Divorce is a life-altering event that impacts all aspects of one’s life, including finances. Navigating the financial aftermath of a divorce can be a daunting task, especially when emotions are running high. This is where professional advice becomes indispensable.
In this blog, we’ll delve into:
why seeking professional advice with your finances is crucial,
the common financial issues that arise during a divorce, and
the types of financial experts that can help you sail through this process smoothly.
Some of the most common financial issues that arise during a divorce include:
Property division. During your case, you (or the court) will need to determine what is marital property vs. separate property and how to divide such assets, which can be contentious.
Spousal support. Figuring out if spousal support is needed and how much should be paid can be complex.
Child support. Calculating child support involves considering several factors, including the income of both parents, the number of children, and the custody arrangement.
Retirement plans. Dividing retirement assets can be tricky due to the different rules associated with different types of retirement plans.
Tax implications. Divorce can have significant tax implications, including changes in filing status and potential tax liabilities related to alimony and child support payments.
Post-divorce budgeting. While spousal support and/or child support can help with post-divorce budget concerns, determining what you can afford post-divorce can be challenging.
Navigating these financial issues requires expertise in various fields.Here are some types of financial experts you might consider enlisting:
Accountants. Accountants, particularly those specializing in marital dissolution, can help navigate the financial aspects of divorce, like property division, maintenance, and child support. They can provide a clear picture of your financial situation, helping you understand your assets and liabilities.
Certified Divorce Financial Analysts (CDFAs). CDFAs are financial professionals who specialize in divorce cases. They utilize their knowledge of tax law, asset distribution, and financial planning to help couples arrive at a fair divorce settlement. CDFAs have a deep understanding of the unique financial issues in divorce and provide comprehensive financial expertise and analysis.
Financial planners. Financial planners can help you plan for your financial future post-divorce. They can guide you on how to manage your finances, taking into account your new circumstances. Financial planners can also assist in dividing retirement assets and planning for future financial security.
Forensic accountants. In high-net-worth divorce cases or when there’s suspicion of hidden assets, a forensic accountant can be invaluable. They use their expertise to investigate and analyze financial statements and documents, uncovering any discrepancies or hidden assets.
Investment managers. Investment managers can assist you in managing your investments post-divorce to ensure your financial security. They can provide advice on how to best manage and grow your wealth, considering the changes in your financial situation.
Tax advisors. Divorce can have significant tax implications. Tax advisors can guide you through these implications, helping you avoid potential pitfalls and understand potential tax liabilities related to alimony and child support payments.
During a divorce, couples often have to grapple with complex financial issues. Making informed decisions about these matters can make a significant difference in your financial well-being post-divorce.
While an experienced attorney can help you avoid certain pitfalls and make divorce-related decisions, a financial expert can:
provide the guidance you need to understand your financial situation,
explore different scenarios, and
make sound decisions that protect your financial future.
The legal team, at Dale L. Bernstein, Chartered Law Office, is not just professional; we are empathetic, understanding that each client’s circumstances are unique. We take the time to understand your situation, offering personalized advice tailored to your specific needs. Our dedication, professionalism, and commitment to our client’s best interests set us apart, making our team an excellent choice for those navigating divorces.
Our firm offers clients comprehensive divorce services. We can also provide clients with forensic account services to aid in valuations, uncover hidden assets, provide an informed opinion to the court on certain matters, or handle other case-related fiscal concerns.
Learn more about our divorce services by calling (727) 312-1112.