A while back we worked with Tracy who came to us after her husband announced that he was having an affair and wanted a divorce. She was bitter and angry after their 28 years of marriage ended with the ultimate betrayal. She had devoted herself to the family, sacrificing her career to care for their children. Now it’s just about time to retire and her retirement dreams were shattered.
From a place of deep hurt she decided that what she really wanted was for him to pay for the rest of his life in the form of spousal support. She came to us firmly in that mindset.
During our work with Tracy, we analyzed their family assets & debts and prepared four different settlement scenarios, showing cashflow and growth of assets into the future.
In the end, Tracy decided that she would be better off financially if she took a larger share of the assets. The spousal support would have been fully taxable as income each year while her assuming the transfer of assets did not have a tax consequence.
This story illustrates the point that what you think you want may not necessarily be the best option.
Tracy came to realize that her desire for spousal support was not in her best interest while taking her share of the family assets put her in a much stronger financial position and it gave her a sense of empowerment.
Before you begin negotiating your settlement, as yourself these questions:
- Why do I want what I am asking for?
- Do I need what I am asking for?
- Would it be to my advantage to divide the family assets and debts another way?
- What will my financial situation be five years from now if I agree to a specific proposal?
- Is what you want now what you will need in five years and beyond?
Source: Divorce Financial advice, news and information by Empowered Divorce Solutions
Tesia Brooks CFP® MFA™ CDFA™ successfully completed the course material for “The Financial Aspects of Divorce”, passed the examinations and was awarded the CDFA™ designation in the spring of 2010. She has a professional financial background that spans 40 years, graduating as a Certified General Accountant in 1991 and being awarded the Certified Financial Planner (CFP®) designation in 1998. Tesia has experienced divorce first hand giving her personal insight and compassion for those who are going through the experience of divorce.