Financial Advisor Roles in Divorce
Consulting with a financial advisor during divorce is a novel idea to many women. This occurs despite the fact that many women are concerned about finances and may even have goals for future financial stability.
According to Forbes, a new study revealed that more than 95% of women going through divorce don't use financial advisors.
Why not? The primary reason is a lack of knowledge. A very small percentage of women (5%) know they could include a financial advisor on their divorce team. Yet, there is even certification and a title for such advisors called a Certified Divorce Financial Analyst (CDFA). In many families, husbands paid the bills, invested earnings and in general took care of the finances. Since wives didn’t assume much of the financial role, they were unaware of many financial details and options.
What Types of Financial Goals Do Divorced Women Have?
Forbes cited a survey that showed women’s future financial goals were as such:
- 66% hoped to pay off debt
- 41% wanted to be able to save for a comfortable retirement
- 38% would like to have an emergency fund
- 27% aspired to purchase a new home
- 20% were striving to create new streams of income
- 19% were hoping to build their wealth through investments
What Sorts of Financial Details Can a CDFA Assist You With?
A CDFA helps you and your divorce lawyer address the long-term and short-term aspects of finances. Your CDFA can advise regarding tax consequences and how to divide pension plans or deal with investments. How should you deal with the family home? Would it be better to sell or deed the house in the wife’s name so she can raise the children there? Is there a plan for continued health coverage? Are there any hidden assets that haven’t been considered as part of the settlement?
Financial advisors work closely with attorneys, providing information about assets and financial planning so they can propose equitable settlement terms.
At Pfister Family Law, our lawyers can help you make important decisions during divorce. We are glad to discuss your options, give legal advice and answer any questions you have.