How Can a Financial Advisor Assist with the Divorce Process?

 Posted on November 10, 2023 in Divorce

If you have made the decision to file for divorce, you will need to address a variety of financial issues. The divorce process involves the division of assets and debts, as well as concerns related to financial support, retirement planning, and other issues that can affect your short-term and long-term finances. In addition to legal representation from a divorce attorney, it is often beneficial to seek guidance from a financial advisor as you work to legally dissolve your marriage. 

The Role of a Financial Advisor in a Divorce

A financial advisor can help manage money matters and provide advice on investments, taxes, and other financial concerns. When it comes to divorce, their role can extend beyond traditional financial planning. A financial advisor can assist you in making informed decisions about your finances during and after the divorce process.

Here are some ways in which a financial advisor can assist you during your divorce:

• Evaluating assets: One of the primary tasks for a financial advisor is to evaluate all marital assets, including bank accounts, real estate properties, investments, retirement accounts, business interests, and any other valuable possessions. They can work closely with your attorney to ensure an accurate valuation of these assets, which will inform decisions about how your marital property will be divided between you and your spouse.

• Budgeting: When you separate from your spouse, you will need to adjust your budget based on your individual income rather than shared finances. A financial advisor can help create realistic budgets by analyzing income sources and expenses while considering future goals such as education costs or retirement plans.

• Tax implications: A knowledgeable financial advisor can guide you through the potential tax consequences that may affect you during and after your divorce. They can make sure you understand the best ways to address taxes on property transfers or sales, while also helping you determine your filing status and eligibility for tax exemptions and credits.

• Retirement planning: Divorce can have a significant impact on your plans for meeting your needs later in life. A financial advisor can help you understand the potential effects of divorce on your retirement savings and benefits, and they can assist you in developing new strategies to ensure a secure future.

• Debt management: Dividing debts is often an essential part of the divorce process. A financial advisor can help identify all outstanding debts and work with you to develop a plan for managing and dividing them fairly.

• Evaluating settlement options: During negotiations or mediation, a financial advisor can provide valuable insights into different settlement options. They can analyze proposed settlements to determine their long-term financial implications and advise you on whether an agreement is fair and sustainable.

The Benefits of Working with a Financial Advisor

Hiring a financial advisor during divorce proceedings offers several benefits, including:

• Avoiding costly mistakes: A skilled financial advisor can provide objective advice to ensure that you understand the long-term implications of the decisions made during your divorce.

• Fair asset division: By thoroughly evaluating assets, liabilities, income sources, expenses, and tax implications, a financial advisor can help prepare a fair and equitable proposal for the division of marital property.

• Informed decision-making: With access to an advisor’s comprehensive knowledge about financial concerns, you can be informed about issues relating to property division, child support or spousal support payments, debt management strategies, and other issues that will affect you going forward.

• Reduced stress: Going through a divorce is already emotionally challenging. Having professional guidance from a trusted financial advisor can help alleviate some of your stress by ensuring that complex monetary matters will be handled efficiently.

• Long-term financial planning: A financial advisor can help you address your immediate financial concerns during your divorce, and they can also assist in developing a long-term strategy for post-divorce financial stability. They can provide guidance on rebuilding credit, setting new financial goals, and adjusting investment strategies.

Contact Our Experienced Milwaukee, WI Divorce Attorneys

If you are going through a divorce, it is crucial to have the right team of professionals by your side. At Gimbel, Reilly, Guerin & Brown, LLP, our experienced Milwaukee divorce lawyers can work closely with your financial advisor to ensure that you receive comprehensive support throughout the entire divorce process. To schedule a free consultation, please contact us at 414-271-1440.