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Financial Planning for Divorce
We offer the experience and expertise you need to navigate this challenging time financially.
Financial stability is a top concern among people who divorce. However, a lot of people do not use a financial advisor when going through a divorce despite having financial goals they want to achieve. We understand the financial consequences a divorce can bring. With the effects lasting years – even decades – why are some people not seeking financial advice from an expert?
The biggest problem is a lack of awareness. Most people don’t know how a financial advisor can benefit them early in the divorce process.
How SMC Can Help
SMC can help you think through your lifestyle to gain a better understanding of your expenses both before and after a divorce. This is especially important for a partner who hasn’t been involved in paying the bills, managing investments, buying insurance, or budgeting.
Financial advisors can also help you uncover critical financial assets that might not be on your radar. These hidden gems are crucial for making sure you get your fair share in a divorce. A few big-ticket items you may not have thought about include the following:
- The marital home
- Engagement and wedding rings
- Fine jewelry
- Heirlooms and antiques
- Bank and retirement accounts
- College savings accounts
Assets to Consider
Bank accounts, retirement savings, and college savings accounts can be substantial financial assets. Often, one partner may be managing these, and it’s important for both parties to understand scope and value during a divorce.
The marital home is an important consideration. Not only is there often valuable equity in a house, but you and your children, if you have any, will need a place to live after the divorce. If you can’t qualify to refinance the mortgage in your name or can’t afford to buy out your spouse’s share of the equity, there may be no choice but to sell it.
In most states, an engagement ring is not considered a marital asset because it is a gift that is received before the marriage. This means that women will keep their rings as separate property, even in divorce.
Closely held small businesses can be especially difficult to navigate during a divorce. What may have been a joint venture is now a complicated asset to understand when looking toward the future and planning for both parties financial sustainability. SMC is here to help de-mystify the process and guide you into a strong financial outcome.
The Life Ahead
When it comes to financial goals that people have for the future:
- 66% hope to pay off debt
- 41% want to save for a comfortable retirement
- 38% would like to have an emergency fund
- 27% aspire to purchase a new home
- 20% are striving to create new streams of income
- 19% are hoping to build their wealth through investments
While it’s clear people who divorce have financial goals, many don’t have a clear path on how to achieve them. Financial advisors can play a significant role when dividing marital assets during the divorce process. SMC can put you in the best position possible to help you achieve your financial goals post-divorce.