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The decision to divorce is one of the most significant decisions you will make in your lifetime. It has profound implications. It can affect your entire family (kids, parents, siblings, etc.) your friends, and where you live. It may affect your physical health, your mental health, and your career. It can also affect you financially.<\/p>\n
You\u2019ll want to seek advice and support from a variety of experts who can support you during this challenging transition. You should work with a family law attorney to understand and address the legal aspects of divorce. You might want to consult with a family counselor\/therapist to work through the personal and family issues associated with divorce. You may wish to seek the advice of a financial planner\/advisor (Certified Financial Planner\u2122, Chartered Financial Consultant\u00ae, or Certified Divorce Financial Analyst\u00ae) who can help you navigate the many financial ramifications of divorce.<\/p>\n
We are not attorneys and this guide is not designed to provide legal advice. We are also not licensed therapists, and, therefore, we are not trained to help you with the personal issues you will face. We are financial planners, and we hold the CFP\u00ae, ChFC\u00ae, and CDFA\u00ae credentials. We have decades of experience providing financial guidance and advice to women who are contemplating, going through, newly emerging from, and\/or living long after divorce. This guide is designed to help you prepare for, negotiate, avoid the mistakes of, and live beyond divorce.<\/p>\n
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Most of the biggest decisions we make in life have financial implications.\u00a0 Deciding where to go to college.\u00a0 Deciding on a career.\u00a0 Deciding where to live.\u00a0 Deciding whether or not to have children.\u00a0 All of these decisions impact you financially.\u00a0 However, none of them affects you as much as a\u00a0divorce<\/a><\/strong>.<\/p>\n Because women often delegate financial responsibility to their spouses, they are often not as familiar with their household finances.\u00a0 This means that they may not have thought about the financial impact of divorce on women.\u00a0 So, let\u2019s consider how you can\u00a0prepare financially<\/a><\/strong>\u00a0for divorce.<\/p>\n A good place to start is with spending.\u00a0 What are you spending to live currently?\u00a0 What will change if you divorce?\u00a0 Presumably, either you or your spouse will move to a different living environment.\u00a0 If you remain in your current home, will you be able to pay the associated costs (mortgage\/rent, taxes, insurance, utilities, maintenance)?\u00a0 If you decide to move, what are those costs likely to be?<\/p>\n What about health insurance?\u00a0 Are you on a plan that will continue after divorce?\u00a0 If not, how will you obtain coverage and what will it cost?\u00a0 Do you need life insurance?\u00a0 If so, how much and what kind and what will it cost?<\/p>\n Do you expect to receive alimony from your ex-spouse?\u00a0 How much and for how long?\u00a0 If you have children, what about child support?\u00a0 How much child support and for how long?\u00a0 What about paying for your children\u2019s education (e.g. private school, college, grad school)?<\/p>\n What financial assets (e.g. home, property, pensions, retirement accounts, investments, etc.) do you and your spouse own?\u00a0 What are the tax characteristics of these assets?\u00a0 How are they likely to be divided in a divorce?<\/p>\n If you have been out of the workforce, do you plan to return to work?\u00a0 Is returning to work an imperative?\u00a0 Do you have current skills, credentials, knowledge, and experience?\u00a0 If not, will you need to go back to school?\u00a0 How much would additional schooling or training cost?\u00a0 Once you are back at work, how much do you expect to earn?<\/p>\n As you might imagine, you will probably need advice as you think through these questions and prepare financially for divorce.\u00a0 You should talk to a family law attorney about all of the legal aspects of divorce.\u00a0 You should consult with a financial advisor (Certified Financial Planner\u2122, Chartered Financial Consultant\u00ae, or Certified Divorce Financial Analyst\u00ae) about the financial aspects.<\/p>\n Divorce can be a very difficult experience.\u00a0 You can minimize the financial impact by preparing and planning ahead.<\/p>\n If you have decided to divorce your spouse, there are several ways in which you can approach the process.\u00a0 If you and your spouse are on good terms and your situation can be simple (e.g., no kids, limited assets, no legal complexity, and good collaborative spirit with your partner), you might be able to \u201cdo it yourself.\u201d\u00a0 You would follow the laws in your county and state and complete the documents necessary to dissolve your marriage.<\/p>\n If your situation is more complex (kids, significant assets, legal complexity) and you and your spouse are on good terms as you discuss ending your marriage, then you might consider a collaborative approach.\u00a0 This process involves working with a team to negotiate an agreement to end your marriage.\u00a0 The team typically includes attorneys (one for you and one for your spouse), a divorce coach, a financial specialist (Certified Divorce Financial Analyst\u00ae), and, if you have children, a child specialist.\u00a0 The group will work together to achieve a dissolution agreement that will avoid litigation in court.<\/p>\n If you and your spouse are in dialogue, but struggling to come to terms on your divorce, you should consider mediation.\u00a0 This is true regardless of the complexity of your situation.\u00a0 In mediation, you and your spouse hire an attorney (or you each hire an attorney) to help you sort through and resolve the areas of conflict as you pursue the end of your marriage.\u00a0 The goal of mediation is to reach an agreement about the dissolution without going to court.<\/p>\n If you and your spouse are in unhealthy conflict and none of the other methods will work, then you will be forced to pursue a litigated dissolution.\u00a0 This is the least desirable approach, because it is contentious, unpleasant, public, and expensive.<\/p>\n What are the financial\u00a0issues<\/strong><\/a>\u00a0that are negotiated in the dissolution of a marriage?\u00a0 Alimony (i.e. payments by one spouse to the other for the support and maintenance of the other spouse) and child support (i.e. payments by one spouse to the other to care for children and keep them in the same general standard of living they experienced before the divorce) are the most common.<\/p>\n If you and your spouse have accumulated assets, you will need to decide how to divide them between the two of you.\u00a0 Your home is probably the most obvious shared asset.\u00a0 Who will live in it?\u00a0 Will it be sold?\u00a0 Is there a mortgage?\u00a0 How will you divide the value of it?<\/p>\n What about retirement assets?\u00a0 Do either of you have pensions, employer-sponsored retirement accounts (e.g. 401(k), 403(b), deferred compensation), IRAs, and Roth IRAs?\u00a0 What about employer stock and stock options?\u00a0 Remember that retirement assets are typically tax-deferred (i.e. the income tax due is deferred until distributed in retirement).\u00a0 That means that they are worth less than the stated value, because taxes will eventually be deducted from them.<\/p>\n How about other assets such as investment accounts, insurance contracts (cash value life insurance, annuities) loans to others, coin collections, intellectual property (patents, copyrights, trademarks), businesses, vehicles (cars, trucks, RVs, boats, etc.), timeshares, rental property, timeshares, raw land, collections, antiques, artwork, and household goods and furnishings?<\/p>\n Are there debts to others (e.g. credit cards, home equity loans, personal loans, unpaid taxes)?<\/p>\n How do you value your assets?\u00a0 In some cases, there is a ready market that provides current values (i.e. stock in a publicly traded company).\u00a0 However, in many cases, you will need a professional appraisal of the asset.\u00a0\u00a0 You may need multiple appraisals, if you and your spouse cannot agree on an initial appraisal.<\/p>\n Anything of any significant value will become part of the settlement process.\u00a0 Yes, there may be prior agreements between you and your spouse that segregate certain assets, but you will still need to come to an agreement about who gets what. Also, state law (e.g. community property law) may determine how assets are divided.<\/p>\n Your objective in the financial part of the settlement process should be to identify all assets (and liabilities), obtain proper fair market value for them and determine how you would like them divided between you and your spouse.\u00a0 You may need the help of an attorney, tax professional, a financial planner (Certified Financial Planner\u2122, Chartered Financial Consultant\u00ae, or\u00a0Certified Divorce Financial Analyst\u00ae<\/strong><\/a>, and appraiser(s).<\/p>\n If you are just emerging from divorce, you are probably trying to reassemble your life.\u00a0 You may have just travelled through one of the darkest chapters in your life.\u00a0 But you made it to the other side.\u00a0 Now let\u2019s look at how you can thrive financially after divorce.<\/p>\n The place to start to rebuild your financial life is, perhaps curiously, to take care of yourself.\u00a0 Focus on your health.\u00a0 Make sure your diet is nutritious.\u00a0 Exercise several times each week.\u00a0 Get plenty of sleep (7- hours).\u00a0 Keep alcohol consumption to a minimum.\u00a0 Don\u2019t smoke and avoid recreational drugs and other dangerous behavior.\u00a0 Surround yourself with positive, uplifting people.\u00a0 Practice your religion or meditate or do whatever you do to nurture your inner self.<\/p>\n Once you are feeling better about yourself, you can start thinking about your financial life.\u00a0 Start with an assessment.\u00a0 What are your assets and liabilities?\u00a0 These make up your balance sheet and the difference between the two of them is your net worth.\u00a0 What are your sources of income?\u00a0 Perhaps you are working or soon will be working.\u00a0 How much will you earn?\u00a0 Are you receiving alimony?\u00a0 How much and for how long?\u00a0 What about child support?\u00a0 Will you have other income from, say, rental property?<\/p>\n Now that you know how much income you will have coming in, let\u2019s consider your expenses.\u00a0 Do you know what you were spending before you got divorced?\u00a0 How will that change?\u00a0 Did you move?\u00a0\u00a0 What are your fixed costs for housing (mortgage\/rent, tax), utilities, insurances (personal, property, and casualty), cell phone, cable TV and internet, gym membership, groceries, transportation, entertainment, etc.?\u00a0 What about your variable expenses for vacations, home repair and maintenance (e.g. appliances), vehicle replacement?\u00a0 The more precise you are in identifying and projecting your expenses, the more confident you will be about your financial future.<\/p>\n Before we go any further, let\u2019s step back and acknowledge that you should be saving for any large future expenditures that are not in your core living expenses.\u00a0 That means saving for vacations, replacement vehicles, your children\u2019s education, and, above all, retirement.\u00a0 The best way to organize your finances is to save first and spend second.\u00a0 Most people spend first and save second, if there is anything left to save and too often there isn\u2019t.<\/p>\n What do you do if your income is not big enough to save the way you need to and spend the way you want to?\u00a0 Well, you will have to make some tough decisions.\u00a0 What\u2019s most important to you?\u00a0 Do you need to live in the house you shared with your ex-spouse?\u00a0 Do you need to take as many vacations?\u00a0 Can you trim your cable TV package?\u00a0 Could you change jobs and earn more?\u00a0 What about taking on a second part-time job?\u00a0\u00a0 Try to find ways to reduce your expenses and\/or increase your income, so that you can save what you need to save and spend what you want to spend, but saving is your priority so don\u2019t compromise it.<\/p>\n In the wake of a divorce, there are some other tasks you need to take in order to be financially secure.\u00a0 You should change the beneficiary designations on your retirement accounts, your insurance policies and your \u201ctransfer-on-death\u201d accounts.\u00a0 You should check in with the\u00a0Social Security<\/a><\/strong>\u00a0Administration and clarify your benefits.\u00a0 If you were married for ten or more years, you will qualify for benefits based on your ex-spouse\u2019s record and those benefits may be larger than your own. (You receive the larger of the two.)\u00a0 If there are mistakes in your earnings record, you can correct them.\u00a0 You should establish an emergency fund that contains enough cash to pay for a large, unexpected expense or pay your basic, fixed living expenses for 3-6 months if you become unemployed for some reason.\u00a0 You should update your\u00a0estate plan<\/strong><\/a>\u00a0(will, durable power of attorney, and health directive).<\/p>\n As you might imagine, to work through and accomplish these financial tasks, you may need assistance from a financial advisor (Certified Financial Planner\u2122, Chartered Financial Consultant\u00ae, or Certified Divorce Financial Analyst\u00ae), insurance agents, tax professional, and estate planning attorney.<\/p>\n The key to thriving financially after divorce is developing a sound plan and following it.<\/p>\n There are a lot of issues to consider as you go through a divorce.\u00a0 They fall into categories: legal,\u00a0financial<\/a><\/strong>, tax, and investment.\u00a0 Let\u2019s consider the issues and who can help you navigate them.<\/p>\n Unless you plan to execute your own divorce (i.e. do-it-yourself) in your legal jurisdiction (state and county), you will need to hire an attorney who can walk you through the process of dissolving your marriage.\u00a0 While most attorneys are capable of guiding you, we suggest you work with a family law attorney who focuses on divorce.\u00a0 You can find family law attorneys by searching on your state bar\u2019s website, asking other professionals for a referral, or doing a simple internet search.\u00a0 You should interview 2-3 and select the person who is most qualified and with whom you have the best personal rapport.<\/p>\n If you are likely to receive alimony from your ex-spouse, your divorce attorney will help you negotiate an amount and a payment period that is fair.\u00a0 If you have children and expect to receive child support, your attorney will also negotiate those payments.<\/p>\n Divorce results in a tangle of financial issues.\u00a0 What are the marital assets, what are they worth and how will they be divided?\u00a0 How much income will you have after your divorce?\u00a0 Will that be enough to support you?\u00a0 What will you do for insurance?\u00a0 How will you save for retirement?\u00a0 What will be your Social Security benefits?\u00a0 What happens if your ex dies and your alimony and child support end?<\/p>\n There are various financial advisors who can help you with the different financial issues you will encounter in your divorce.\u00a0 A financial advisor can help you with many aspects of\u00a0personal finance<\/a><\/strong>\u00a0<\/strong>(budgeting, insurance, taxes, estate planning, investments, education funding, retirement planning).\u00a0 Look for a fee only planner who does not sell financial products and earn commissions.\u00a0 The Certified Financial Planner\u2122 and Chartered Financial Consultant\u00ae credentials are the most respected credentials held by financial planners.\u00a0 If you feel you need particular expertise in the area of divorce financial planning, look for a\u00a0Certified Divorce Financial Analyst\u00ae<\/a><\/strong>.\u00a0 You can search for a CFP\u00ae at the\u00a0CFP Board website<\/strong><\/a>\u00a0and a CDFA\u00ae on the\u00a0Institute for Divorce Financial Analysts website<\/a><\/strong>. The American College awards the ChFC\u00ae designation, but there is no way to directly search for one on its website.<\/p>\n If you have difficult-to-value assets, you should hire an appraiser.\u00a0 The American Society of Appraisers confers\u00a0four appraisal credentials<\/a><\/strong>\u00a0<\/strong>related to the subject in need of appraising.\u00a0 There is a \u201cFind an appraiser\u201d tool on its\u00a0website<\/a><\/strong>.\u00a0\u00a0\u00a0 If you are trying to value a business, consider hiring an accountant with the Accredited Business Valuation (ABV) credential.\u00a0 There is a credential directory tool on the\u00a0AICPA website<\/a>.<\/strong><\/p>\n If you need tax-specific advice, work with a Certified Public Accountant (CPA) or an Enrolled Agent (EA).\u00a0 The state society of Certified Public Accountants will often have a tool on its website that allows a consumer to find a CPA.\u00a0 You can search for an enrolled agent on the National Association of Enrolled Agents\u00a0website<\/strong>.<\/p>\n What about insurance?\u00a0 If you need help with personal insurance including life insurance, disability insurance, annuities and long term care insurance, consider working with a Chartered Life Underwriter (CLU\u00ae).\u00a0 The American College bestows the CLU credential, but there is no search tool on its website to find a CLU.\u00a0 If you need help with health insurance, consider working with a Chartered Healthcare Consultant\u00ae (ChHC\u00ae), Registered Health Underwriter (RHU\u00ae) or Registered Employee Benefits Consultant (REBC\u00ae).\u00a0 All of these credentials are administered by the National Association of Health Underwriters, and there is a \u201cfind an agent\u201d tool on its\u00a0website<\/strong><\/a>.<\/p>\n If you need assistance with your investments, there are two credentials for which you should look.\u00a0 The Certified Financial Planner\u2122 (CFP\u00ae) and the Chartered Financial Analyst (CFA) designations.\u00a0 The latter can be found on the CFA Institute website on their\u00a0member directory<\/strong><\/a>.<\/p>\n You will need to update your estate plan. While most attorneys are capable of doing this, consider working with an estate planning attorney.\u00a0 These attorneys work more narrowly on estate planning matters.\u00a0 As with family law attorneys, you can find an estate planning attorney on your state bar\u2019s website.<\/p>\n For all of these professionals, you can, of course, ask for referrals from other friends, family members, and other professionals you know or conduct a search on the internet.\u00a0 It is always wise to interview 2-3 experts before selecting one to serve you.<\/p>\n Divorce is a complex process with many and varied financial consequences.\u00a0 Surround yourself with experts to avoid pitfalls and achieve the very best outcomes.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”3.22.3″ background_color=”#0060a5″ custom_padding=”14px|0px|0|0px|false|false” global_module=”4205″][et_pb_row column_structure=”1_3,1_3,1_3″ _builder_version=”3.25″ custom_padding=”27px|0px|27px|0px|false|false”][et_pb_column type=”1_3″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”PDX Office Address” _builder_version=”3.27.4″ text_font=”Montserrat||||||||” text_text_color=”#ffffff” z_index_tablet=”500″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px”]<\/p>\n OUR LOCATIONS<\/strong><\/p>\n Our Portland office is conveniently located off the SW Denney Road exit from Highway 217.<\/p>\n 6600 SW 105th Avenue, Suite 155 Our Bay Area office is located in downtown Santa Cruz.<\/p>\n 133 Mission Street [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Schedule Consultation” _builder_version=”3.27.4″ text_font=”Montserrat||||||||” text_text_color=”#ffffff”]<\/p>\n SCHEDULE A FREE CONSULTATION<\/strong><\/p>\n If you’d like to learn more about how we can help you build a solid plan for your future, let us know by filling out our contact form. Or give us a call at (888) 998-4796.<\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”3.27.4″ text_font=”Montserrat||||||||” text_text_color=”#ffffff”]<\/p>\n CONNECT WITH US<\/strong><\/p>\n Want to keep up with the latest news from Springwater? Follow us across our social networks.<\/p>\n [\/et_pb_text][et_pb_social_media_follow _builder_version=”4.2.2″][et_pb_social_media_follow_network social_network=”twitter” url=”https:\/\/twitter.com\/SpringwaterWM” _builder_version=”4.2.2″ background_color=”#00aced” follow_button=”off” url_new_window=”on”]Twitter[\/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”facebook” url=”https:\/\/www.facebook.com\/SpringwaterWealth\/” _builder_version=”4.2.2″ background_color=”#3b5998″ follow_button=”off” url_new_window=”on”]Facebook[\/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”linkedin” url=”https:\/\/www.linkedin.com\/company\/springwater-wealth-management\/” _builder_version=”4.2.2″ background_color=”#007bb6″ follow_button=”off” url_new_window=”on”]LinkedIn[\/et_pb_social_media_follow_network][\/et_pb_social_media_follow][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" A Woman\u2019s Guide to Financially Survive a DivorceThe decision to divorce is one of the most significant decisions you will make in your lifetime. It has profound implications. It can affect your entire family (kids, parents, siblings, etc.) your friends, and where you live. It may affect your physical health, your mental health, and your […]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":5362,"menu_order":3,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"The decision to divorce is one of the most significant decisions you will make in your lifetime. It has profound implications. It can affect your entire family (kids, parents, siblings, etc.) your friends, and where you live. It may affect your physical health, your mental health, and your career. It can also affect you financially.\r\n\r\nYou\u2019ll want to seek advice and support from a variety of experts who can support you during this challenging transition. You should work with a family law attorney to understand and address the legal aspects of divorce. You might want to consult with a family counselor\/therapist to work through the personal and family issues associated with divorce. You may wish to seek the advice of a financial planner\/advisor (Certified Financial Planner\u2122, Chartered Financial Consultant\u00ae, or Certified Divorce Financial Analyst\u00ae) who can help you navigate the many financial ramifications of divorce.\r\n\r\nWe are not attorneys and this guide is not designed to provide legal advice. We are also not licensed therapists, and, therefore, we are not trained to help you with the personal issues you will face. We are financial planners, and we hold the CFP\u00ae, ChFC\u00ae, and CDFA\u00ae credentials. We have decades of experience providing financial guidance and advice to women who are contemplating, going through, newly emerging from, and\/or living long after divorce. This guide is designed to help you prepare for, negotiate, avoid the mistakes of, and live beyond divorce.\r\n\r\n Table of Contents<\/strong>\r\nChapter 1: How Women Can Prepare Financially for Divorce<\/a>\r\nChapter 2: How Women Can Negotiate Financially in Divorce<\/a>\r\nChapter 3: How Women Can Thrive Financially After Divorce<\/a>\r\nChapter 4: Going through Divorce? -\u00a0 Surround yourself with Financial Experts<\/a>\r\n<\/p>\r\n<\/a>2: How Women Can Negotiate Financially in Divorce<\/h2>\n
<\/a>3: How Women Can Thrive Financially After Divorce<\/h2>\n
<\/a>4: Going through Divorce? –\u00a0 Surround yourself with Financial Experts<\/h2>\n
Beaverton, OR 97008<\/p>\n
Santa Cruz, CA 95060<\/p>\n
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\r\n1: How Women Can Prepare Financially for Divorce<\/h2><\/a>\r\nMost of the biggest decisions we make in life have financial implications.\u00a0 Deciding where to go to college.\u00a0 Deciding on a career.\u00a0 Deciding where to live.\u00a0 Deciding whether or not to have children.\u00a0 All of these decisions impact you financially.\u00a0 However, none of them affects you as much as a\u00a0divorce<\/a><\/strong>.\r\n\r\nBecause women often delegate financial responsibility to their spouses, they are often not as familiar with their household finances.\u00a0 This means that they may not have thought about the financial impact of divorce on women.\u00a0 So, let\u2019s consider how you can\u00a0prepare financially<\/a><\/strong>\u00a0for divorce.\r\n\r\nA good place to start is with spending.\u00a0 What are you spending to live currently?\u00a0 What will change if you divorce?\u00a0 Presumably, either you or your spouse will move to a different living environment.\u00a0 If you remain in your current home, will you be able to pay the associated costs (mortgage\/rent, taxes, insurance, utilities, maintenance)?\u00a0 If you decide to move, what are those costs likely to be?\r\n\r\nWhat about health insurance?\u00a0 Are you on a plan that will continue after divorce?\u00a0 If not, how will you obtain coverage and what will it cost?\u00a0 Do you need life insurance?\u00a0 If so, how much and what kind and what will it cost?\r\n\r\nDo you expect to receive alimony from your ex-spouse?\u00a0 How much and for how long?\u00a0 If you have children, what about child support?\u00a0 How much child support and for how long?\u00a0 What about paying for your children\u2019s education (e.g. private school, college, grad school)?\r\n\r\nWhat financial assets (e.g. home, property, pensions, retirement accounts, investments, etc.) do you and your spouse own?\u00a0 What are the tax characteristics of these assets?\u00a0 How are they likely to be divided in a divorce?\r\n\r\nIf you have been out of the workforce, do you plan to return to work?\u00a0 Is returning to work an imperative?\u00a0 Do you have current skills, credentials, knowledge, and experience?\u00a0 If not, will you need to go back to school?\u00a0 How much would additional schooling or training cost?\u00a0 Once you are back at work, how much do you expect to earn?\r\n\r\nAs you might imagine, you will probably need advice as you think through these questions and prepare financially for divorce.\u00a0 You should talk to a family law attorney about all of the legal aspects of divorce.\u00a0 You should consult with a financial advisor (Certified Financial Planner\u2122, Chartered Financial Consultant\u00ae, or Certified Divorce Financial Analyst\u00ae) about the financial aspects.\r\n\r\nDivorce can be a very difficult experience.\u00a0 You can minimize the financial impact by preparing and planning ahead.\r\n\r\n
\r\n2: How Women Can Negotiate Financially in Divorce<\/h2><\/a>\r\nIf you have decided to divorce your spouse, there are several ways in which you can approach the process.\u00a0 If you and your spouse are on good terms and your situation can be simple (e.g., no kids, limited assets, no legal complexity, and good collaborative spirit with your partner), you might be able to \u201cdo it yourself.\u201d\u00a0 You would follow the laws in your county and state and complete the documents necessary to dissolve your marriage.\r\n\r\nIf your situation is more complex (kids, significant assets, legal complexity) and you and your spouse are on good terms as you discuss ending your marriage, then you might consider a collaborative approach.\u00a0 This process involves working with a team to negotiate an agreement to end your marriage.\u00a0 The team typically includes attorneys (one for you and one for your spouse), a divorce coach, a financial specialist (Certified Divorce Financial Analyst\u00ae), and, if you have children, a child specialist.\u00a0 The group will work together to achieve a dissolution agreement that will avoid litigation in court.\r\n\r\nIf you and your spouse are in dialogue, but struggling to come to terms on your divorce, you should consider mediation.\u00a0 This is true regardless of the complexity of your situation.\u00a0 In mediation, you and your spouse hire an attorney (or you each hire an attorney) to help you sort through and resolve the areas of conflict as you pursue the end of your marriage.\u00a0 The goal of mediation is to reach an agreement about the dissolution without going to court.\r\n\r\nIf you and your spouse are in unhealthy conflict and none of the other methods will work, then you will be forced to pursue a litigated dissolution.\u00a0 This is the least desirable approach, because it is contentious, unpleasant, public, and expensive.\r\n\r\nWhat are the financial\u00a0issues<\/strong><\/a>\u00a0that are negotiated in the dissolution of a marriage?\u00a0 Alimony (i.e. payments by one spouse to the other for the support and maintenance of the other spouse) and child support (i.e. payments by one spouse to the other to care for children and keep them in the same general standard of living they experienced before the divorce) are the most common.\r\n\r\nIf you and your spouse have accumulated assets, you will need to decide how to divide them between the two of you.\u00a0 Your home is probably the most obvious shared asset.\u00a0 Who will live in it?\u00a0 Will it be sold?\u00a0 Is there a mortgage?\u00a0 How will you divide the value of it?\r\n\r\nWhat about retirement assets?\u00a0 Do either of you have pensions, employer-sponsored retirement accounts (e.g. 401(k), 403(b), deferred compensation), IRAs, and Roth IRAs?\u00a0 What about employer stock and stock options?\u00a0 Remember that retirement assets are typically tax-deferred (i.e. the income tax due is deferred until distributed in retirement).\u00a0 That means that they are worth less than the stated value, because taxes will eventually be deducted from them.\r\n\r\nHow about other assets such as investment accounts, insurance contracts (cash value life insurance, annuities) loans to others, coin collections, intellectual property (patents, copyrights, trademarks), businesses, vehicles (cars, trucks, RVs, boats, etc.), timeshares, rental property, timeshares, raw land, collections, antiques, artwork, and household goods and furnishings?\r\n\r\nAre there debts to others (e.g. credit cards, home equity loans, personal loans, unpaid taxes)?\r\n\r\nHow do you value your assets?\u00a0 In some cases, there is a ready market that provides current values (i.e. stock in a publicly traded company).\u00a0 However, in many cases, you will need a professional appraisal of the asset.\u00a0\u00a0 You may need multiple appraisals, if you and your spouse cannot agree on an initial appraisal.\r\n\r\nAnything of any significant value will become part of the settlement process.\u00a0 Yes, there may be prior agreements between you and your spouse that segregate certain assets, but you will still need to come to an agreement about who gets what. Also, state law (e.g. community property law) may determine how assets are divided.\r\n\r\nYour objective in the financial part of the settlement process should be to identify all assets (and liabilities), obtain proper fair market value for them and determine how you would like them divided between you and your spouse.\u00a0 You may need the help of an attorney, tax professional, a financial planner (Certified Financial Planner\u2122, Chartered Financial Consultant\u00ae, or\u00a0Certified Divorce Financial Analyst\u00ae<\/strong><\/a>), and appraiser(s).\r\n\r\n
\r\n3: How Women Can Thrive Financially After Divorce<\/h2><\/a>\r\nIf you are just emerging from divorce, you are probably trying to reassemble your life.\u00a0 You may have just travelled through one of the darkest chapters in your life.\u00a0 But you made it to the other side.\u00a0 Now let\u2019s look at how you can thrive financially after divorce.\r\n\r\nThe place to start to rebuild your financial life is, perhaps curiously, to take care of yourself.\u00a0 Focus on your health.\u00a0 Make sure your diet is nutritious.\u00a0 Exercise several times each week.\u00a0 Get plenty of sleep (7- hours).\u00a0 Keep alcohol consumption to a minimum.\u00a0 Don\u2019t smoke and avoid recreational drugs and other dangerous behavior.\u00a0 Surround yourself with positive, uplifting people.\u00a0 Practice your religion or meditate or do whatever you do to nurture your inner self.\r\n\r\nOnce you are feeling better about yourself, you can start thinking about your financial life.\u00a0 Start with an assessment.\u00a0 What are your assets and liabilities?\u00a0 These make up your balance sheet and the difference between the two of them is your net worth.\u00a0 What are your sources of income?\u00a0 Perhaps you are working or soon will be working.\u00a0 How much will you earn?\u00a0 Are you receiving alimony?\u00a0 How much and for how long?\u00a0 What about child support?\u00a0 Will you have other income from, say, rental property?\r\n\r\nNow that you know how much income you will have coming in, let\u2019s consider your expenses.\u00a0 Do you know what you were spending before you got divorced?\u00a0 How will that change?\u00a0 Did you move?\u00a0\u00a0 What are your fixed costs for housing (mortgage\/rent, tax), utilities, insurances (personal, property, and casualty), cell phone, cable TV and internet, gym membership, groceries, transportation, entertainment, etc.?\u00a0 What about your variable expenses for vacations, home repair and maintenance (e.g. appliances), vehicle replacement?\u00a0 The more precise you are in identifying and projecting your expenses, the more confident you will be about your financial future.\r\n\r\nBefore we go any further, let\u2019s step back and acknowledge that you should be saving for any large future expenditures that are not in your core living expenses.\u00a0 That means saving for vacations, replacement vehicles, your children\u2019s education, and, above all, retirement.\u00a0 The best way to organize your finances is to save first and spend second.\u00a0 Most people spend first and save second, if there is anything left to save and too often there isn\u2019t.\r\n\r\nWhat do you do if your income is not big enough to save the way you need to and spend the way you want to?\u00a0 Well, you will have to make some tough decisions.\u00a0 What\u2019s most important to you?\u00a0 Do you need to live in the house you shared with your ex-spouse?\u00a0 Do you need to take as many vacations?\u00a0 Can you trim your cable TV package?\u00a0 Could you change jobs and earn more?\u00a0 What about taking on a second part-time job?\u00a0\u00a0 Try to find ways to reduce your expenses and\/or increase your income, so that you can save what you need to save and spend what you want to spend, but saving is your priority so don\u2019t compromise it.\r\n\r\nIn the wake of a divorce, there are some other tasks you need to take in order to be financially secure.\u00a0 You should change the beneficiary designations on your retirement accounts, your insurance policies and your \u201ctransfer-on-death\u201d accounts.\u00a0 You should check in with the\u00a0Social Security<\/a><\/strong>\u00a0Administration and clarify your benefits.\u00a0 If you were married for ten or more years, you will qualify for benefits based on your ex-spouse\u2019s record and those benefits may be larger than your own. (You receive the larger of the two.)\u00a0 If there are mistakes in your earnings record, you can correct them.\u00a0 You should establish an emergency fund that contains enough cash to pay for a large, unexpected expense or pay your basic, fixed living expenses for 3-6 months if you become unemployed for some reason.\u00a0 You should update your\u00a0estate plan<\/strong><\/a>\u00a0(will, durable power of attorney, and health directive).\r\n\r\nAs you might imagine, to work through and accomplish these financial tasks, you may need assistance from a financial advisor (Certified Financial Planner\u2122, Chartered Financial Consultant\u00ae, or Certified Divorce Financial Analyst\u00ae), insurance agents, tax professional, and estate planning attorney.\r\n\r\nThe key to thriving financially after divorce is developing a sound plan and following it.\r\n\r\n
\r\n4: Going through Divorce? -\u00a0 Surround yourself with Financial Experts<\/h2><\/a>\r\nThere are a lot of issues to consider as you go through a divorce.\u00a0 They fall into categories: legal,\u00a0financial<\/a><\/strong>, tax, and investment.\u00a0 Let\u2019s consider the issues and who can help you navigate them.\r\n\r\nUnless you plan to execute your own divorce (i.e. do-it-yourself) in your legal jurisdiction (state and county), you will need to hire an attorney who can walk you through the process of dissolving your marriage.\u00a0 While most attorneys are capable of guiding you, we suggest you work with a family law attorney who focuses on divorce.\u00a0 You can find family law attorneys by searching on your state bar\u2019s website, asking other professionals for a referral, or doing a simple internet search.\u00a0 You should interview 2-3 and select the person who is most qualified and with whom you have the best personal rapport.\r\n\r\nIf you are likely to receive alimony from your ex-spouse, your divorce attorney will help you negotiate an amount and a payment period that is fair.\u00a0 If you have children and expect to receive child support, your attorney will also negotiate those payments.\r\n\r\nDivorce results in a tangle of financial issues.\u00a0 What are the marital assets, what are they worth and how will they be divided?\u00a0 How much income will you have after your divorce?\u00a0 Will that be enough to support you?\u00a0 What will you do for insurance?\u00a0 How will you save for retirement?\u00a0 What will be your Social Security benefits?\u00a0 What happens if your ex dies and your alimony and child support end?\r\n\r\nThere are various financial advisors who can help you with the different financial issues you will encounter in your divorce.\u00a0 A financial advisor can help you with many aspects of\u00a0personal finance<\/a><\/strong>\u00a0<\/strong>(budgeting, insurance, taxes, estate planning, investments, education funding, retirement planning).\u00a0 Look for a fee only planner who does not sell financial products and earn commissions.\u00a0 The Certified Financial Planner\u2122 and Chartered Financial Consultant\u00ae credentials are the most respected credentials held by financial planners.\u00a0 If you feel you need particular expertise in the area of divorce financial planning, look for a\u00a0Certified Divorce Financial Analyst\u00ae<\/a><\/strong>.\u00a0 You can search for a CFP\u00ae at the\u00a0CFP Board website<\/strong><\/a>\u00a0and a CDFA\u00ae on the\u00a0Institute for Divorce Financial Analysts website<\/a><\/strong>. The American College awards the ChFC\u00ae designation, but there is no way to directly search for one on its website.\r\n\r\nIf you have difficult-to-value assets, you should hire an appraiser.\u00a0 The American Society of Appraisers confers\u00a0four appraisal credentials<\/a><\/strong>\u00a0<\/strong>related to the subject in need of appraising.\u00a0 There is a \u201cFind an appraiser\u201d tool on its\u00a0website<\/a><\/strong>.\u00a0\u00a0\u00a0 If you are trying to value a business, consider hiring an accountant with the Accredited Business Valuation (ABV) credential.\u00a0 There is a credential directory tool on the\u00a0AICPA website<\/a>.<\/strong>\r\n\r\nIf you need tax-specific advice, work with a Certified Public Accountant (CPA) or an Enrolled Agent (EA).\u00a0 The state society of Certified Public Accountants will often have a tool on its website that allows a consumer to find a CPA.\u00a0 You can search for an enrolled agent on the National Association of Enrolled Agents\u00a0website<\/a><\/strong>.\r\n\r\nWhat about insurance?\u00a0 If you need help with personal insurance including life insurance, disability insurance, annuities and long term care insurance, consider working with a Chartered Life Underwriter (CLU\u00ae).\u00a0 The American College bestows the CLU credential, but there is no search tool on its website to find a CLU.\u00a0 If you need help with health insurance, consider working with a Chartered Healthcare Consultant\u00ae (ChHC\u00ae), Registered Health Underwriter (RHU\u00ae) or Registered Employee Benefits Consultant (REBC\u00ae).\u00a0 All of these credentials are administered by the National Association of Health Underwriters, and there is a \u201cfind an agent\u201d tool on its\u00a0website<\/strong><\/a>.\r\n\r\nIf you need assistance with your investments, there are two credentials for which you should look.\u00a0 The Certified Financial Planner\u2122 (CFP\u00ae) and the Chartered Financial Analyst (CFA) designations.\u00a0 The latter can be found on the CFA Institute website on their\u00a0member directory<\/strong><\/a>.\r\n\r\nYou will need to update your estate plan. While most attorneys are capable of doing this, consider working with an estate planning attorney.\u00a0 These attorneys work more narrowly on estate planning matters.\u00a0 As with family law attorneys, you can find an estate planning attorney on your state bar\u2019s website.\r\n\r\nFor all of these professionals, you can, of course, ask for referrals from other friends, family members, and other professionals you know or conduct a search on the internet.\u00a0 It is always wise to interview 2-3 experts before selecting one to serve you.\r\n\r\nDivorce is a complex process with many and varied financial consequences.\u00a0 Surround yourself with experts to avoid pitfalls and achieve the very best outcomes.","_et_gb_content_width":"","_mi_skip_tracking":false,"footnotes":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/pages\/5231"}],"collection":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/comments?post=5231"}],"version-history":[{"count":1,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/pages\/5231\/revisions"}],"predecessor-version":[{"id":8447,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/pages\/5231\/revisions\/8447"}],"up":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/pages\/5362"}],"wp:attachment":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/media?parent=5231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}