Turn lemons into lemonade with NewMaker Financial’s Advocate WorkTM.

Don’t wait for the money – hiring a financial planner early in your divorce can set you up for a better financial future post-divorce.

When in the throes of divorce, finances are often the least of your concerns. Between grief, legalities, your soon-to-be-ex, and coordination on behalf of the children, financial concerns tend to take a back seat. But neglecting to review your finances with a fine-toothed comb – especially when looking at potential variations of your divorce’s asset-split – can result in costly, irrevocable outcomes. Without proper help, those financial repercussions only intensify over time. Thankfully, divorce financial strategy isn’t an undertaking you need to endure alone. By hiring the right combination of professionals for your divorce team, inclusive of a seasoned attorney, you can turn one of life’s most painful – albeit least expected – transitions into the best possible scenario for you and your family. On the financial side, we believe that your best outcomes begin by combining the knowledge of a CDFA with expertise of a CFP professional. Thankfully, at NewMaker, we’ve got both!

Understanding the Roles of a Certified Divorce Financial Analyst (CDFA) and CERTIFIED FINANCIAL PLANNER® aka CFP®

What is a CDFA?

A Certified Divorce Financial Analyst is a professional who specializes in the financial aspects of divorce. CDFAs undergo rigorous training to understand divorce-related financial issues, including asset division, tax implications, retirement accounts, and long-term financial planning. Their expertise helps individuals and couples make informed decisions that align with their financial well-being. They typically offer their services in the form of mediation, working neutrally on behalf of both parties in divorce.

What is a CFP?

A CERTIFIED FINANCIAL PLANNER® professional is a financial advisor with broad-based, in-depth knowledge of numerous wealth management topics such as investment management, retirement planning, insurance and risk management, tax planning, etc. The CFP Board requires strict adherence to their internal Code of Ethics, inclusive of fiduciary financial advice. “Fiduciary” in this context denotes the professional’s dedication to providing financial advice in your best interest.

Why Financial Planning is Critical During The Divorce Process

Many focus solely on immediate financial concerns (e.g. bills, budgeting) during divorce proceedings, overlooking the long-term impact of their financial decisions. Here are the key perspectives that the divorce financial planning team at NewMaker considers:

1. Equitable Asset Division

Dividing assets in a divorce is more than just splitting everything down the middle. Combined with the expertise of a CFP®, a CDFA helps evaluate the short- and long-term value of different assets, ensuring an equitable division that considers factors like taxation and liquidity. This analysis is completed prior to mediation.

2. Tax Implications

Certain divorce-related financial transactions, such as selling a home, withdrawing from retirement accounts, or receiving alimony/maintenance, have different tax consequences. The right financial team can help you navigate these tax implications to avoid costly mistakes.

3. Impact on Retirement

Divorce necessitates reimagining what your retirement could look like. The divorce financial planning process at NewMaker assesses exactly how the division of retirement accounts and pensions will impact your future financial security and create a strategy to rebuild retirement savings if necessary.

4. Different Types of Assets and Risk

From the more-familiar investments like stocks, bonds, cash, and real estate, to more complex investments like real estate investment trusts (REITs), business development companies, hedge funds, and more – there are costs and benefits to consider when evaluating what you might walk away with. It’s critical to know what’s in the portfolio before you agree to take on sole ownership of any of it.

5. Budgeting for Your New Chapter

After divorce, you will likely face a significant shift in your income and expenses. The team at NewMaker will help create a realistic spending plan to ensure you can maintain your standard of living and achieve financial stability.

6. Alimony and Child Support

Alongside your legal team, a CDFA can help assess fair alimony and child support arrangements based on financial projections, ensuring that both parties understand their financial responsibilities and can sustain their lifestyles accordingly.

7. Honoring the Emotional Experience

Divorce is an emotional process, and trying to make financial decisions while under stress can feel nearly impossible. The team at NewMaker will take your financial concerns – and the emotions those concerns evoke – seriously. When done right, financial planning should integrate your human experience with concrete financial strategies that make sense for who you are.

At NewMaker Financial, we understand the ups and downs of divorce. On one hand, the future you’ve always envisioned is suddenly gone; on the other, you are presented with a tremendous opportunity to rebuild and to make this next chapter your own. Let’s turn lemons into lemonade and use financial planning as a tool to get you there.

Written by: Charlene Laney, CFP® – Co-Founder and Wealth Advisor at NewMaker Financial

As a former divorce client, Charlene is committed to empowerment through education and resources. Equipped with the CERTIFIED FINANCIAL PLANNER® certification, she acts as a thought partner, guiding her clients through all of life’s financial twists and turns. She has seen firsthand how a significant life change — especially that of divorce— can put one’s view of their present and future on rocky ground. Charlene has been a valiant advocate for people experiencing life changes and has made it her mission to help them envision a brighter future – one that puts them back in control and instills hope for what’s to come.

Get in contact!

                  char@newmakerfinancial.com

                  720-440-2873

Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC.

This material was created to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. It is not intended to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation.