Partnering with your Divorce Attorney
Attorneys are amazing with legally advising their clients of their rights during divorce, but perhaps may not communicate as well about the financial details of the settlement or may not have time due to the demands of their caseload. Many lawyers struggle with financial details surrounding tax issues, capital gains, pensions, more complex investments and more. It’s understandable – it’s not their role! Not to worry, help is here!
It is so important to bring a CDFA® Professional on board at the start of the divorce process. Through extensive analysis, we can assist attorneys with financial items related to divorce and provide CREATIVE FINANCIAL SOLUTIONS for the marital home, splitting assets, pension calculation, alimony, business value estimates, etc.
A large part of divorce is financial, and a simple mathematical error can hurt!
For example:
My client’s spouse had unilaterally decided to file a separate tax return for a year in which they were still married. Because of the different filing status for each, the spouse got a refund of $19,000. My client had tax due in the amount of $9,500. The draft pre-trial statement suggested this refund and tax due be equalized between the parties, which makes sense. Here’s how that would look:
Tax Refund = $19,000
Tax Due = $9,500
Difference = $9,500, so each party is entitled to half of the remaining refund and would have each paid half of the balance due, meaning each party would have netted, $4,750
This is how it showed up in the pre-trial statement draft:
Tax Refund = $19,000
Tax Due = $9,500
Difference = $12,500
What?? Obviously, a mathematical error was made. More importantly, if not caught before filing, my client would not have been made whole.
This is just one of many errors I have helped uncover!
So, trust in your family law attorney to do what he or she does best: provide advice on applicable laws, conduct legal research and interpret case law and court decisions to support a position, develop a case strategy, and appear in court to defend your rights.
Trust in us here at The Financial Knot® to partner with your divorce attorney to review the financial factors in your case to ENSURE YOU ARE GETTING A FAIR AND EQUITABLE OUTCOME. After all, divorce is a major life changing event with considerable financial impacts – we have the heart and mind to help!
The Financial Knot® is another business name for Independent Advisor Alliance, LLC. All financial planning advice is offered through Independent Advisor Alliance, LLC, a registered investment advisor.
