Some couples have simple divorces because they share limited property and debt or do not have children together. Others have more complex situations because they co-own real estate, have a business or shared a long marriage with many commingled assets and debts.
Review circumstances in which individuals should consider consulting a financial expert during a divorce.
Limited financial knowledge
In some marriages, one spouse manages the finances and the other spouse may have only vague knowledge of the couple’s monetary situation. This may occur if one person left the workforce to care for children, for example. In this situation, a financial advisor can help the spouse with lower income plan to establish a separate household. Otherwise, this person may have a significant disadvantage during the negotiation process.
Complex property division needs
A financial expert can help you craft a negotiation strategy for dividing shared property. A comprehensive strategy must consider the value of real estate, business interests, assets, collectibles, art and other diverse assets. People in their 50s and 60s also have concerns about approaching retirement. A financial planner can advise on the tax consequences of a proposed property division agreement.
Financial analysts can also serve as expert witnesses in divorce mediation or litigation. They provide details about the couple’s financial information to support their clients’ cases, whether negotiating a property division agreement or investigating potential financial misconduct.
Consulting a financial expert in these circumstances can help ease monetary concerns during a divorce. Some certified financial planners also have a certified divorce financial analyst credential. Others specialize in property valuation, business valuation and fraud examination.