Apr 12, 2022
Your Financial Advisor is Your Trusted Ally
Divorce can be a lonely and scary time – challenging your emotional resolve and creating tremendous financial pressure and uncertainty.
When entering a divorce proceeding, or even considering filing for divorce, do not tackle the process by yourself. The most important first step is to assemble your divorce team. Beyond the personal support of your close friends and family, your team should include both an attorney with expertise in family law and an experienced financial advisor who specializes in planning and investments. The team will help you take control of the situation and empower you to make clear and informed decisions every step of the way.
Who Does What?
Your attorney will help navigate all legal requirements and filings to ensure that you have a well-crafted and fair divorce settlement. They will also manage negotiations regarding the division of the assets and debts, child custody, spousal support; and how future events, such as visitation, will be handled.
You will need to make key decisions throughout the process that will have a direct impact on your financial life. As the emotions of the divorce process can sometimes get in the way of smart financial decisions, your advisor can provide an objective (and calming) perspective to help you stay focused on what matters most and how to best set expectations for your financial future.
Your financial advisor will collaborate with you to ensure that you understand the implications of any proposed divorce settlement and how different scenarios could play out. The advisor can also plan alternative scenarios to help the negotiation process and pace of the divorce. For example, while your attorney may explain that the division of assets must be equitable, you should turn to your financial advisor to help you understand what that means for your financial future – and help you plan accordingly.
When choosing a financial partner, it is important to make sure they are a fiduciary – one that is legally obligated to put your best interests first. Fiduciaries offer objective and unbiased advice and do not get paid on commissions – so you can rest assured that they are not pushing or selling you a product. It is also important to make sure the advisor has the experience and credentials to help you manage the financial challenges of the divorce process – and beyond.
What Happens After the Divorce?
Your attorney will be essential at every step of the divorce process. They are your “short-term friend” to help you craft an equitable settlement and make sure that you do not miss any opportunities or legal requirements. Once the divorce is final, their job is complete.
Your financial advisor is your trusted ally who will not only collaborate with you to make smart decisions throughout the divorce process but can be your “long-term friend” – partnering with you to rebuild and manage your ongoing financial health – from tax implications to child support, to what happens financially if you change jobs or go back to school after the divorce.
NPF is an independent advisory firm – fiduciaries with the experience and credentials to protect you during and after your divorce – and empower you with the confidence to take back control of your financial life.
Pro Tips:
- Build Your Team
- Understand your immediate and potential future needs
- Make a plan
