Written by: Rachael DeCosta CDFA®
Divorce can elicit a wide range of emotions, both positive and negative, depending on the individual's unique circumstances and perspective.
Common feelings that people may experience during and after a divorce are Guilt, Anger, Sadness and Panic or “GASP”:
- Guilt: Both partners may experience feelings of guilt or regret over the failure of the marriage, or over their own role in the breakdown of the relationship.
- Anger: Divorce can also bring up feelings of anger, resentment, and frustration, especially if one partner feels betrayed or wronged by the other.
- Sadness: Divorce is often associated with feelings of loss and grief, which can lead to sadness and depression.
- Panic: Divorce can be a scary and uncertain time, particularly if one partner is dependent on the other financially, and the dependent spouse has not been involved in the family financial management.
A divorce financial plan is a resource to help navigate the Panic by providing a guide to financial wellness and security. Once this is achieved, the G, A and S in “GASP” often subside.
Seven of the primary reasons to establish a divorce financial plan include:
- Financial Clarity: A divorce financial plan can provide clarity on the financial aspects of divorce, including property division, alimony, child support, and tax implications. This clarity can help individuals make informed decisions about their financial future.
- Long-Term Financial Planning: A divorce financial plan can help individuals develop a long-term financial plan that takes into account their financial goals and resources. This plan can help ensure that their financial needs are met both now and in the future.
- Cost Savings: By developing a financial plan early on in the divorce process, individuals may be able to avoid costly mistakes or settlements that don't align with their financial goals. This can ultimately save money in the long run.
- Negotiation and Communication: A divorce financial plan can serve as a negotiation tool and facilitate communication between divorcing couples around financial matters. This can help ensure that both parties are on the same page and that the financial settlement is fair and equitable.
- Expertise: A Certified Divorce Financial Analyst (CDFA®) can provide expertise in analyzing and understanding the financial aspects of divorce. They can provide guidance and support to help their clients make informed financial decisions.
- Customization: A divorce financial plan can be customized to meet the unique financial needs and goals of each individual. This customization can help ensure that the financial settlement is tailored to meet their specific needs.
- Peace of Mind: A divorce financial plan can provide peace of mind by helping individuals feel confident and in control of their financial future. It can help them move forward with a sense of clarity and purpose.
Overall, a divorce financial plan can be an essential tool for individuals going through a divorce. It can provide clarity, support, and guidance during a difficult time and help ensure a positive financial outcome.
Do you have a Divorce Financial Plan?
If not, and you are considering or in the process of divorce we invite you to reach out to us at email@example.com and a member of our Divorce Consulting Group will schedule a complimentary consultation to discuss how a divorce financial plan could benefit you.
Feel free to schedule a consult here: Complimentary Consult
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