Divorce is a complicated process to navigate. Dealing with the many issues involved in legal proceedings can be stressful and overwhelming. Typically, each party hires a divorce lawyer to represent them during negotiations. However, most people don’t understand the importance of hiring a financial planner or having a financial planner that you have never shared with your spouse.
It doesn’t matter whether your estate is large or small. You need a financial planner to help protect your interests during divorce negotiations. Without one, your spouse might walk away with some or all of your assets.
How a Financial Planner Helps During Divorce
You should find an experienced financial planner immediately after hiring a divorce attorney. You can avoid potentially damaging mistakes that lead to economic consequences if you have a financial advisor by your side from the beginning.
One of the most complex aspects of a divorce is dividing marital assets. You’re better off not leaving the fate of your financial future to chance. A financial planner can review your and your spouse’s assets and determine your fair share. You shouldn’t leave the marriage without the assets or personal items you rightfully deserve.
Property commonly involved in divorce negotiations includes:
- Savings and bank accounts
- Engagement and wedding rings
- Marital home and other real estate
- Life insurance policies
- Family heirlooms, antiques, and jewelry
- Retirement accounts
Why Hiring Your Own Financial Planner Is Beneficial
Your financial advisor likely worked with you and your spouse in the past to manage your marital assets. You might wish to continue working with them during your divorce proceedings because you feel comfortable with them. However, that can be a serious mistake.
Keeping the same financial planner your spouse uses creates a conflict of interest. It might make sense to allow them to handle aspects of your divorce because they’re familiar with your finances. However, they are subject to bias and might side with your spouse, potentially damaging the outcome of negotiations.
Avoidable mistakes can also occur by sticking with a financial planner you already worked with during your marriage. For example, let’s say your spouse discusses financial affairs with your advisor but never informs you of their decisions. There could be information you don’t have about specific assets since you were kept out of the loop. That means you could miss out on your fair share of those assets while finalizing the divorce.
You should hire a financial planner with no ties to your spouse. They are more likely to meet your best interests and provide a fresh perspective on negotiating the terms of property division.
Issues You Should Discuss with Your Financial Planner
You must communicate your goals clearly when you find a suitable financial planner. They should understand your preferences and what you hope to walk away with after the divorce. The most common issues people discuss with their financial planners include:
- Marital and separate property – Your advisor can determine which property you solely own and which you share with your spouse. Since Texas is a community property state, you should receive equitable shares of assets you own together. You should keep the property you acquired before marriage or receive as an inheritance or gift while married.
- Beneficiary designations – You might have named your spouse a beneficiary on your life insurance policy, retirement plan, and other assets. Your divorce attorney can assist you in modifying those documents. A financial planner will determine the best way to manage your assets for the long run.
- Budget and lifestyle – You might be used to a specific lifestyle, whether you or your spouse is the breadwinner. Your financial planner can outline your debts and financial obligations to determine your budget after the divorce. You must ensure you don’t live beyond your means and incur additional debt while adjusting to a new lifestyle.
- Investments – You could receive a significant divorce settlement from your ex. Your financial planner can advise ways of investing some or all of the funds to secure your future and avoid spending all of it too soon.
Contact a Divorce Lawyer in The Woodlands Today
BB Law Group PLLC can handle the most complex divorce proceedings. We will tailor a legal strategy to represent you effectively and meet your interests. We understand the emotional toll divorce can take, but you don’t have to go through this alone. Our attorneys can help you seek the financial assistance you need to protect your rights during negotiations.
If you’re going through a divorce and want to discuss your options for managing your financial affairs, call The Woodlands divorce attorneys of BB Law Group PLLC at (832) 534-2589 for a confidential consultation.