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Do divorcing couples need to work with a financial planner?

| Aug 25, 2020 | Divorce & High Asset Divorce |

Someone might divorce his or her spouse for irreconcilable differences that have nothing to do with finances. During the divorce proceedings, however, matters related to finances emerge. Newfound financial responsibilities could prove overwhelming. However, help might be available in the form of a certified divorce financial analyst (CDFA). A person who is going through a divorce might find it valuable to examine the potential benefits of hiring such a financial planner.

Not all couples handle financial issues in the home or business equally. One person might be the one responsible for homeowner’s insurance and auto insurance payments. If the divorce leads to the other spouse owning the home and vehicle, he or she must now assume the insurance responsibilities for them. Lack of familiarity can create stress and confusion. Also, he or she might not have dealt with the insurance brokers and lacks relationships with them. Yes, divorce does often bring forth unexpected difficulties. A financial planner might be able to provide some counsel here.

There are other issues to consider when divorcing. What type of budget would be best for the household? Is there a plan to address any debts? Attempts to navigate such issues become complicated when individuals lack experience with them. A financial planner won’t take over duties and responsibilities directly, but a professional’s advice and knowledge can provide helpful guidance.

A point worth repeating is that a CDFA specializes in divorce-related financial matters. A “general” financial planner could be of assistance, but someone dealing with divorce-related concerns might wish to work with a specialist. A traditional financial planner might have limited experience with divorcing clients. A CDFA has extensive experience.

Divorce proceedings may focus heavily on financial issues, such as alimony, asset division and more. The process could end in a settlement or a protracted trial. An attorney’s main goal is to win favorable rulings for his or her clients.