Divorce Financial Planning Process
Divorce is a multi-step process. A Certified Divorce Financial Analyst™ or Chartered Financial Divorce Specialist is the best resource for informed guidance at each step in the process.
1. Pre-Divorce Financial Review
It is essential to understand the financial implications of your divorce. At this stage we review your current family financial situation. Together we will look at assets, debts, income and expenses, then discuss any pre-marital property and review your current mortgage. Next determine if an actuarial report on pension assets or business valuation is required and consider the selling or re-financing of the matrimonial home.
Empowered Divorce Solutions helps you organize and compile your data.
2. Short and Long-Term Financial Planning
Planning for the future is an essential part of every divorce settlement. Typically, if financial planning takes place at all, it’s after the divorce, when financial planners help individuals take stock of their finances and move forward. Divorce financial planning, however, takes place at the start of the process.
We show clients the short and long-term financial impact of proposed divorce settlements, integrating the methodology of financial planning directly into the divorce process. Empowered Divorce Solutions also factors in valuable information on financial issues that relate to divorce, like tax consequences, dividing pension plans, continued health care coverage, stock option elections and much more.
Empowered Divorce Solutions shows you the long-term impact of your settlement.
3. Divorce Settlement Analysis
Your Marriage Contract will now be replaced with a new contract, a Separation Agreement. At this stage you and your spouse negotiate various options with the assistance of lawyers or mediator and a financial specialist.
Empowered Divorce Solutions brings clarity to your negotiation table.
4. Post-Divorce Financial Management
Separation Agreement in hand you can now begin your new life. For many, this is a scary time as they are faced managing everything on their own. Everyday finances must be managed, pensions and RRSPs need to be transferred, mortgages need to be negotiated, taxes need to be done and sent to CRA. The retirement plan and estate plan that you had in your marriage are no longer relevant.
Empowered Divorce Solutions helps with all of those issues and gets you on the road to financial recovery.
Services at Each Step of the Process
1. Pre-Divorce Services
- Compile, organize, and value assets
- Analyze liabilities
- Estimate immediate needs
- Prepare statements of net worth
- Develop realistic budgets
2. Short and Long-Term Financial Planning Services
- Discuss and prioritize goals
- Estimate career training cost and timeline
- Estimate future earnings potentials
- Estimate college and education costs
- Compare after-tax asset sales
- Project retirement needs
- Analyze insurance needs
3. Divorce Settlement Analysis Services
- Review after-tax proposed settlements
- Estimate maintenance needs
- Analyze long-term cash flow and net worth
- Compare and contrast settlement proposals
- Develop alternate settlement proposals
4. Post-Divorce Financial Management Services
- Oversee asset transfers
- Support and educate on financial issues
- Assist in understanding your settlement agreement
- Transfer monetary assets and property
- Define new beneficiaries
- Prepare household cash-flow plans
- Annual re-calculation of child support
- Recommend proactive tax strategies
- Prepare annual tax return
Provide new and adjusted financial plans including management of wealth, estate & retirement planning and cash flow management.