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Understanding Your Financial Situation is the First Step

A couple, married for many years, have three grown children who are on their own. Two are married and one has a child. Despite the happiness of being grandparents, countless problems drove them apart. After careful consideration, they decided to separate.

financial planning during divorce

The trial separation resulted in many concerns for the wife. Having very little financial knowledge, she was particularly worried she would not be able to provide for herself if they divorced. She met with HFA planners to help guide her through various financial implications she may face allowing her to make important decisions. To gain full understanding of the couple’s joint financial situation, planners reviewed assets and expenses, her husband’s expected pension and anticipated social security benefits. With this knowledge, they devised a plan and assisted her as she determined how much income she would need to maintain her standard of living and be comfortable for the balance of her life.

Working in concert with her attorney, HFA mapped out a separation plan that helped take care of her needs, yet was fair and equitable for her husband. Planners offered suggestions, including which assets to transfer based on her future income needs. They proposed a split of retirement assets and a discussion ensued about the family home. Cash flow and income tax issues were addressed throughout the planning process and finally, HFA assisted in determining alimony amounts and terms suitable for both parties.

They ultimately decided to divorce and when it was final, HFA helped to reregister assets in the wife’s name. Planners worked with her to develop a personal financial plan to assure her security and desired income for the rest of her life. To be sure her estate was in order, they coordinated steps with an estate planning attorney to update beneficiaries of any retirement assets and insurance policies.

The Moral of the Story: Ask for help beginning a new financial lifestyle after divorce.

The case studies presented are hypothetical in nature and intended for illustrative purposes only to demonstrate the range and scope of services that are provided by HFA to its clients. Individual advice and results will vary based on each client’s circumstances, objectives and prevailing economic conditions.