After just going through a difficult divorce, a woman came to us for assistance. She had limited knowledge of her finances and was concerned about the well-being of both herself and her children.
Dealing with the Financial Challenges of Divorce
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