Dealing with the financial issues of divorce go far beyond a simple split. Along with the emotional stress that might influence your decision-making there are technical factors that need to be addressed; budgeting, retirement plans, division of property and debt, taxes, income, marital and child support to name a few.
The financial professional usually has earned the designation of CFP® or CPA and quite often continues their training in this specialized field by earning the CDFA™ (Certified Divorce Financial Analyst) designation.
The financial has a “neutral” role in the collaborative process, not as an advocate for one side but working with both spouses together to help them reach an agreement that is acceptable to both sides. To maintain the financial professionals ‘neutral status’ they are not allowed to provide any service outside of the scope of the divorce during or after the case is completed.
Working with the financial professional towards a mutually agreeable goal in an open discussion environment is expected to be more creative and productive rather than a confrontational setting.
The financial will work with the clients to determine the goals, expectations, and concerns of the clients, gather information and analyze the clients current cash flow, assets and liabilities. Budgets are created for each spouse and child for their current and possible future needs.
The division of property has a lot of moving pieces that require in-depth analysis. The financial works with the couple to understand possible tax issues, understanding the division of various types of retirement plans, retitling of assets, valuations-the more assets involved the more complex the division.
The financial will create cash flow, net worth statements and work with the clients and their attorneys to illustrate scenarios of possible settlement options. These reports will show the net financial impact of certain decisions and allow the clients to make a decision that focuses on satisfying the needs of each.
Investment advice offered through Mike Bonacorsi LLC a Registered Investment Advisor and separate entity from LPL Financial. Securities offered through LPL Financial, Member FINRA/SIPC. Mike Bonacorsi, LLC and LPL Financial do not provide legal advice or services. Please consult your legal advisor regarding your specific situation.