Divorce lawyers often broker such deals. But Christina George, wealth manager and partner at Northstar Financial Planning in Windham, New Hampshire, said the way they approach the couple’s wealth may differ from how financial planners view it. rice field. For example, keeping a house could “exchange assets” in an “apples-not-apples” way, George said.
George pointed out that one of the biggest changes that a divorce will bring is a change in how individuals are taxed. George said it’s important to have tax projections along with the divorce decree, as it can be confusing for women applying for head of household for the first time.
Without professional guidance, one ex-spouse could be in financial trouble. Stories of people who, after selling their family homes, were forced to relocate to other states to squeeze out the most of their now-few retirement savings as prices caught up with the gentrifying local housing market. There are many.
After the divorce, Stevenson switched from part-time to full-time work. That’s Karen D. Sparks’ move. Certified Divorce Financial Analyst In Santa Clara, Calif., she said many older women need retraining in career training, factoring that into their post-divorce budgets. But eventually Stevenson worked less hours and is now in debt, on a tight budget and unable to save.
Dawn Pick Benson, 50, is a copywriter and travel coach Lives in Grand Rapids, Michigan. When she filed for divorce from her husband of 18 years in 2018, she negotiated a split between a house, a yacht, two cars, joint savings and checking accounts, personal savings and retirement. I had a lawyer ready. Benson’s severance pay was less. But she had no idea what split would make sense in the long run, or what trouble she might run into if she chose the wrong lawyer. In a panic, she contacted Liza Caldwell, the co-founder of Her. SAS for womenorganizations that provide divorce coaching and other educational resources.
Ms. Caldwell recommended a certified divorce financial analyst, who told Mr. Benson to keep the house because he could rent it when he traveled to pay off the mortgage. This meant giving up the rest of her shared assets (saving one of her cars) as well as her ex-husband’s personal savings and her retirement savings. She also paid him a small cash adjustment to divide the value of all her assets equally. But Benson, who is childless and has at least 15 years until retirement, has time to bounce back. She said that this experience made her feel that she was not on her own.
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Hiring a financial expert could strain budgets already depleted in paying divorce lawyers and mediators. Alison Borrell, 49, her San Diego substitute teacher, filed for divorce last August, but she feels professional help won’t reach her until she’s saved enough money. . She also waits to tap into her group of countless online financial supports to better educate herself. Stevenson has attended several divorce webinars hosted by financial planners, most of which are free. They helped coordinate her spending and create a detailed budget proposal to help her plan for emergencies.
