Financial planning divorce or marriage?
Will I be OK Financially? To Leave or Not to Leave...that is the question!
Financial planning divorce tips:
Divorce or marriage ?
Your marriage is less than perfect. Looking in from the outside you appear to be the happy little family. Truth be known you are living a quiet life of desperation. You might have been doing this for months or even years. Even worse you are a victim of domestic violence. If that is so, get professional help NOW!! One ladies comment to me once was “We are worse than roommates. We’d as soon poke each other than look at each other, let alone share our heart and soul. But I am afraid of what separation or divorce will look like. I need help to understand how I will be financially.”
As a financial planning divorce expert, I've seen this all too many times...
What are you afraid of? It may be several things, but in our society, almost everything you do is around money. Your fear may be even greater because you were not the one who handled let alone understand the finances. The money or income needs to support a lot of issues. Number one, the children need to be financially supported. The law has set out specific guidelines for that. It may also be needed for spousal support issues, where the law can be grey. Then there is the aspect of splitting the assets and potential tax implications. What does all this really mean? Will you be OK financially?
One of the first steps is getting real about the Cash Flow. Where is it coming from? Will there be any changes in the future? You may need to go back to work, work more hours, upgrade to get a better paying job. You may even find that there is one of you who need to cut back due to health. But don’t kid yourself; there are games that get played too. Being aware of some of the WHAT IFS can be enlightening.
Always remember when you were together there was one set of expenses, however once you are apart there will be two sets of expenses but still often the same income. You may need to get your head around a changed life style. It may prove prudent to ask: “What does your BUDGET look like? What changes are you willing to make?”
You also need to be aware of how you will handle the fact that someday the payor of support may retire? They may also legitimately get an illness or worse yet die. Then what? This is where insurance can be a helpful comfort, if you are expecting support payments. Do not overlook the statistics in this area. Work it into your budget.
Financial planning divorce questions to ask yourself...
Looking at your Net Worth is key to your future. How much is available to create an income? What kind of assets are they? An RSP verses a pension verses cash from a sale of the house all have different outcomes and futures. To cover your Needs, Goals, Wants how much of “the pot” of money will you need?
Will you be responsible for some debt, at the end of the day? Can you really afford to keep the house? Better yet, can you qualify for a new mortgage? How is your credit rating? Or did it get trashed in the heat of emotion?
For example, you end up with $500,000, after agreeing to sell the house. You have the option to retire at age 60. There will be no more support, as the kids are adults; older spouse is planning to retire.Truthfully, it will depend on many factors. Will you buy a home? Use debt? How is your credit rating?How long do you think you will live? Age 90 perhaps. How much can you save from now till retirement? Are you expecting an inheritance? Even if you could keep the whole $500,000 to use to fund your retirement with a 5% return, that would only pay out 25,000 per year. How much CPP, OAS etc. will yoube expecting? Is this enough for your life style? Are you willing to make a change or make the move?
Life is about choices. There is no right or wrong when it comes to planning. But would it not be nice to KNOW what you are getting into or out of??
Financial planning divorce expertise can be so helpful in this difficult time.
A Certified Financial Planner & Financial Divorce Specialist can help you with all these questions, implement your plan and work with you into your future.
Get educated. Don`t be afraid to ask for financial planning divorce help. You owe it to yourself, your family and your future!