[et_pb_section fb_built=”1″ _builder_version=”3.22″][et_pb_row _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.2.2″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″]<\/p>\n
Financial difficulties can irreparably damage a marriage, and they\u2019re often the primary trigger for a divorce.<\/p>\n
Once a couple decides to separate or divorce, many questions will arise.\u00a0 Unfortunately, if a couple was unable to solve their financial problems while married, it\u2019s unlikely that they\u2019ll be able to do so when their relationship has ended.\u00a0 This is why working with a Certified Divorce Financial Analyst\u00ae<\/a><\/strong> (CDFA\u00ae) can help you financially survive a divorce.<\/p>\n The first stop for people who have decided to separate or divorce is a lawyer.\u00a0 Unfortunately, many lawyers are not familiar with the complex and intricate financial details surrounding dividing pensions, projecting future investment risks and returns and so on.\u00a0 Lawyers are legal experts, not financial professionals.<\/p>\n A CDFA\u00ae, in contrast, is a financial, legal, or accounting professional who has undertaken an intensive training program to develop the skills and expertise needed to provide guidance related to the financial aspects of divorce.<\/p>\n Let\u2019s look at just a few of the important ways.<\/p>\n A CDFA\u00ae can either work just for you, to provide you with objective advice that\u2019s in your best interest, or as a so-called \u201cthird party neutral,\u201d advising both you and your ex-spouse on the financial aspects of your divorce settlement.\u00a0 In either case, the CDFA\u00ae professional will bring a level of expertise to the negotiations that an attorney probably won\u2019t have.<\/p>\n Having financial expertise in your team can help ensure that both parties understand the serious implications of decisions made around your pre- and post-divorce finances.<\/p>\n During divorce negotiations, it\u2019s common for spouses to negotiate the division of marital property. This is normal, and it\u2019s part of reaching a fair settlement. It\u2019s important to note that this doesn\u2019t necessarily mean an equal division \u2013 a settlement can be fair (or \u201cequitable\u201d) without being equal.<\/p>\n As you prepare for this process, you\u2019ll want to keep in mind that what matters is not just which assets you want to keep, but which assets will be best for your long-term financial security.\u00a0 For example, you may want to keep your marital home after the divorce so that you can provide your children with a sense of stability and security but doing so may not be in your best interest financially.\u00a0 Working with your CDFA\u00ae professional to understand the short and long-term implications of different asset division proposals can help you avoid financial mistakes during your divorce.<\/p>\n <\/p>\n If you\u2019re contemplating getting divorced, or are already in the process, you\u2019ll want to have a very thorough understanding of your finances.\u00a0 The harsh reality for most people post-divorce is that their lifestyle isn\u2019t what it was when they were married. This is because the same income level now needs to support two households rather than just one.<\/p>\n Depending on the length of your marriage (and other factors), you may be entitled to receive spousal support after your divorce; if you have children, then child support may also be involved.\u00a0 If you\u2019ve never prepared a budget before, it can seem like a daunting task. While it\u2019s not complicated, it can take some time to get together a comprehensive overview of what your total spending will look like.\u00a0 Your CDFA\u00ae professional can help you prepare an accurate budget for your post-divorce life, taking into account not only your core living expenses, but also financial commitments like education and other costs for your minor or adult children, support for ageing parents, etc.<\/p>\n By helping you gain a thorough understanding of your new cash flow needs, and creating a detailed, comprehensive budget, your CDFA\u00ae professional can ensure that you don\u2019t underestimate your income need, and avoid a financial mistake during your divorce.<\/p>\n When compared with the emotional stress that a divorce can create, insurance matters may seem insignificant.\u00a0 But insuring against certain risks is critical to securing your financial well being and that of your loved ones.<\/p>\n Your divorce settlement<\/a><\/strong> may require that your ex-spouse carry a life insurance policy naming you as the beneficiary.\u00a0 This arrangement will ensure that if your ex passes away the life insurance death benefit can replace alimony or child support payments.<\/p>\n Disability insurance is arguably more important that life insurance, because you or your ex-spouse are much more likely to become disabled than you are to die prematurely.\u00a0 If you earn an income, you\u2019ll want to have your own employer-provided or private disability insurance policy. If you\u2019re entitled to receive alimony or child support, you\u2019ll want to make sure that your settlement agreement requires your ex-spouse to carry adequate coverage.<\/p>\n You can keep your health insurance after you\u2019re divorced if you have your own coverage. But, depending on your state\u2019s law and the type of health plan, you may not be eligible as a dependent on your ex-spouse\u2019s employer-sponsored health plan once your divorce is final.<\/p>\n Insurance matters can be complicated in the best of times, let alone when you divorce.\u00a0 Your CDFA\u00ae professional can help you evaluate the coverage you need, so that you avoid a financial mistake during your divorce.<\/p>\n The emotions and stress that accompany a divorce can make it difficult to focus on anything other than getting through the next day or two, but the decisions you make during the settlement process can have a profound effect on your financial future, including the security of your retirement<\/a><\/strong>.\u00a0 For example, you may be tempted to opt for a lump sum payment rather than a share of your ex-spouse\u2019s defined benefit pension, because you see a long list of expenses in your short-term financial future, but depending on a variety of factors, choosing instead to take a share of a pension may be far more attractive for you long-term.<\/p>\n Similarly, your CDFA\u00ae professional can help understand the tax consequences of accepting taxable assets versus retirement assets in your settlement negotiations.\u00a0 While accessing retirement account dollars too early can have tax consequences, the benefits of tax-deferred growth over what may be decades before your retirement can make these accounts very attractive.<\/p>\n Planning for your retirement, including when you plan to stop working and how much income you\u2019ll need when you do, can ensure that you\u2019ll enjoy financial security later in life.\u00a0 Your CDFA\u00ae professional can help you determine what you\u2019d like your financial future will look like, and help you avoid a financial mistake during your divorce.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Financial difficulties can irreparably damage a marriage, and they\u2019re often the primary trigger for a divorce. Once a couple decides to separate or divorce, many questions will arise.\u00a0 Unfortunately, if a couple was unable to solve their financial problems while married, it\u2019s unlikely that they\u2019ll be able to do so when their relationship has ended.\u00a0 […]<\/p>\n","protected":false},"author":2,"featured_media":3840,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"Financial difficulties can irreparably damage a marriage, and they\u2019re often the primary trigger for a divorce.\r\n\r\nOnce a couple decides to separate or divorce, many questions will arise.\u00a0 Unfortunately, if a couple was unable to solve their financial problems while married, it\u2019s unlikely that they\u2019ll be able to do so when their relationship has ended.\u00a0 This is why working with a Certified Divorce Financial Analyst\u00ae<\/a><\/strong> (CDFA\u00ae) can help you financially survive a divorce.\r\nWhat is a CDFA\u00ae?<\/h2>\n
A CDFA\u00ae is a Part of Your Divorce Team<\/h2>\n
Equitably Dividing Assets<\/h2>\n
Need guidance\u00a0financially preparing for or navigating a divorce?\u00a0 Contact our team at Springwater Wealth today to learn how\u00a0<\/a>we can help.<\/strong><\/span><\/h2>\n
Determining Your Income Needs<\/h2>\n
Evaluating Your Insurance Needs<\/h2>\n
Planning for Your Retirement<\/h2>\n
What is a CDFA\u00ae?<\/h2>\r\nThe first stop for people who have decided to separate or divorce is a lawyer.\u00a0 Unfortunately, many lawyers are not familiar with the complex and intricate financial details surrounding dividing pensions, projecting future investment risks and returns and so on.\u00a0 Lawyers are legal experts, not financial professionals.\r\n\r\nA CDFA\u00ae, in contrast, is a financial, legal, or accounting professional who has undertaken an intensive training program to develop the skills and expertise needed to provide guidance related to the financial aspects of divorce.\r\n\r\nLet\u2019s look at just a few of the important ways.\r\n
A CDFA\u00ae is a Part of Your Divorce Team<\/h2>\r\nA CDFA\u00ae can either work just for you, to provide you with objective advice that\u2019s in your best interest, or as a so-called \u201cthird party neutral,\u201d advising both you and your ex-spouse on the financial aspects of your divorce settlement.\u00a0 In either case, the CDFA\u00ae professional will bring a level of expertise to the negotiations that an attorney probably won\u2019t have.\r\n\r\nHaving financial expertise in your team can help ensure that both parties understand the serious implications of decisions made around your pre- and post-divorce finances.\r\n
Equitably Dividing Assets<\/h2>\r\nDuring divorce negotiations, it\u2019s common for spouses to negotiate the division of marital property. This is normal, and it\u2019s part of reaching a fair settlement. It\u2019s important to note that this doesn\u2019t necessarily mean an equal division \u2013 a settlement can be fair (or \u201cequitable\u201d) without being equal.\r\n\r\nAs you prepare for this process, you\u2019ll want to keep in mind that what matters is not just which assets you want to keep, but which assets will be best for your long-term financial security.\u00a0 For example, you may want to keep your marital home after the divorce so that you can provide your children with a sense of stability and security but doing so may not be in your best interest financially.\u00a0 Working with your CDFA\u00ae professional to understand the short and long-term implications of different asset division proposals can help you avoid financial mistakes during your divorce.\r\n
Need guidance\u00a0financially preparing for or navigating a divorce?\u00a0 Contact our team at Springwater Wealth today to learn how\u00a0<\/a>we can help.<\/strong><\/span><\/h2>\r\n\u00a0\r\n
Determining Your Income Needs<\/h2>\r\nIf you\u2019re contemplating getting divorced, or are already in the process, you\u2019ll want to have a very thorough understanding of your finances.\u00a0 The harsh reality for most people post-divorce is that their lifestyle isn\u2019t what it was when they were married. This is because the same income level now needs to support two households rather than just one.\r\n\r\nDepending on the length of your marriage (and other factors), you may be entitled to receive spousal support after your divorce; if you have children, then child support may also be involved.\u00a0 If you\u2019ve never prepared a budget before, it can seem like a daunting task. While it\u2019s not complicated, it can take some time to get together a comprehensive overview of what your total spending will look like.\u00a0 Your CDFA\u00ae professional can help you prepare an accurate budget for your post-divorce life, taking into account not only your core living expenses, but also financial commitments like education and other costs for your minor or adult children, support for ageing parents, etc.\r\n\r\nBy helping you gain a thorough understanding of your new cash flow needs, and creating a detailed, comprehensive budget, your CDFA\u00ae professional can ensure that you don\u2019t underestimate your income need, and avoid a financial mistake during your divorce.\r\n
Evaluating Your Insurance Needs<\/h2>\r\nWhen compared with the emotional stress that a divorce can create, insurance matters may seem insignificant.\u00a0 But insuring against certain risks is critical to securing your financial well being and that of your loved ones.\r\n\r\nYour divorce settlement<\/a><\/strong> may require that your ex-spouse carry a life insurance policy naming you as the beneficiary.\u00a0 This arrangement will ensure that if your ex passes away the life insurance death benefit can replace alimony or child support payments.\r\n\r\nDisability insurance is arguably more important that life insurance, because you or your ex-spouse are much more likely to become disabled than you are to die prematurely.\u00a0 If you earn an income, you\u2019ll want to have your own employer-provided or private disability insurance policy. If you\u2019re entitled to receive alimony or child support, you\u2019ll want to make sure that your settlement agreement requires your ex-spouse to carry adequate coverage.\r\n\r\nYou can keep your health insurance after you\u2019re divorced if you have your own coverage. But, depending on your state\u2019s law and the type of health plan, you may not be eligible as a dependent on your ex-spouse\u2019s employer-sponsored health plan once your divorce is final.\r\n\r\nInsurance matters can be complicated in the best of times, let alone when you divorce.\u00a0 Your CDFA\u00ae professional can help you evaluate the coverage you need, so that you avoid a financial mistake during your divorce.\r\n
Planning for Your Retirement<\/h2>\r\nThe emotions and stress that accompany a divorce can make it difficult to focus on anything other than getting through the next day or two, but the decisions you make during the settlement process can have a profound effect on your financial future, including the security of your retirement<\/a><\/strong>.\u00a0 For example, you may be tempted to opt for a lump sum payment rather than a share of your ex-spouse\u2019s defined benefit pension, because you see a long list of expenses in your short-term financial future, but depending on a variety of factors, choosing instead to take a share of a pension may be far more attractive for you long-term.\r\n\r\nSimilarly, your CDFA\u00ae professional can help understand the tax consequences of accepting taxable assets versus retirement assets in your settlement negotiations.\u00a0 While accessing retirement account dollars too early can have tax consequences, the benefits of tax-deferred growth over what may be decades before your retirement can make these accounts very attractive.\r\n\r\nPlanning for your retirement, including when you plan to stop working and how much income you\u2019ll need when you do, can ensure that you\u2019ll enjoy financial security later in life.\u00a0 Your CDFA\u00ae professional can help you determine what you\u2019d like your financial future will look like, and help you avoid a financial mistake during your divorce.","_et_gb_content_width":"","_mi_skip_tracking":false,"footnotes":""},"categories":[150,3,6],"tags":[29,49,154,151],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/posts\/3830"}],"collection":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/types\/post"}],"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=3830"}],"version-history":[{"count":0,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/posts\/3830\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/media\/3840"}],"wp:attachment":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/media?parent=3830"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/categories?post=3830"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/tags?post=3830"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}