Navigating Divorce and Finances: The Crucial Role of Financial Advice and Planning in Divorce

Jeneen Slack |

By Jeneen Slack, CFP®, CDFA®
Financial Advisor

Going through a divorce is often a challenging and emotionally taxing experience. Coping with the emotional impact, navigating the legal process, and managing the financial implications of divorce present more than their fair share of challenges. Assembling a competent team when going through a divorce is of crucial importance. For many, collaborating with a Family Law Attorney and a Financial Advisor can help navigate the complex financial aspects of divorce more effectively, leading to a more informed and fair resolution. 

When hiring a Financial Advisor as part of your team, it is important to ensure that they specialize and have experience in divorce-related financial matters. A Certified Divorce Financial Analyst® (CDFA®) is a professional who specializes in the financial implications of divorce. A Financial Advisor who holds a CDFA® designation will have focused training in data analysis and issues of divorce, and can assist you with the following:

1. Financial Expertise

  • Asset Division: Understand the value of your assets and assist in the equitable distribution of property and assets.
  • Debt Management: Analyze and allocate joint debts, ensuring that both parties are responsible for their share.
  • Proposals: Analyze the long-term financial impact and tax implications of each settlement option.

2. Budgeting and Financial Planning

  • Post-Divorce Finances: Create a post-divorce budget that reflects your new financial reality, taking into consideration the changes in income, expenses, and lifestyle.
  • Long-Term Planning: Assist in long-term financial planning, helping you set realistic financial goals after the divorce.

3. Tax Implications

  • Tax Efficiency: Navigate tax issues related to alimony, child support, and asset division, ensuring that decisions are made with a clear understanding of the tax consequences.

4. Investment Planning

  • Holdings: Determine cost basis and tax consequences of selling/keeping securities, including stock options, RSUs, and evaluating buyouts.
  • Allocation: Allocate retirement assets fairly and provide guidance on the best way to divide these accounts.

5. Spousal and Child Support

  • Analysis of Support Calculations: Understand the calculations involved in determining spousal and child support, ensuring that these calculations are accurate and fair.

6. Financial Documentation

  • Gathering Financial Information: Assist in gathering and organizing all necessary financial documentation, making the legal and financial processes smoother.

7. Emotional Support

  • Objective Perspective: Provide an objective perspective on financial matters, helping you make decisions based on facts rather than emotions during a challenging time.

8. Financial Education 

  • Confidence: Empower you with knowledge about your financial situation, helping you make informed decisions and take control of your financial future.

Sound financial guidance enhances financial outcomes through tailored guidance, strategic planning, and professional insights. In order to achieve a coordinated integration of legal and financial considerations during the divorce process, the collaborative engagement of a Family Law Attorney and a Financial Advisor is often recommended.

For over 15 years, Jeneen has been using her comprehensive knowledge of the divorce specific financial planning process to help her clients make the best decisions for themselves, their businesses, and their families. Contact Jeneen for a consultation today. 

Jeneen Slack, CFP®, CDFA®
Financial Advisor
CA Insurance License #: 0F54862
Summit Financial Group, LLC
O: 925.866.7800
jeneen@summitadvisors.com
www.summitadvisors.com

UPCOMING DIVORCE WORKSHOP
Are you considering divorce, or in the midst of one? Join us in our engaging live online workshop led by knowledgeable local professionals, featuring a Family Law Attorney, a Marriage & Family Therapist, and a Financial Advisor. They will address the legal, emotional, and financial facets of divorce. This confidential presentation will include issues and challenges that everyone considering divorce should understand. 

To reserve your spot, and for more information, please visit www.secondsaturdayeastbayarea.org.

Securities offered through Raymond James Financial Services, Inc., member FINRA /SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Summit Financial Group, LLC is not a registered broker/dealer and is independent of Raymond James Financial Services. 2000 Crow Canyon Place, Suite 450, San Ramon, CA 94583.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.