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Key Financial Points to Consider in a Divorce in the Orlando, Florida Area

Andrew Osterland wrote an interesting article in the Advisor Insight about the importance of sound financial planning during a divorce. The article quoted Certified Divorce Financial Advisor Stacy Francis CFP, who states that there are five key issues to consider when ending a marriage. Also quoted in the article was Certified Divorce Financial Advisor Michael Ruger, who said “People often don’t look far enough ahead.”

Standard of Living

Both of these experts said that the first thing to understand is that, for everyone but the very wealthy, divorce will hurt their standard of living. Two households are more expensive to maintain than one. If one person in the marriage has been a stay-at-home parent, there is less income; and a settlement, whether mediated or litigated, will almost certainly reduce their quality of life. 

This is one reason why it is important to speak to a financial advisor to help you determine the best way for you to receive an equitable distribution. After meeting with a financial advisor, you can instruct your attorney on which assets you wish to acquire in equitable distribution. 

Five Key Issues to Consider

Choosing Mediation or Litigation

The first issue to consider, according to Francis, is whether you use mediation or litigation. You need to consider that a divorce settlement mediated with a collaborative approach has some major advantages over litigation. One advantage he mentions is that it typically costs less. 

Budgeting for the Long Term

One expert says that another issue to consider is budgeting for the long-term. According to this expert, a clear understanding of your long-term living expenses is crucial to negotiating support payments and a settlement with which you can live. The expert also says that when you come to the negotiating table, you should think about your expenses not just two to three years after divorce but 20 to 30 years out. 

Watching Your Assets

Both experts say to watch your assets. They say that not all assets are created equal. They tell you to make sure you consider the after-tax value of all assets and the different risks that they present. 

Minding Your Taxes

According to the experts interviewed for this article, you need to mind your taxes. They said that understanding how different assets and income streams are taxed is crucial to the equitable division of assets. That means meeting with a CPA is an important step.

Updating Your Life

The experts say that another necessary step is to update your life. They say the key things to address when your divorce settlement  becomes final include updating your will, power of attorneys, beneficiaries, and other estate-planning documents to reflect your changed circumstances. 

Financial Planning

You may want to discuss all of these issues with a financial planner, along with a couple more essential items. The experts say that someone who has been out of the workplace for an extended period needs to think about whether they need to return to the workplace and if they need training to help them get back to work. You also need to discuss whether you can afford to keep the house after the divorce. These are a few things to think about when divorcing. 

If you have more questions regarding a Marital and Family Law matter, you may call Ann Marie Giordano Gilden at Ann Marie Giordano Gilden, P.A. at 407-732-7620 and set an initial consultation. 

This article is for informational purposes only and does not form an attorney client privilege.