Divorce Planning

DIVORCE PLANNING:

Divorce is a particularly difficult and tumultuous time when you are forced to make decisions which have long term implications.  At Resurgent Wealth Management, we work with you and your other advisors to sort through the financial issues related to divorce and provide you with information and guidance that allow you to make informed decisions that are in your best interest.  Every divorce is different so we customize our approach to fit your unique set of circumstances.  As your Certified Divorce Financial Analyst (CDFA), we are a part of your divorce team and can provide direction and support on a broad range of pre and post divorce issues.

Divorce is a multi-step process and a CDFA is the best resource to navigate each step along the way.

PRE DIVORCE FINANCIAL REVIEW

  • compile financial data
  • value assets
  • estimate short term needs
  • prepare financial affidavit and statement of net worth
  • develop budget

LONG TERM PLANNING

  • identify and prioritize financial goals
  • estimate earnings potential and timeline
  • estimate education expense
  • project retirement needs
  • assess current and future insurance needs
  • evaluate long term expenses

DIVORCE SETTLEMENT ANALYSIS

  • review after tax proposed settlement
  • estimate ongoing maintenance needs
  • evaluate cash flow and net worth
  • evaluate proposed settlement
  • develop alternate proposal settlements

POST DIVORCE

  • oversee asset transfers
  • create and set up new budget system
  • propose and manage investments
  • monitor investment results relative to goals
  • update plan as needed

COMMON FINANCIAL MISTAKES IN A DIVORCE

  • negotiating to retain marital home when the party cannot afford it
  • obtaining incomplete information on retirement plans, employee benefits and stock options
  • not evaluating defined benefit plans correctly
  • not understanding the various division methods of retirement assets
  • not understanding the purpose and need of a QDRO and when to get it filed
  • not fully evaluating the long term impact of a financial settlement
  • failure to adequately factor in inflation and investment returns to financial settlements
  • not protecting spousal and child support with life insurance
  • making isolated financial decisions as opposed to looking at the big picture
  • failure to understand the tax implications of alimony vs child support
  • assuming that an equal division is a fair division of property
  • not understanding division of stock options
  • not using a financial advisor
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