After a Divorce: Financial Confidence

financial independence

This is an example of how we assisted a divorcing client.


“Julie” was unhappy in her marriage and after attempts to reconcile, has decided to file for divorce. She was required to provide statements and declarations regarding her financial position so that her attorney could analyze the available income for Julie’s monthly support and her attorney’s fees. Julie couldn’t prepare one as she had little idea of what her current financial position was. 

Julie was uncomfortable managing money and her credit card purchases had recently been over the limit. She is also concerned for her children, one of whom had special needs. She fears running out of money as she has little work experience to fall back on. She was also interested in going back to school and getting her life back on track.

 

Julie was looking for someone to provide her with a complete financial plan, help her to understand and implement it.

We worked with Julie’s divorce attorney to prepare a list of documents to request from her husband to obtain a complete picture of Julie’s and the community’s financial circumstances, as well as the parties’ assets and debts.

 

Our focus was to help stabilize Julie’s uncertain financial condition by determining the long term impact of the proposed divorce settlement, using multiple financial scenarios.

By examining her complete financial picture, we provided detailed analysis and specific recommendations which were provided to the family law attorney for use in the negotiation of a settlement.

 

After the divorce, taking Julie’s new personal goals and objectives into account, we followed up with the preparation of several post-divorce budgets, reviewed insurance and estate planning documents, and developed a personal retirement and investment plan based on her projected resources and attitude towards risk.

 

In the process, we discovered that Julie was underinsured for life insurance, and lacked both disability and Long Term Care insurance. We advised her as to the purchase of the necessary coverages which helped quell one of Julie’s main fears: outliving her financial resources.

We coached Julie for six months during the post-divorce transition to becoming financially independent. We continued to meet with Julie quarterly to keep her on track with implementing her budgeting and financial plans. We met with Julie’s new estate planning attorney to execute a new will and family trust, chose and put guardians in place for her children, updated her health care directives and created a special needs trust for her child.