There are different advisors that you will have on your team when you go through a divorce and one of them should be a Certified Financial Planner™. Your attorney provides you with legal advice regarding your case and what your rights are, explain how the courts might rule regarding case law. Your attorney is who you will consult with regarding all aspects of your divorce.
To have a Certified Financial Planner™ on your team is essential because the responsibility of that planner is to consider the future with your financial stability five to ten years out and how it will look post-divorce. They will assist with assets being divided and how financial matters need to be handled. Attorneys look at it based on the here and now and not the future. By only looking at the here and now, some important financial decisions can be missed, and you will need to deal with them later, after the divorce.
During the process of divorce, it is very emotional, and it’s hard to separate your emotions from critical financial decisions that affect your financial future post-divorce. There can be retirement and investment accounts, life insurance and other insurance policies, and it is vital to your financial health to understand the future cashflow situation. Once assets are divided, it directly affects how much support you will have to pay or receive after the divorce settlement. This may require you to rethink your financial situation regarding cashflow. Some people need to go back to work, or find a different type of employment that helps increase cashflow into the home now that a second income is gone.
There are other advisors that can be utilized in your divorce case. Your Certified Financial Advisor will explain their specific role in your case. For example, a forensic accountant may be utilized, and your advisor will be able to explain what they are looking for and what that means for you. Your Certified Financial Advisor acts as a co-pilot or coach for you to assist and explain financial decisions that will keep you better prepared for all aspects of the financial parts of the divorce.