Contrary to\u00a0what movies make us believe, rarely does a woman meet with my firm with the goal of taking every last penny from her\u00a0spouse. Nor do we ever see\u00a0women who hide assets so they don\u2019t have to give a fair share to their soon-to-be-ex.<\/p>\n
Nearly one-third of the women who walk through my company\u2019s doors are undecided as to whether they want to stay in their marriage or leave. They come in search of answers on how to become more educated and empowered to make good financial decisions. These women are looking to gain an understanding of how their finances would shape up if they were to move forward with legal separation or divorce.\u00a0They\u2019re also concerned about how a divorce could impact their\u00a0loved ones, especially their children.<\/p>\n
With that said, it\u2019s very important that women don\u2019t let worries over their future financial standing be the determining factor as to whether or not they proceed with a divorce. My grandmother stayed in an abusive marriage because she lacked the financial knowledge and confidence to leave my grandfather, but that doesn’t have to \u2014 and shouldn’t \u2014 be the case for others.<\/p>\n
Thankfully, there are countless ways to prepare for the next phase of your life, and ensure that you\u2019re in a good place, financially and emotionally.<\/p>\n
What You Should Know About Your Finances\u00a0<\/strong><\/p>\n Before you officially decide to separate and incur what can often be a high cost of divorce, you should do your best to gain a comprehensive understanding of your household\u2019s finances. Not only will this educate you on what your finances may look like post-divorce, but it can also reveal how much you can afford to spend during the legal process. This will make you feel more prepared to negotiate and can help you walk into the negotiating room with more confidence. Think of your finances like anything else in life \u2014 when you\u2019re knowledgeable about a topic, you can walk into any discussion with your head held high, ready to share your perspective. But when you walk into that same room with unanswered questions or a lack of understanding, your confidence takes a hit.<\/p>\n Start by keeping a detailed record of all your current expenses, and try to anticipate any future ones. Then look to gather all of what you might consider \u201cfinancial documentation,\u201d including credit card statements, bank statements, retirement and investment account statements, any ledgers for loans and income tax returns. Yes, that\u2019s a lot, but take things one day at a time, and check items off your list as you\u2019re able to find them.<\/p>\n Why Women Who Are Financially Prepared Are Always Better Off <\/strong><\/p>\n From what I\u2019ve seen over the years, the women who have the most in-depth understanding of their finances (and thus the most confidence heading into divorce discussions) are the ones who walk away feeling the most positive once the divorce is finalized. It\u2019s not because they secured the biggest payouts or the most assets \u2014 it\u2019s because they were empowered to make their own decisions about what was best for their future.<\/p>\n Additionally, one asset that really helps women in the process of divorce is an emergency fund. It\u2019s one of the most important things you can have in your personal finance arsenal. Everyone should have enough cash on hand to extricate themselves from a bad or unexpected situation and get back on their feet. Sadly, most Americans don\u2019t have enough saved to cover even a $1,000 emergency<\/a>, but in a perfect world, I recommend having enough money to cover your expenses for six months, as well as any unexpected expenses you may have throughout the divorce process.<\/p>\n To best understand your finances, it is ideal to meet with a financial advisor, and it\u2019s OK to come with more questions than answers. The relationship with your advisor is a trusted one that you can rely on not just during a divorce.<\/p>\n Don\u2019t feel pressured to have all of your financial numbers down to the penny \u2014 the goal is that slowly but surely, you\u2019re gaining a better understanding of what your financial future will look like, with regard to your budget, standard of living and retirement accounts.<\/p>\n Women have the option to go through this process on their own, and for those who feel well-prepared, that can be empowering. However, as a Certified Divorce Financial Analyst myself, I find that many prefer the support of working with a professional who can help them navigate divorce-related money issues such as asset distribution, taxes and financial planning. A\u00a0CDFA is a financial professional who helps clients navigate divorce-related money issues such as asset distribution, taxes and financial planning. CDFAs can help model out how a divorce settlement might impact your finances, offering a clear view of your financial future.<\/p>\n How To Prepare For A Meeting With An Advisor\u00a0<\/strong><\/p>\n Before you meet with your advisor, I recommend that my clients try to gather the following documents:<\/p>\n \u2022 Investment account statements showing account\u00a0values, holdings, cost basis and account titles<\/p>\n \u2022 Debt statements showing interest rates and outstanding balances<\/p>\n \u2022 Property deeds<\/p>\n \u2022 Insurance policies including the declarations pages for life, health, disability and long-term care insurance<\/p>\n \u2022 Property and casualty coverage including auto, homeowner, renter, umbrella and\u00a0business insurance<\/p>\n \u2022 Tax returns from the last three years<\/p>\n \u2022 Prenuptial or post-nuptial agreements<\/p>\n If you don\u2019t have access to these documents, don\u2019t fret. You can work with your advisor to sew together the quilt of your financial picture.<\/p>\n When you\u2019re going through a divorce, emotions often run high, and with children and day-to-day life obligations to worry about, your finances may not be a top priority. However, equipping yourself with the knowledge about your specific financial situation can be empowering, allowing you to navigate the process from a place of understanding and start your new chapter.<\/p>\n<\/div>\n
![\"\"](\"http:\/\/dominiclevent.com\/blog\/wp-content\/uploads\/2017\/01\/footer-300x100.png\")
<\/a>