Divorce Financial Planning

If you believe your marriage is heading for divorce, you will want to be financially prepared, for the divorce process and what comes after.

“I understand firsthand just how complex and stressful a divorce can be.” -Amy Begnaud

ABOUT AMY BEGNAUD

Amy Begnaud is a Certified Financial Planner® professional, Wealth Management Financial Advisor and a Certified Financial Divorce Analyst® at Janney Montgomery Scott LLC in Mt. Laurel, New Jersey. She focuses on one of the more unconventional areas of wealth management services… women and divorce. She targets her attention on helping women going through divorce in making important financial decisions during a time of high emotional stress and uncertainty.

Having endured her own divorce in 2008, Amy not only understands firsthand just how stressful a divorce can be, she also feels compelled to help other female investors navigate through the confusing and, at times, intimidating financial challenges a divorce can present. Uninformed and spontaneous decisions made today, can lead to financial burdens tomorrow. Amy’s goal is to enable her clients and their attorneys to potentially avoid the financial pitfalls of a divorce through divorce planning, settlement negotiation and financial independence. Along with her father and partner, Gary Begnaud, they are shining a spotlight on this under addressed, yet critical, wealth planning concern.

Amy lives in Moorestown, New Jersey where she raised her three children. Showing them the importance of helping others has always been essential to her as a mother. She’s proud to empower other women in creating a plan for an awesome life on the other side of divorce!

Click Here To View The Article

THRIVING FINANCIALLY BEYOND DIVORCE

Divorce can be one of the most traumatic events in life. Many important financial decisions have to be made during a time of high emotional stress and uncertainty. Having an advocate who will focus on your financial well-being and provide an objective viewpoint can help reduce some of the anxiety.

Most couples do try to reach a mutually agreeable settlement. Unfortunately, what looks fair today may not be equitable over time. A Certified Divorce Financial Analyst® can be your guide during the divorce process by explaining your options and leading you through the many difficult choices you will face, while working hand-in-hand with your attorney and CPA.

WHY DO I NEED A CDFA®, IF I ALREADY HAVE AN ATTORNEY?

Although most professionals understand the need for advice that’s specifically geared to the financial issues in divorce, occasionally, a potential client asks me why they need a Certified Divorce Financial Analyst (CDFA®). When so much money is already being spent on legal fees, does the average divorcing client need a specialized financial expert? The reality is that for many cases, none of the other professionals, be it a lawyer, accountant, business appraiser or even the couples’ existing financial advisor are specifically trained in the financial complexity of “un-coupling” the marital estate.

Considering that a divorce is likely to be the largest financial event in a person’s lifetime, it’s critical to get specialized advice. That’s where a CDFA® comes in; a professional who is trained both by education and practical experience, specifically in the divorce financial planning arena. Friends and family are incredibly important during this difficult time; they can provide the support and structure you need. However, it is also important that you have a team of professionals on your side to assist with the divorce. You should have a divorce lawyer and a Certified Divorce Financial Analyst® (CDFA®) at a minimum. In addition, it can help to have a mediator, accountant, and a business valuator. These professionals can potentially save you from making costly errors regarding your settlement, and can give you piece of mind while you are dealing with the emotions that come with a divorce.

SEVEN IMPORTANT ACTIONS TO TAKE, IF YOU ARE CONSIDERING A DIVORCE:

If you are heading toward a divorce, you will want to be financially prepared; this is not only during the divorce process but also for what comes after.

Here are seven important actions to consider if you believe your marriage is heading for divorce:

Contact a divorce attorney or a mediation attorney. Divorce laws vary state by state. An attorney will help you navigate the process and protect your assets.
Contact a Certified Divorce Financial Analyst®. Having a financial professional, along with your attorney, during the divorce and moving forward can make a significant impact on your future financial well-being.
Identify your assets and liabilities. Make a list of all your assets/liabilities: i.e. house, investment accounts, retirement accounts, cash, company stock options, annuities/ mortgage, loans, credit cards…
Pull together two to three years of tax returns. You need to be fully aware of all the income being generated by your household and where it’s coming from.
Request a credit report for both yourself and your spouse. This will help you see if there’s any outstanding debt that you are not aware of. To see your spouse’s report, you’ll need to go through your attorneys.
Reevaluate your budget. Be sure you know how much it takes to run your household, and calculate what it will cost to cover your needs and wants after the divorce..
Understand the benefits both of your employers offer. Make sure to consider how your health insurance coverage might change and what that will mean for your budget.
Make a list of items you’d like to keep. You want to know upfront how much those items will cost in the division of assets, as well as maintenance costs (i.e. house) for those things you may be awarded in the divorce decree.

KEY POINTS TO CONSIDER

Financial expertise is often missing from the divorce process
Empowerment comes from understanding the long-term results of your financial settlement from the start
Planning early is much easier than wishing you could change things later

FIVE COMMONS MISTAKES A CDFA CAN HELP YOU AVOID