Ensuring Financial Secuirty
Divorce Financial Advisors
Divorce can create fear and uncertainty. If you are preparing for, in the middle of, or have finalized your divorce, we can provide you with immediate clarity of what you have and how your new life will look financially. As divorce financial advisors, we specialize in working with the so-called “out spouse,” a term for the spouse that hasn’t been involved in paying the bills, managing the investments, buying insurance, budgeting, or who doesn’t have the relationship with the family attorney, CPA, or financial advisor. Once separated or divorced, the “in spouse” already has the experience and relationships to transition financially but the out spouse has to start from scratch.
Robert is a Certified Divorce Financial Analyst and we are known nationally for providing financial planning and investment advice to sudden wealth recipients. For the spouse that was not involved in the finances, suddenly being responsible for her share of assets and investments can feel overwhelming. As a child, Robert Pagliarini experienced the effects of his parents divorcing. As a result, he is passionate about helping clients manage their divorce. In addition to his master’s degrees in financial services and psychology, Robert has extensive training in the financial matters of divorce as a Certified Divorce Financial Analyst.
Following divorce, the woman’s standard of living plummets by 27% while the man’s improves by 10%. ¹
Regardless of how affluent the couple is, there is often a great deal of worry about the financial future. As sudden wealth divorce financial planners who have specialized in working with the out spouse, three fears have emerged as most common. While some degree of worry and apprehension is to be expected, with a little work and planning, these three common divorce fears can be eliminated and can help the out spouse feel more confident and secure:
- Fear of not getting a fair share. If your finances are simple, it can be easy to evenly divide the assets, but if your finances are more complex (e.g., multiple homes, employer stock options, closely-held business, illiquid investments, separate property), this can become much more difficult. The solution is to answer these two questions: What do we own and what is it worth? If you are concerned that assets are not being disclosed, discuss this with your attorney and consider hiring a forensic accountant – basically a financial detective – to help uncover any undisclosed assets. The next issue is to arrive at a fair value for each asset. This is an area that is ripe for abuse.
- Fear of not knowing what you’ll have. This is a pervasive fear . . . and it’s completely justified! In a divorce, it is easy to get lost in the details and lose sight of the bigger picture. It’s critical to stay focused on what your finances will look like post-divorce. This starts by knowing not only how much you have, but WHAT you have and WHERE you will have it. For example, $600,000 equity in your house is very different from $600,000 of cash in the bank or $600,000 worth of stock in your ex-spouse’s business. Get rid of the fear by getting clear on your assets. When working with clients, we make sure you are not only getting your fair share, but that you don’t get stuck with illiquid assets while your ex gets the cash.
The average length of divorce proceedings in the United States is 1 year.
Fear of not knowing how your lifestyle will change. This fear comes down to cash flow. After alimony, child support, employment income, investment income, and basic living expenses, how much will I have left? How much house can I afford? Can I still take trips twice a year? Do I have to fly coach now? These are real concerns that keep many soon-to-be divorcees up at night. To squash this fear, we create a very simple post-divorce income and expense report for you so you can quickly see how your new finances will affect your lifestyle. We also map out not only what you can afford, but provide an investment plan so you can get the most from your assets.
It’s common and natural to experience a wide range of emotions – from worry to excitement to anger to contentment – when going through a divorce. For the out spouse that isn’t as financially savvy or who wasn’t involved in the couple’s finances, fear and uncertainty regarding money are all too common, but with some planning and us on your side, you can feel more confident and secure about your future and your finances.