Getting divorced can be expensive. Here are 4 financial considerations in divorce.
1. Have you created banking accounts for just your daily financial needs?
You’ll probably need to start opening accounts set only in your personal name if you are getting divorced. You should also develop a thorough list of your new assets and liabilities, revised to reflect your new circumstances.
2. Do you need custom financing for your distinct needs?
Customized credit might be a reliable source of effective funding if you wind up with unforeseen costs, business investments, or real estate costs. A seasoned professional can evaluate your options and offer you lending that is based on the unique assets you have, which might include illiquid or specialty holdings. Possible answers to think about include:
- Bridge financing that makes a substantial purchase possible
- Lines of credit backed by marketable securities, including both concentrated and restricted stock
- Loans backed by specialized assets that are secured with aircraft, yachts, fine art, or partnership interests
- Real estate financing, both investment and retail, including possible lines of credit
3. Can you project how much your divorce settlement might sustain your intended lifestyle?
A seasoned financial advisor can provide you a thorough financial plan by looking over changes to your cash flows, especially in terms of expense changes, alimony, assets received, and other potential cash flows that survive or arise from the dissolution of your marriage. An advisor can review the following factors to give you a comprehensive look into how to balance your likely expenses while keeping some semblance of the desired lifestyle you want:
- Cash flow that plans for both expenses and income
- Child support and/or alimony
- Sustainability of your assets and analysis of your portfolio risk
- review of your tax circumstances and planning for them appropriately
4. Have you gone over your various estate planning documents in order to make the required changes?
If you have a seasoned financial advisory group around you, they can help you go through all your crucial estate planning documents.