Going through a divorce is generally a stressful period. While emotions are running high, daily financial obligations must be met. At least one spouse is often concerned about their financial future. Some stress can be alleviated with the help of an accounting specialist who can help the couple achieve a more amicable divorce with both parties feeling the asset division was fair and equitable.
Benefits of Consulting with a Financial Professional
A financial professional works with the couple and their attorneys to help them achieve their individual financial goals for their future. Ways this is done include:
- Collecting all relevant financial documents.
- Educating the spouses about their current financial situation. Often, one spouse knows more about the finances than the other. The financial professional can educate that party that does not have the information and explain to them the tax returns, bank statements, investment statements, and other financial documents.
- Determining the financial goals of each party.
- Helping each party put together realistic budgets for their future after the divorce.
- Determining the lifestyle goals of each party and helping them determine if that is really what they want and if they can afford it.
- Discussing investments.
- If relevant, discussing the cost of the children’s education.
- Evaluating whether the family home needs to be sold or if one party can remain in the home and buy out the other’s interest.
Types of Divorce Financial Professionals
There are different types of financial specialists that can help guide the parties through the divorce process. Some include:
- Certified public accountants (CPAs). CPAs are well versed in various tax implications, vesting periods of stock options, retirement plans, and similar issues. Although attorneys are often well-versed in tax implications, CPAs are generally able to get to the nuts and bolts of the financial statements faster than attorneys can. Couple this with the CPA charging a lower hourly rate than the attorney, and it is common sense that using a CPA saves money in the long run.
- Financial advisors. These specialists are good at helping the parties with budgeting and forecasting what their financial portfolios will look like 10 years down the road.
For more information about how using a financial professional in your divorce can benefit you, contact Heberger & Company, an Accountancy Corporation.