Financial considerations for divorce

Financial Considerations for Divorce

By Lis McNealey Davies, CDFA®
Owner, Financial Advisor

Preparing for the financial impacts of divorce can often be overwhelming, but with the help of skilled professionals you can plan ahead and know what to expect. Financial advisors make important partners throughout the process. Here are some of the items they may help you review.

Planning for Your New Budget
Having a strong knowledge of your income sources pre- and post-divorce as well as knowledge of your expenses will help you plan ahead to help manage short-term and long-term goals.

Spousal Support & Child Support
Typically, spouses with less income or less earning potential may be eligible for spousal support (alimony) but each situation is unique. Your attorney can help determine what you may be eligible for in terms of spousal support and then a Financial Advisor can help guide you on how that potential income helps with your financial goals moving forward post divorce.

Other Assets & Considerations
There are many other financial factors that need to be considered in divorce, such as which spouse will pay for the minor children’s expenses and health insurance, who gets what property, and how will retirement funds and pensions be divided. It is a good idea to review taxable assets to determine how best to divide those through the lens of your tax liability.

Finding a trustworthy family law attorney and then partnering with a financial advisor can help you answer the question of “how will this division of asset or spousal support income, or loss of income” impact my future goals.

It’s good to have a team of supporters throughout divorce. Our team has helped dozens of clients navigate the tricky financial issues that arise through the divorce and separation process. We work to educate you of your options and make sure you understand the likely outcome, financially speaking. We can even work hand-in-hand with your attorney to help take much of the stress out of an already stressful situation.

If you or someone you know is considering divorce, contact us for a discreet consultation to review the best course of action.

Lis McNealey Davies is owner of The Arlington Group Investment Consulting. A leader in the female focused financial advisory niche, Lis builds upon the group’s strong foundation and core offerings to drive growth and champion the group as an emerging advisory company in the divorce, widowed and life transition niches. As a previous divorcee and mom to three wonderful daughters, Lis understands firsthand the importance of financial confidence.

The use of the CDFA® designation does not permit Wells Fargo Advisors or its Financial Advisors to provide legal advice, nor is it meant to imply that the firm or its associates are acting as experts in this field. Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. The Arlington Group Investment Consulting, LLC is a separate entity from WFAFN.