First, don’t despair. Make a list of all assets and liabilities, individual and marital, or community property. State statutes determine who has a right to what. Ask your lawyer for the specific laws in your state. Next, hire someone to help you figure out the true value of these assets. A Certified Divorce Financial Analyst or qualified fee-only Financial Planner will ask to review your tax returns, financial account statements expenses, retirement plan documents, estate and gift tax returns, and employee benefits statements. If you or your spouse owns a business, you will need to have the business appraised. Don’t take risks by guessing, instead hire a Certified Business Appraiser (CBA).
Professional financial planning is available from members of The National Association of Personal Financial Planners and The Garrett Planning Network. Members of these organizations are “fee only,” which means they are not compensated from product purchases or sales. Look also for a Registered Investment Advisor (RIA). Such advisors are held to a higher legal standard known as a fiduciary standard. By law, a fiduciary will act solely in the best interest of the client. Advisors and stockbrokers may offer the same services as fee-only, Registered Investment Advisors, but such advisors are not held to the same ethical standard.
Divorce comes with high stress levels. You may be tempted to ignore financial considerations and taxes. However, overlooking these areas may prolong your suffering. What appears to be an equitable split may look quite different just a few years after a divorce when the net worth of one spouse may far exceed the net worth of the other. Take the time during the divorce process to make sure you end up with what is rightly yours.
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