A New Jersey divorce has significant financial implications. A financial advisor helps individuals secure a more equitable and financial outcome for the people they represent.
There are a few valuable roles such an advisor performs during the divorce process.
Financial assessment
Financial advisors conduct comprehensive financial assessments of a divorcing couple’s situation. This assessment includes a thorough review of assets, liabilities, income and expenses.
Asset valuation
Determining the value of assets such as homes, investments, retirement accounts and personal property can be a contentious issue]. A financial advisor provides educated guidance on valuing these assets. This ensures that both parties receive a fair share of the marital estate, promoting a more equitable resolution.
Tax considerations
Taxes can significantly impact the financial outcome of a divorce. A financial advisor can help divorcing individuals understand the tax implications of various settlement options. He or she may, too, recommend strategies to minimize tax liabilities, such as structuring property settlements in tax-efficient ways.
Retirement planning
Divorce often disrupts retirement plans. A financial advisor can help individuals reassess their retirement goals and develop new strategies to achieve them. This might involve adjusting contributions to retirement accounts or revising investment portfolios.
Child support and alimony
Calculating child support and alimony payments accurately helps ensure the well-being of children and the financial stability of both parties. A financial advisor can help determine fair and sustainable support arrangements based on the financial resources of each spouse.
Per the Motley Fool, more than 60% of women who divorced their spouses wished they had hired financial advisors to help them navigate the process. When a marriage ends, a financial advisor may be able to help individuals navigate the complex financial aspects of divorce.