If you’re a soon-to-be single, you need the help of experienced divorce financial planning professionals.
We know that divorce is emotional, complex and never easy.
Avoid the money and tax pitfalls along the road to and from the courthouse.
But now, more than ever before, you’ll need to understand your options.
Regain control, clarity and confidence as you prepare for this transition and begin a fresh start.
Divorce is never easy.
There are often difficult issues that must be resolved. You and your attorney need to create a solid game plan with a clear goal in mind. You will need professional support as you enter mediation, collaboration, divorce court, or a settlement.
Alimony. Pensions. Child Support. Divisions of Real Estate and Property like Stock Options or a Business.
Each of these have long-term tax and financial impacts. Proper evaluation of options will help in getting you back on track.
Top 5 Financial Mistakes of Divorce for Boston Area Couples
- Real Estate: This one asset can cause long-term financial hardship if not properly analyzed. Should you keep it, sell it or refinance it? And how will this decision impact your cash flow, tax liability and future funding of college or retirement? Most divorcing couples make the mistake of keeping the house only to find out later that one of them can’t afford it.
- Being Financially Disorganized: Most people approach their attorney, mediator or financial adviser without having any idea of how they stand financially. Without knowing your position you may end up with a settlement that isn’t fair or you may spend more in fees for professionals to help sort this out for you.
- Using Your Boston Divorce Lawyer as your Financial or Tax Planner: Your lawyer is a LEGAL expert and is most likely not skilled in the nuances of financial and tax planning. While there are certain formulas for alimony or child support, this is only one part of your future financial situation. What about the impact of cash flows, asset division and support agreements on future funding of college or for your retirement? Only a skilled and trained financial planner familiar with the BIG PICTURE of your finances will be able to provide sound guidance that can be used by your attorney when drafting a more equitable settlement.
- Not Looking at the BIG PICTURE: Each part of the wheel affects the tire. This is the same with finances. Many times professionals are NOT on the same page when giving you advice. They may provide it from only their point of view and not in consultation with one another, potentially leaving you open to making costly financial and tax mistakes now and in the future.
- Setting Up an Unrealistic Budget: Often people ho are getting divorced in the Boston area underestimate their true cost of living expenses. With so much at stake, be sure to make sure you have accounted for everything possible. A mistake here can easily lead to an improper divorce settlement and even bankruptcy. When downsizing from a two income household to a one income budget, lifestyle changes in so many ways. A qualified financial planner can help develop a new “single income” budget so that you can have confidence in how your lifestyle will be post-divorce.
How the Clear View Team and Steve Stanganelli, Divorce Financial Analyst and Boston Area Financial Planner, help
Before the divorce
- Gather and assess financial assets and liabilities
- Categorize and review historical spending patterns
- Determine and document your individual and marital assets
- Document marital standard of living
- Review financial statements and tax returns
- Prioritize personal financial goals and responsibilities
- Project anticipated financial needs
- Review and value public and private sector pension plans
- Review and evaluate employee and Social Security benefits if applicable (including stock options and restricted stock)
- Collect, analyze and review insurance policies (Term, Whole Life, Buy-Sell)
- Evaluate current long-term care insurance contracts
- Evaluate post-divorce estate planning strategies
- Analyze and review executive compensation plans
- Gather and consider college funding expectations and strategies
- Review and prioritize your personal financial goals
During the divorce
- Project post-divorce household funding requirements
- Calculate current and future inflation-adjusted cash flow models
- Determine life insurance requirements designed to replace support payments
- Assess and adjust retirement funding strategies
- Project education costs and funding strategies
- Equalize Social Security, retirement, pension benefits
- Review mortgage and debt structure
- Review real estate appraisals and business valuations as may be applicable
After the divorce through Clear View Wealth Advisors, LLC, Steve Stanganelli will:
- Facilitate and supervise asset and liability transfers
- Execute strategic financial plan
- Review insurance coverage
- Update financial plans as required
- Implement budget and resource management plans
- Launch long-term financial plan strategy
- Follow through with modified estate planning strategies
- Monitor investment performance, adjust as needed