Divorce Financial Analysis

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Due to the increasing financial complexity of divorces, those divorcing, their attorneys, mediators, or arbitrators are turning to financial planners to sort through the often complicated financial issues involved. Without close scrutiny before settlement, serious mistakes can be made and may only be discovered long after the divorce is finalized.

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Examples of Common Mistakes of Divorce Settlements:

• Incorrectly assuming that an overall 50/50 split is equitable. Tax and other consequences need to be considered.

• Retaining the marital home when it is not affordable.

• Not considering the tax ramifications of keeping and then later selling the marital home.

• Incomplete knowledge of retirement plans, stock options, and other employee benefits.

• Inaccurate information and/or calculations of child support.

• Not considering long-term inflation and/or investment returns.

• Allowing strong emotions that are present during the divorce process to skew financial reason.