California Divorce Financial Expert Tips: Secure Long-Term Financial Security
A well-planned fair asset and property division settlement requires preparation, intention and care. This negotiation can mean the difference between long-term financial stability and setbacks after the divorce process is complete.
This month, we turn to our friend and colleague Laurie Itkin, Certified Divorce Financial Analyst (CDFA), to shed light on some of the most pressing financial concerns during divorce. Continue below to get Laurie’s guidance on three vital issues related to making informed decisions, protecting your financial future, and setting yourself up for lasting success.
𝟭) 𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗰𝗼𝗺𝗺𝗼𝗻 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗺𝗶𝘀𝘁𝗮𝗸𝗲s during d𝗶𝘃𝗼𝗿𝗰𝗲, 𝗮𝗻𝗱 𝗵𝗼𝘄 𝗰𝗮𝗻 𝗺𝗲𝗱𝗶𝗮𝘁𝗶𝗼𝗻 𝗵𝗲𝗹𝗽 𝘁𝗵𝗲𝗺 𝗮𝘃𝗼𝗶𝗱 𝗰𝗼𝘀𝘁𝗹𝘆 𝗺𝗶𝘀𝘀𝘁𝗲𝗽𝘀?
The biggest financial mistake is spending more money on your divorce than you need to spend. Any money you can save on the divorce process itself can be used to fund your child’s college education or your future retirement. My clients who hire attorneys to represent them through the traditional, litigated court process spend much more money than my mediation clients. This is because they may incur fees for discovery, depositions, court appearances, expert witnesses, and trial preparation. The majority of my clients divorce using a mediator for which they share the cost. The money saved by using a mediator and staying out of court can be invested towards professionals such as a certified divorce financial analyst (CDFA), divorce coach, or consulting attorney with a specialty in family law.
𝟮) 𝗪𝗵𝗮𝘁 𝘀𝘁𝗲𝗽𝘀 𝗰𝗮𝗻 𝗶𝗻𝗱𝗶𝘃𝗶𝗱𝘂𝗮𝗹𝘀 𝘁𝗮𝗸𝗲 𝘁𝗼 𝗽𝗿𝗲𝗽𝗮𝗿𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹𝗹𝘆 𝗯𝗲𝗳𝗼𝗿𝗲 𝗲𝗻𝘁𝗲𝗿𝗶𝗻𝗴 𝗱𝗶𝘃𝗼𝗿𝗰𝗲 𝗺𝗲𝗱𝗶𝗮𝘁𝗶𝗼𝗻 𝘁𝗼 𝗲𝗻𝘀𝘂𝗿𝗲 𝗮 𝘀𝗺𝗼𝗼𝘁𝗵𝗲𝗿 𝗽𝗿𝗼𝗰𝗲𝘀𝘀?
“Divorce math” isn’t always logical or fair. The number one thing you can do to prepare financially is work with a CDFA to get educated on the finances of divorce. On the most basic level this means you need to gather the correct information about your assets, debts, income and expenses. On a deeper level you may need to identify community vs. separate property or understand what financial variables impact child and spousal support. After completing an assessment of your financial picture, a CDFA can refer you to a family law attorney for financial issues that require legal advice.Whether you work with a CDFA as your advocate, or you and your spouse hire a CDFA as a neutral financial expert, you can expect to gain insight as to how various settlement options will impact your financial future. You aren’t just negotiating for today — you are also negotiating for tomorrow.
𝟯) 𝗔𝗳𝘁𝗲𝗿 𝗮 𝗱𝗶𝘃𝗼𝗿𝗰𝗲 𝗶𝘀 𝗳𝗶𝗻𝗮𝗹𝗶𝘇𝗲𝗱, 𝘄𝗵𝗮𝘁 𝗸𝗲𝘆 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗮𝗰𝘁𝗶𝗼𝗻𝘀 𝘀𝗵𝗼𝘂𝗹𝗱 𝘀𝗼𝗺𝗲𝗼𝗻𝗲 𝘁𝗮𝗸𝗲 𝘁𝗼 𝗿𝗲𝗯𝘂𝗶𝗹𝗱 𝘀𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝗻𝗱 𝘀𝗲𝗰𝘂𝗿𝗲 𝘁𝗵𝗲𝗶𝗿 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗳𝘂𝘁𝘂𝗿𝗲?
Once the marital settlement agreement is signed, I recommend you share a copy with a CDFA and book a meeting to discuss what needs to happen next. Accounts may need to be transferred, budgets may need to be revised, and child and/or spousal support true-ups may need to be calculated. Also consider obtaining assistance in developing a financial plan so you can make smart choices and minimize the chance of outliving your money.
Other articles featuring Laurie Itkin and Scott Levin:
Contact Laurie Itkin:
www.TheOptionsLady.com
858-220-4736
laurie@theoptionslady.com
