Aside from the emotional difficulties, divorce in Tennessee can also be financially complex. Figuring out how to proceed with separate finances can become confusing and overwhelming. A divorce financial advisor has specialized training to help you navigate the financial side of your divorce while protecting your assets and planning for your financial future.
Why you might need a divorce financial advisor
Divorce is difficult enough in so many other ways without having to worry about whether you are getting what you deserve financially. Not everyone needs the help of a financial advisor that specializes in divorces. However, even in an uncontested divorce, you might consider using one if you have any of the following situations:
- Multiple businesses, investments or other assets that involve complexity
- Lack of clarity regarding your rights and a need for assistance to ensure that you receive an equitable, fair settlement
- Significant assets and debts that need to be assessed and divided
- Assistance to structure your financial future post-divorce
What a divorce financial advisor does
Divorce financial planners have a more technical skill level than standard financial planners. However, you will find that they have experience in all financial aspects of divorce, from dividing assets to spousal maintenance and child support.
Dividing assets can trigger tax ramifications in many cases, making an equitable financial split much more complex. For example, what initially seemed like a fair division could become lopsided due to more significant tax ramifications for one spouse’s assets.
Divorce financial advisors have specific training in the valuation of assets like future pension plan payments, capital gains generated by selling the marital home and tax effects stemming from dividing other assets, such as stock options. A divorce financial advisor can also help when one spouse is much more knowledgeable financially than the other by providing the less familiar spouse with more balanced negotiating power.
How to choose the right advisor
When looking for a divorce financial advisor, ask how much experience they have working with divorce clients and whether they have any related certifications. In addition, look for exceptional listening skills, patience and the ability to provide outcomes that address each spouse’s disparate goals and priorities.
The right advisor should be able to communicate well with the rest of your divorce team. For example, while a divorce financial advisor does not provide tax or legal advice, they can coordinate with your accountant, attorney or mediator, ask questions on your behalf and provide other support and assistance.
Divorce can involve significant financial challenges, and a divorce financial advisor can help ensure objectivity and an equitable financial outcome for both spouses.
