Dealing with the Financial Challenges of Divorce

After just going through a difficult divorce, a woman came to us on the recommendation of her father. She had limited knowledge of her finances and was concerned about the well-being of both herself and her children.

The Situation

  • 50 year old divorcee with 4 children
  • Challenged with running the household and managing finances for the first time
  • Wanted to understand the financial ramifications of her divorce
  • Little understanding of her significant assets or how they were invested
  • Unsure of how to handle the large amount of alimony and child support
  • With no earned income, concerned about outliving her assets

Our Approach

  • Educated her on financial, tax, estate, and cash flow planning
  • Drafted a net worth statement and comprehensive financial plan
  • Designed a new investment plan to fit her current goals and objectives
  • Recognized the need for advanced planning given the size of her estate and implemented more impactful charitable giving strategies
  • Incorporated better asset location and tax efficient investments in her portfolio due to her high income tax bracket

Collaborating with Specialists

  • Worked with client’s divorce attorney to facilitate QDRO (Qualified Domestic Relations Order) transfers into an IRA
  • Introduced her to an estate planning attorney to establish new documents including a revocable living trust and ensured that all assets were properly titled
  • Introduced her to an accountant for assistance with income tax planning and confirmed that her investments were aligned with her tax plan

Significant Results

  • Increased knowledge and confidence about finances and investments through ongoing review meetings
  • Assets are now properly titled and invested according to her goals and aspirations
  • Lowered anxiety about her financial well-being in the future
  • Established team of trusted advisors working in her best interest