Avoiding Financial Disaster In Divorce
Negotiate a reasonable settlement
-Put together a strong team of experts. As a CDFA™ I can make sure you will be able to live with the financial decisions you make today for both now and in the future.
“Don’t live above your means”
– Know your expenses. Create a budget on paper or ask your financial advisor for help. Reduce expenses or increase your income
Think twice about keeping the family home
– Ask your CDFA ™ whether you can realistically afford it. Have him or her show you how much more cash flow you would have if you mover to a smaller home.
Realize you won’t get everything you want in the property division
– Make a list of “must-haves” and be prepare to compromise on everything else. Don’t spend thousands of dollars in litigation fighting over a piece of furniture or personal item that may be worth a quarter of what you are spending to fight .
Protect your retirement assets
-Have a “QDRO: (Qualified Domestic Relations Order) filed as soon as possible. Make sure you have a pension (or a family business for that matter) valued by a professional.
Don’t ruin your credit history
-Be sure to close all joint accounts and credit lines you do not use soon after the divorce is final. Avoid “maxing” out your credit cards and maintaining long-term balances.