Money Stressors and Divorce
According to a recent study cited by the Institute for Divorce Financial Analysts, money issues rank as the third leading cause of divorce in North America. This statistic likely resonates with individuals currently navigating a divorce or those who have recently finalized one. Financial disagreements can significantly strain a relationship, leading many couples to seek separation when facing challenges related to money matters.
Money stressors often play a significant role in divorce proceedings. Disagreements over finances, differing spending habits, unequal earning power, or conflicting financial goals can all contribute to marital strife. The stress of financial issues can amplify existing marital problems and serve as a catalyst for divorce. Seeking guidance from a financial professional can provide a helpful resource in making long term decisions related to your finances and divorce.
That said, not all financial advisors are equal when it comes to helping women through financial planning during and after the divorce.
Here are a few items to consider when engaging a financial advisor for help with divorce financial planning.
First, how do they communicate? Your relationship with your financial advisor is an intimate one. You will be opening up your personal life to your advisor and it is crucial that you feel comfortable and can trust your financial planner. Done right, they should become a trusted advisor to you in all aspects of your financial life and beyond. Do they ask thoughtful questions and then listen to your responses? Is there an atmosphere of caring and empathy? Do they use industry jargon or speak to me with clear and understandable language? Ask yourself, would I feel comfortable sharing my personal story with this person?
Second, do they have the right type of credentials and experience to help me? You may have noticed that the financial services industry has a wide variety of titles and designations. Some professionals that claim to be financial advisors or financial planners are in reality product salespeople. When looking for the right advisor for you and your specific situation it helps to have a financial professional that is trained and knowledgeable related to your needs. For example, I have the CFP®, CDFA® and AAMS® credentials. This means that I have received specialized training in financial planning, divorce financial planning and analysis along with investment management. If you think about it from the perceptive of doctors-would you rather have a general physician or a specialist?
Third, what type of services are available? There are many different types of services offered by financial advisors. In the past, financial advisors focused primarily on investment management. Basically trading stocks and bonds in a more transactional engagement. In today’s financial services office you will find many additional service options. Financial planning can be focused on a one time event or more of a full service ongoing relationship where all of your financial life is taken into consideration. Wealth management is also an option that includes both financial planning and investment management. Some firms will just offer investment management with no or light financial planning. We believe that financial planning works best in unisom with investment management providing an ongoing and full service experience. Our primary focus is on building long term relationships with our clients through wealth management. We also offer one time financial plans for those going through a transition like divorce, widows, inheritance or liquidity events.
Would you like more information on how Financial Planning By Design LLC can assist you with designing your financial life?
