Important legal, tax, and financial considerations after a separation or divorce
After a separation or divorce, you may be inclined to make impulsive financial decisions. But making things easier today can make them more difficult in the future.
During your marriage, did you or your spouse make most of the financial decisions? Regardless of your experience, seek professional help in planning for negotiation.
Achieving Negotiation Success
Assemble Your Financial Team
Before making any decisions, assemble a trusted team of legal, tax, and financial advisors. They can help you remove your emotions from the equation while calculating your long-term success. Find a CFP® who can help:
- Understand the tax implications of your assets and settlement opportunities
- Develop a cash flow plan that will help you during negotiations
- Work with your accountant and attorney to give you an unbiased picture of your situation
- Define your financial vision
- Provide a realistic perspective on challenges that might prevent you from achieving your goals
Remember Your Role in the Negotiation Process
Your financial planner will help guide you. But you need to take a healthy interest in the negotiation process, too, by doing the following:
- Avoid emotional attachment. Because of taxes and other costs, it may be more financially expedient to sell rather than keep cherished assets
- Be engaged. Request a weekly email update from your advisors, and hold them accountable for the timeline they have given you.
- Consider mediation. Don’t spend $10,000 to get $1,000. Many divorcees prefer mediation to traditional proceedings.
Quick action is just one of many mistakes associated with separation and divorce. If you’re unaccustomed to handling the financial decisions, you could easily fall victim. During this difficult time, you deserve a team that can contribute decades of experience to your negotiation success.
To learn more about how to financially plan for other life pivot points, click the links below: