How To Plan for Divorce: 5 First Steps - Adviser Investments

How To Plan for Divorce: 5 First Steps

How can you prepare for divorce? It can be logistically and emotionally overwhelming, but Wealth Adviser Diana Linn, a Certified Divorce Financial Analyst® professional, has advice to help make a difficult situation easier, with five important first financial steps for divorce.

Divorce planning isn’t the cheeriest way to ring in the new year, but it’s important to think about the financial aspects of the transition as soon as possible. In fact, the majority of couples who file for divorce do so between January and March. 

After you make the decision to divorce, some of your first calls should be to trusted professionals, including a lawyer and financial adviser. Here are a few things the wealth management team at Adviser can help you do right away for divorce planning:

Get organized. Gather all the documents your lawyer or certified divorce financial analyst (CDFA®) might need, including a list of all your assets and debts, Social Security statements, paystubs and all employee benefit information (W-2s, 1099s, and anticipated raises or bonuses expected for you or your spouse). You will also need a copy of all financial statements, the past three years of income tax returns, up-to-date credit card statements and insurance information.

Calculate your (and your spouse’s) expenses. We can help you create a comprehensive breakdown of debt and spending, both individual and joint, on a monthly and annual basis. You and your partner must complete this process separately, as your respective lawyers will need it as part of the financial affidavit process.

Plan for property. If you are a homeowner, have your properties appraised. Make sure you have the original date of purchase, the purchase price, a tally of home improvements, and the original mortgage amount as well as the remaining balance. All this information will be crucial in deciding if one partner will maintain ownership of properties or if you will sell them and divide the proceeds.

Consider dependent accounts. Gather all information on dependents’ savings accounts, 529 plans and UTMA accounts (Uniform Transfers to Minors Act). Research the guidelines for determining child support in your state—the noncustodial parent is usually ordered to pay child support, and each state has its own rules and tables.

Know your account numbers. Make sure you have access to account logins and passwords. Know when bills are due and keep tabs on everything from credit cards and cryptocurrency wallets to airline rewards points.

Divorce can be a stressful and lengthy process. Make sure you have the right people in your corner: Friends, family and professionals. If you have questions, call us. Our team has the experience to offer you the support you need through this life change.

If you have questions for Diana or the Adviser team, please send them to info@adviserinvestments.com.

Divorce planning isn't the cheeriest way to ring in the new year, but it’s important to think about the financial aspects of the transition as soon as possible. After you make the decision to divorce, some of your first calls should be to trusted professionals, including a lawyer and financial adviser.

Divorce Planning Episode Transcript

Diana Linn:

Did you know that the majority of couples who file for divorce do so during the months of January through March and while divorce planning may not be the happiest way to bring in the new year, it is an important one, especially if you fall within this category. Today, let’s discuss five important first steps to take. If you are considering divorce, Hi I’m Diana Linn, a Wealth Adviser and a Certified Divorce Financial Analyst with Today’s Adviser Takeaway.

The first thing you’re gonna wanna do is to get organized, gather all of your documents that your lawyer or your CDFA professional might need – things such as a list of all of your assets and debts, social security statements, pay stubs, all employee information, all of your benefits. Things like your W2’s, your 1099’s and anticipated raises or bonuses expected by either yourself or your spouse. You will also need a copy of all your financial statements past three years of income tax returns, credit card statements and insurance information.

Next in divorce planning, you’re going to want to create a detailed breakdown of expenses, both individual and joint on a month to month and annual basis. Have each partner complete this process separately as each of your lawyers will need it for the financial affidavits.

Third, if you’re a homeowner, have the property appraised, make sure you know the original date of purchase, purchase price, have a tally of all the home improvements that you made, the original mortgage amount and the remaining balance. All of this information becomes critical in deciding if you want to keep the marital home sell it or which partner is gonna maintain ownership.

Fourth, if you have kids gather all of their account information, Savings accounts, 529 plans, you’re the beneficiary of or UTMA’s Research the guidelines for determining child support in your state. Typically, the noncustodial parent is required to pay child support and each state has different set of rules and tables.

The fifth important step to make is to make sure you have access to everything. Often in a marriage, one partner will handle more of the finances and expenses. Make sure you have all account login information and passwords. Know when bills are due and keep tabs on credit card, rewards, points and airline miles. Divorce can be stressful and a lengthy process.

Make sure you have the right people in your corner, friends, family and professional. If you have questions call us, we can also help with the financial aspect of it. And those are five important first steps to take if you are considering a divorce in Today’s Adviser Takeaway. Thanks so much for listening.


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