Divorce Planning
Divorce Planning is a specialized service offered by Bloom Financial Planning. We can can help you make the best decisions for your financial future by providing you with the necessary tools and strategies to navigate the complexities of divorce. Our services include divorce financial planning, asset analysis, income planning, MDA review and consulting, tax review, partnership and value analysis. We are here to help you make informed decisions throughout the entire divorce process, and can work directly with your attorney to maximize time efficiency and accurate information sharing
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If you are unsure about the value of Divorce Planning for your situation, please keep reading and follow along with this case study that shows what you may be missing out on in the future by settling on what you think you want right now.
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Matt and Jessica are both 51 years old. They have been married for 26 years. Matt is a Sales Manager and makes $120,000 annually. Jessica worked as a teacher during the early years of their marriage, but left the workforce to devote her time and attention to raising their twins, now 21 years old and in college. Jessica has stayed active in the local community and though she does not have the current licenses to begin teaching again, she feels that she could work part-time and earn about $25,000 annually. She would like to stay in the home and continue to be involved in the community.
Initial Offer:
Jessica will own the house ($150,000 equity) and $50,000 of cash savings. Matt will get the remaining $200,000 cash savings, thus dividing the assets equally. Matt will pay alimony of $5,000 annually for 5 years.
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Within 6 years Jessica’s assets are declining (even her home equity) and she is facing a severe cash shortage. Jessica is now 57 years old and will have to return to work full time, which means renewing her certifications and updating her resume. She has no retirement savings. Matt’s net worth continues to climb. He has spent the last 20 years building a professional reputation and receives annual raises and bonuses, as well as annual stock options, matching 401(k) contributions, and health insurance through his employer.
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We can use our sophisticated Divorce Planning Software and an in-depth analysis of all of the assets in the marriage, including property, retirement accounts, investments, and cash savings to highlight the tax and financial implications, and present a more equitable financial scenario in which both parties will prosper.
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It has been our observation that women tend to prioritize the present needs of the family, i.e. keeping the home, maintaining the "norm" for the sake of children, protecting the assets of the children. Any time a partner in a marriage has taken time away from the workforce for any reason, they will be more vulnerable during divorce proceedings. We will ask the questions you may not even know to ask, and help you know what options you have to protect your future.