Are you getting divorced? This is a challenging time for most people, but it can be even more so when you haven't been directly involved in managing the family's finances. In this case, a spouse who feels insecure about their financial experience may worry about negotiating a good deal and managing things afterward. If you feel this way, here are five reasons to meet with a financial planner now.
1. Financial Planners Educate You. If you don't know what 'tax-advantaged' means or how to judge the liquidity of an asset, a financial planner will help you get caught up. These trained accounting and finance professionals can aid in understanding the basics of managing your own money. This way, you can negotiate in confidence and decide about your own financial future.
2. Financial Planners Put It All Together. Fee based financial planning looks at all your assets and goals over the long term, which is particularly important at a time when you risk being sidetracked by short-term financial concerns. This 'big picture' angle ensures nothing is forgotten. So, while you may be focusing on your monthly income, the planner can help figure out how much retirement savings you'll need or if your investment portfolio should have more or less risk.
3. Financial Planners Are Confidential. When you hire and meet with a financial planner, they work for you. Your visits will be confidential to the extent of the law. So you can ask questions, get clarification, express concerns, and make plans without your spouse or others knowing what you discuss. This is particularly important for a spouse who may need to pursue divorce due to an abusive situation.
4. Financial Planners Have Experience. Even if you feel somewhat confident that you can manage your post-divorce money, you may find that being a divorced person is more different than you expected. You may go from a two-income family to one income. You may need to catch up on retirement. You may have kids approaching college. Or you may need to find a new career. A financial pro has seen it all before and can help steer you through this difficult transition.
5. Financial Planners Benefit Negotiations. When it comes time to negotiate the divorce, a financial professional is a valuable ally in figuring out what you need to fight for. This includes things like alimony, child support, education expenses, retirement accounts, and debt payoff. As you and your financial planner come up with the amounts, your divorce attorney will help you get them.
Could you use help in any of these areas? Whether you want to understand finances better or you need to make a post-divorce plan, a fee based financial planner should be part of your team. Learn more about their services by making an appointment today.