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Safeguarding Your Finances During Divorce

Leslie S. Garske

Safeguarding finances during divorce

When #contemplatingdivorce, the unsettling reality of potentially losing half of your hard-earned wealth can trigger anxiety and doubt, making you question whether leaving is worth the risk of financial hardship.

Fortunately, there are strategies to safeguard your financial future. Your first step should be enlisting a #divorce-specialized financial advisor who can shed light on creative settlement options that may be available to you.

Consider the case of a couple married for 24 years who sought help with their divorce. Although they initially visited an attorney together and maintained an amicable #relationship, the attorney clarified that he could only assist with document preparation, as he was ethically obligated to represent just one party. The couple hesitated when informed that their assets and debts would be divided strictly down the middle, adhering to the 50/50 rule dictated by their community property state. They were then referred to a Certified Divorce Financial Analyst (CDFA) for a more informed approach.

Upon gathering their financial records and conducting a thorough analysis, the #CDFA provided two distinct reports for the couple. The first adhered to the attorney's suggestion of an exact 50/50 split. The second, however, proposed a creative settlement solution that still resulted in an equitable 50/50 distribution. Importantly, this alternative considered tax planning, consequences, and the individual needs of each party as they embarked on the next phase of their lives.

Despite their combined net worth being less than $800,000, the creative settlement solution netted each spouse an extra $20,000, thanks to the application of financial expertise in their settlement negotiations. This was tangible financial gain! Understandably, the couple was elated, knowing they had saved a total of $40,000.

Don't navigate divorce blindly. Numerous strategies exist to ensure both parties retain a more significant portion of their assets. Assemble a team of experts who can guide you through the process. We're here to assist you—reach out to us today

Don't wait! Book your consultation with one of our CDFAs:

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