual repercussions throughout your life, and the life of your ex-spouse, will be felt for years to come. Financially figuring out the ins and outs of a divorce has gained a stigma in our culture that has been satirized and studied seriously for many years. There is no avoiding the delicate situations of sharing assets completely for an extended period of time and then having to divide everything in an “equal” fashion. Planning for your financial future in today’s world has never been more critical. Many people with the means have turned to financial planners that specialize in divorce finances and planning to help ease them into a new budgetary realm while preparing for the next phase of their life.

Financial planners can be brought in even before the divorce is officially filed to assess the value and amount of assets shared between the soon-to-be divorced couple. However, a financial planner is not a financial fixer. The role they are undertaking and tasks can be defined yet might change over time. Some of the main goals or tasks a financial planner can help with are:

  1. Gathering, organizing, and preparing documentation of income, expenses, assets, and liabilities
  2. Preparing financial reports within the context of divorce laws specific to a state
  3. Providing ongoing financial education, guidance, and analysis throughout the divorce process
  4. Making and explaining projections for the long-term impact of financial decisions and related tax implications
  5. Assisting the client with post-divorce asset transfers, estate planning, and development of the long-term financial planning goals

Without help the shift in financial well-being for most divorced couples can greatly affect their day to day lives and continued well being. Naturally there will be unavoidable changes, no matter the situation and how great you plan for the future. You are working with a finite number that is being literally split in “half.” Questions will arise that financial planners can begin to help sort out for a newly single or soon to be single spouse such as:

  1. What housing can I afford?
  2. How much life insurance do I need?
  3. How do I prioritize which debts to pay first?
  4. How do I protect my credit rating from my spouse’s negative actions?

Having an experienced and professional objective opinion to help you with the burden of future finances can go a long way to relieve stress. Being prepared is vital to helping any divorced individual land on their feet. Finances and budgetary concerns are things that all of us, with or without families, have an equal and individual vested interest in. When it comes to such a personal situation as a divorce and the splitting of finances and assets, there is no better way to get a handle on the situation than to have a trusted and bi-partisan expert in your financial corner.

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