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Health & Fitness

The Top 5 Concerns Women Have About Divorce

Contemplating divorce is a difficult decision that is met with a lot of uncertainty.  Facing the challenge of divorce can bring up a lot of questions and concerns, especially about the financial implications.  Misinformation and misconception about the divorce process can lead to false expectations on what life will be like after the split. 

 

Sharon Case, Financial Advisor and Certified Divorce Financial Analyst (CDFA) with Exemplar Financial Network has worked with women contemplating or pursuing divorce for 10 years.  “I’ve seen so many women stay in an unhappy marriage because of a fear of financial independence”, says Case.  “Divorce doesn’t have to be financially catastrophic for anyone with thoughtful planning.”.  She lists the answers to the top five questions her clients ask her when trying to get a clearer view of their financial future.

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1. Can I Afford to Get Divorced? For those who have never supported themselves outside of the marriage, financial independence can feel like a great unknown.  Getting sound financial advice from a professional before the divorce processes is started is essential to knowing if divorce is going to substantially change your lifestyle. Determining how much income you may need to support yourself and your children and where that income will come from is the one goal of a CDFA.  Sharon’s first recommendation to clients is to pull together all financial statements and documents before making the decision and reviewing them with her to get a clear picture of all of your assets held jointly and individually.  While alimony and child support issues are determined by an attorney, a CDFA will work along side the attorney to provide best case scenarios that help secure the best financial outcome.  “Everything from life and health insurance to cost of living as well as day to day expenses should be considered, not to mention the cost of processing the divorce itself.”.

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2. How will everything be divided in the divorce process? While certain decisions like who keeps the house and which roof the kids will live under are decided with the help of an attorney, a CDFA can assist the legal team with all of the financial divisions that need to be processed.  Keep in mind, that many of your decisions are not just about assets but may also concern substantial debt.  Joint credit card debt, mortgages, lines of credit and other marital debt items will also need to be considered.  Financial advisors with a CDFA accreditation go through extensive, careful analysis of every aspect of your financial life and provide the attorney with documented analysis and illustrations that clearly show what financial outcome is anticipated in those divisions.

 

3. How do I find a good lawyer I can trust? A CDFA never replaces legal counsel and finding a qualified attorney that shares your personal ideology in an integral part in helping the divorce process go smoothly.  “As a financial advisor I have worked with many different attorneys and often make recommendations to clients.” 

 

It is important to understand the different alternatives couples have to deal with divorce.  Collaborative Divorce is the newest method of alternative dispute resolution in family law.  It can best be described as a method of practicing law in which the lawyers for both sides (parties) agree to assist the clients to resolve conflicts by using cooperative techniques rather than adversarial strategies and litigation. The goal is to have all parties involved commit themselves to achieving a negotiated outcome. It is agreed that no litigation will be commenced during the negotiations.

 

Another alternative is call Divorce Mediation.  With this type of strategy, a couple works with a neutral third party, the mediator, to decide how to best end their marriage and how to handle issues related to children and finances.  The goal is to work through the issues to end the marriage amicably.

 

The final method of divorce is litigation.  In this case, both parties hire their own lawyers to represent them respectively.  This can be a long and expensive process.  It is usually the most emotionally draining process as well.

 

 

4. I’ve never handled money before.  Is there someone who can help me after the divorce?   A CDFA  specializes in assisting with a fair determination in the division of assets.  He or she uses specific software to provide couples and their attorneys with options for the division of assets. A CDFA cannot act as a Financial Advisor to either party in a divorce if they have been in the position of a financial neutral during the divorce.  However, once the divorce is final, a CDFA can make a recommendation for a Financial Advisor for either party to work with to help them with financial planning and organization post divorce. Setting up a financial plan, determining a realistic budget, helping pay down debt and saving for the future are what Financial Advisors do best.

 

 

5. What about social security? A CDFA can help answer questions regarding social security eligibility for ex spouses.  Many divorced women are not aware of their ability to acquire social security benefits from their ex spouse. Sometimes the children you had with your ex spouse are entitled to benefits as well

 

Be sure to make an appointment with your local Social Security Administration office and talk to a specialist about your options and entitlements.  

Investment advisor representative offering securities and advisory services through Cetera Advisor Networks LLC, member FINRA/SIPC.  Cetera is under separate ownership from any other named entity.

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