Divorce is an emotional experience, especially at the beginning when you are probably experiencing feelings of anger, betrayal, shock, loss, rejection, grief, confusion, panic or a combination of all of these. The idea of thinking about financial options may seem overwhelming. Don’t despair. Help exists in the form of financial advisors who specialize in the financial issues surrounding divorce. They are called Certified Divorce Financial Analysts (CDFA’s) and should be an integral part of your divorce team.
Are you prepared for all of the financial decisions you will need to make such as:
Which asset is best for me?
How will this settlement option impact my life today and in the future?
What is the tax impact?
It is not easy with so much going on to retain your focus on optimizing your long-term financial health. All assets are not created equal. You have one shot at negotiating your property settlement, so make sure that it is going to work for you now and in the future. Even if you are knowledgeable about financial matters, taxes, etc., the emotional turmoil you are experiencing may derail your ability to clearly evaluate and analyze the financial issues you are facing. Emotional turmoil, and the possible existence of fear of the unknown, may leave you in a state of decision inertia. For example, emotional attachment to assets, such as the family home, can cloud your long-term view and impact your financial decisions. Are you able to impartially ask yourself questions such as “Can I afford to keep the house, or should it be sold?”. A divorce financial professional (a CDFA) who knows and understands the financial issues of divorce, can educate you about your financial options and keep you focused. For this reason, a CDFA can be an invaluable member of your team. To ensure the best possible outcome, you want to be well informed, well prepared and well financed.
The emotional drain many people feel as they face divorce can take such a toll that people often get to a point where they “just want to get it over with” and are ready to just give up and settle. I was one of these people. At this point it is easy to make choices and decisions that are not in the best interest of your long-term financial future just to have the process end. Remember, this is the ONLY opportunity you have to ensure your financial security for the rest of your life. DON’T LET YOUR EMOTIONS CONTROL YOUR DECISION-MAKING. You need to understand how every decision you make will impact your entire financial picture both now and in the future.
Contemplating divorce? If so, please contact our team for a complimentary consultation and a more informed divorce decision for you and your family.
Disclaimer: All articles/blog posts are for informational purposes only, and do not constitute legal advice. If you require legal advice, retain a lawyer licensed in your jurisdiction. The opinions expressed are solely those of the author, who is not an attorney.