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Do you need a financial advisor on your divorce team?

On Behalf of | Sep 22, 2023 | DIVORCE - Divorce

A New Jersey divorce is emotionally taxing, and it involves more than just the separation of two individuals. It also involves separating your finances. In such times, a financial advisor can become your invaluable ally, guiding you through the financial aspects of divorce while helping you put plans in place for the future.

While different financial advisors may have different areas of focus, their main role is to provide clarity, guidance and a roadmap that helps ensure that you emerge from your divorce with your financial future intact.

Financial planning

Financial advisors help you develop a clear understanding of your current financial situation. This includes assessing your income, expenses, assets and debts. This comprehensive financial snapshot helps you make informed decisions about how to divide your finances fairly. A financial advisor can also work with you to create a financial plan that considers your short-term and long-term goals. This plan may involve budgeting, managing debt and setting up new financial accounts, among other efforts.

Property division

Dividing assets and debts is often one of the most contentious aspects of a divorce. A financial advisor can provide guidance on the most equitable way to split your property and liabilities, helping you avoid common pitfalls that can lead to financial hardship in the future.

Tax implications

Many people overlook taxes during a divorce, but they can have a significant impact on your financial well-being. A financial advisor helps you understand the tax implications of various decisions, such as selling assets or transferring property, ensuring you minimize your tax liability.

Retirement planning

Divorce can also affect your retirement plans, including pensions, retirement accounts and Social Security benefits. Your financial advisor can help you navigate these issues, ensuring that your retirement savings remain on track despite the divorce.

Per The Ascent, 60% of now-divorced women who did not partner with financial advisors amid divorce now believe doing so would have been beneficial.