How Will I Know that I am Getting the Best Divorce Financial Settlement?
From a financial perspective, you will definitely need to analyze any long term, after tax effects of the divorce settlement options you have. This is where a CFP® / CDFA™’s guidance and knowledge will help. We can run the numbers based on various scenarios and help you decide the best option before you sign the settlement agreement.
Your divorce settlement agreement should be very comprehensive and should cover property division, spousal and child support, when applicable. It should state who gets what asset or how the proceeds from the sale of any assets should be divided. When it comes to spousal and child support payments, it needs to be clearly stated when support payments will be made, and under what circumstances they will end. It may also specify the need for support payment insurance to ensure that payment is not interrupted due to unforeseen circumstances. This is also where a skilled divorce lawyer will be extremely helpful.
Here are some common financial mistakes to look out for:
- Accepting a divorce settlement offer just to get it over with
- Using inaccurate, misleading, or incomplete financial information
- Overlooking pension plan assets
- Terminating spousal support when a child reaches the age of majority
- Thinking that your divorce attorney will handle everything