Steps in Financial Planning for Divorce
- Reviewing financial documents submitted by the spouse. These are frequently complicated and require a certain level of expertise in finance.
- Creating a spreadsheet to divide the marital estate, considering your individual situation, and adjusting for taxes when needed.
- Helping to create a budget for the post-divorce lifestyle.
- Guiding you to estimate your children’s needs and expenses over the coming years.
- Estimating your taxes for a) the year of divorce, and b) for the first year post-divorce. This can involve educating you about tax credits that may become available to you as a single parent. It is also useful to estimate a husband’s taxes both with and without alimony payments in order to illustrate the substantial tax savings.
- Creating a spreadsheet to look at the coming 20 years, bringing in expected assets, the budget, the taxes, income, and other items. This is where Divorce Financial Planning becomes a roadmap to the future and to decisions on asset division, budgeting, home purchase or sale, retirement, and other issues.
- Educating you concerning medical insurance options for post-divorce.
- Looking at the college funding situation and how it is affected by the divorce; who should be responsible; what options are available for funding.