What Is The Value of A Financial Professional During Divorce?

credit: Nick Youngson

At the beginning stages of divorce, many individuals believe that the first step is to seek out the advice of an attorney. While understanding the law and the possible financial outcomes of asset distribution, alimony, and child support is a vital part of the divorce process, equally important is knowing the current state of your finances.

In my coaching practice, I never tire of emphasizing the fact that divorce is truly a team effort. Having the right emotional and mindset support, coupled with good legal counsel is one aspect of a successful divorce outcome.

Equally vital, from the beginning of the process is expert input from a financial advisor in order to secure a clear picture of your current economic situation. Not only will this empower you to know where you stand from day one, but armed with  a professional overview of your financial position during an initial legal consultation will facilitate a better understanding on the part of the attorney and more informative answers for you. 

What is a Financial Professional?

A financial professional's job is to look at a client’s entire financial picture, which includes cash flow, estate planning, taxes, investments, and insurance - and to advise them on how to achieve their short and long-term financial goals. 

Value of a Financial Professional During Divorce

​When it comes to divorce, working with a financial professional can help you understand the true value of your assets, including real estate, investments, and retirement accounts, in order to enable the negotiation of a fair settlement based on the true value of your assets.  

According to Adam Minker*, Forest Hills Financial Group, "I am of the opinion that it takes a team to work with a client, where experts are able to help mitigate exposure, especially since each person's situation is unique and there is no cookie cutter plan."  

Minker goes on to say "It's important for divorcing individuals to encourage collaboration between their divorce attorney and financial professional. This will enable attorneys to negotiate better on their client's behalf and safeguard the client's best financial interests post-divorce.

What is Most Needed At Each Stage of Divorce 

Each stage of the divorce process is nuanced with different issues. Financially speaking, clarity and understanding are the best way to protect your interests now and in the future.

Here are some important factors for your financial wellness when contemplating, going through, and following divorce. 

​1. Prior to Divorce - Contemplating

It's always a good ideal to get a sense of where you stand financially prior to embarking on a major life change like divorce.  "This will not only help when meeting with your divorce lawyer to have a full sense of where you are financially, but will also give you some insight into the documents that will be needed during divorce, and which ones need updating after you've filed and then following divorce," according to Adam Minker. 

These documents may include tax returns for past 2-3 years, power of attorney, w2's, asset list and possible valuations, trusts (revocable/non revokable), 401K and monies invested in stocks, bonds and other, beneficiary information, life insurance and your last will and testament. 

Be sure to check with your attorney as to which documents can legally be changed before divorce, before taking any action. 

During Divorce- After Filing

At this stage, your financial professional can serve you best by being available to work with your divorce attorney and other members of your divorce team to ensure that all negotiations reflect their input for the most robust agreement possible.

While attorneys are experts in the law and represent you in negotiations with the other side, as well as with the court, they can do their job best when they are supported with as much vital information as possible. This includes any financial strategies for your well being post divorce which you have put together with your trusted financial advisor.  

"This is why it is critical to work with a financial professional with proper resources and the ability to help restructure a financial future that encompasses your life goals so they can create a plan  that meets these needs," says Minker.

One of the tools that Minker's team uses is a Living Balance Sheet, a proprietary means that gives their clients the opportunity to structure and restructure their financial present and future as well as functioning to ensure proper life long protection.

Post Divorce - Divorce Agreement Filed

Once your divorce agreement is finalized and filed, you are now free to begin moving forward with your life.  By this point, you will know what assets are yours so you can take the next steps with your financial professional to implement the strategies discussed during the divorce process so you can secure your financial future. 
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- Elisa


* Disclosure
Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. Forest Hills Financial Group is not an affiliate or subsidiary of Guardian. This is for informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. Guests and their firms are not affiliated with or endorsed by PAS, Guardian, or Forest Hills Financial  and opinions stated are their own. Guardian, its subsidiaries, agents and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. 2024-171772 Exp 03/24