What is Divorce Financial Planning?
Divorce Financial Planning is the application of expert analysis and strategic thinking to negotiate favorable financial terms and settlement for a divorce. It is the process of providing guidance, education, support and analysis of financial issues to make rational and informed decisions throughout the process. The traditional financial planning process looks forward and projects into the future. Financial planning for divorce begins with analysis of historical financial information in order to make sound financial decisions during the divorce and for the future.
BRR Divorce Advisors are experienced, personally and professionally, in the intricacies of financial issues in divorce. We are Certified Divorce Financial Analysts™ (CDFA™) and Certified Financial Planner™ (CFP®) practitioners. Our role is to assist our client and his/her attorney to understand how the financial decisions he or she makes today will impact their financial future.
• We help our clients build a complete financial picture, develop creative strategies and ultimately make sound financial decisions so there are no unexpected consequences and the most favorable financial outcome is achieved.
• We help our clients understand the short and long-term impact of the financial decisions they face, and we will offer insight into the pros and cons of different settlement proposals so they may choose the option most consistent with their goals.
Our clients learn about the ramifications of complex subjects such as separate property, valuing and dividing property, retirement and pensions, spousal and child support, the family residence, tax ramifications and insurance. They will:
- Understand the difference between separate and marital property
- Understand how personal property, intangible and illiquid assets are valued and divided
- Understand defined contribution versus defined benefit plans and how they are valued and divided
- Understand the tax ramifications of spousal and child support including recapture and
child contingency rules
- Understand the importance of security for support payments
Our clients receive personalized reports that illustrate their financial status, cash flow, and net worth prior to and post-divorce. These client reports are updated throughout the process as needed.
We produce powerful case exhibits for our clients and their attorneys in the form of spreadsheets, graphs and tables that simply and completely convey the results of our analysis and assist to:
- Find hidden and obscure assets and avoid missing something in the settlement
- Determine income available for child and spousal support calculations
We provide reliable expert witness testimony if the case goes to court.
We offer planning strategies and help brainstorm solutions for each and every question or concern.
Our clients avoid the common financial mistakes made in divorce and choose the best settlement options.
Most importantly, our clients transition successfully into their new financial reality with a game plan for financial independence.
How do BRR Divorce Advisors differ from other financial professionals?
Most financial planners and accountants excel in their chosen field, but they have little to no training specifically related to the financial issues of a divorce. When a client asks them for assistance, many financial planners and accountants are unable to provide the information the client needs, or even worse, they are unaware that they do not have the required knowledge and end up finding out what they should have known only after the divorce has been finalized.
I have an attorney. Why do I need BRR Divorce Advisors?
If you are considering or currently navigating a divorce you probably have a lot of questions, most of which boil down to, "Am I going to be OK?”. The reality is that everyone’s definition of OK is different and everyone’s idea of fair is different. Building a competent and trustworthy team of advisors that can help you determine what OK and fair really mean to your family is crucial in this emotional time of your life. There are really three parts to every divorce: the legal, the emotional and the financial. You need an attorney to provide legal advice. You may need a mental health professional to help you navigate your emotions. You need advisors competent in financial issues specific to divorce, such as Certified Divorce Financial Analysts™ (CDFA™) to provide financial advice. We become part of your divorce team working alongside your attorney to provide the financial analysis.
What role does BRR Divorce Advisors play in gathering financial data?
We work with our clients to identify and collect the financial data pertinent to the dissolution of a marriage. From the original data gathering we evaluate key financial concerns related to divorce, such as income and deductions, living expenses, assets, and liabilities. This process will likely lead us to other information we will need to request. We work with the attorney to compile complete and comprehensive document requests, interrogatories and depositions to ensure no stone goes unturned. We have experience in uncovering hidden and obscure assets that have otherwise may be missed. Once comfortable that all data has been gathered, we help our client’s attorney prepare accurate and defensible schedules of assets and debts, and income and expenses. We can save time and money by making sure the financial information is accurate and complete, allowing the attorney to focus on the legal aspects of the case.
Who should utilize BRR Divorce Advisors?
All individuals going through the divorce process will benefit from divorce financial planning. We work with clients from a variety of backgrounds, including but not limited to: women individually, men individually, families with one primary wage earner, dual income families, retired individuals and couples, first or second marriages, families with and without children, individuals and families with significant assets and income, individuals and families with moderate assets and income and families or individuals with significant inheritance or potential inheritance.
For additional information on divorce planning services, contact Budros, Ruhlin & Roe.
Amy Weldele, CFP®, CDFA™