Navigating the Storm | Why a Financial Planner is Your Anchor During Divorce
Most of us have women in our lives, whether in our immediate family or across friendships, who have been impacted by divorce. At Seven Springs Wealth Group we specialize in supporting women navigating life transitions, including divorce, through our Women in Transformation program. Led by Seven Springs Wealth Group’s Partner and Financial Planner, Jenny Wilson, CFP®, Women in Transformation seeks to empower women through financial advice and education while acknowledging the unique financial challenges that women face.
Divorce is an emotionally charged event, and amidst the upheaval, financial decisions can feel especially precarious. While legal counsel is vital, a lesser known but crucial member of the support team is a financial planner. Asset division, understanding future expenses, and planning for a single income are just some of the considerations that arise from divorce. In this stormy sea, a financial planner can be an anchor, offering objective guidance and expertise to bring clarity and confidence while working toward a secure financial future.
One of the key roles of a financial planner is untangling the web of marital finances. A planner can analyze income, expenses, assets (including retirement and investment accounts), and debts, providing a clear picture of the financial landscape. This comprehensive assessment is crucial for informed decision-making. For instance, a planner can explain the long-term implications of retaining certain assets, like the marital home, over other assets, such as investment or retirement accounts. This objective analysis allows the financial planner to work in concert with both the client and attorney to negotiate confidently toward a fair settlement.
The tax implications of divorce can be significant, and a financial planner can help navigate this complex area. They can provide education around the tax consequences of dividing assets, support payments, and potential changes in tax filing status. This proactive approach can help minimize the tax burden and reduce unwanted financial surprises that can arise in the aftermath of a divorce.
Perhaps the most valuable contribution of a financial planner is their ability to help navigate the financial realities of a new life. They can analyze the financial situation and work collaboratively to create a realistic financial plan. Examples include assessing income, expenses, debt, savings goals, investment strategies, insurance needs, and estate planning. With this roadmap and a trusted partner to lean on, clients can make informed decisions about their financial life.
Finally, a financial planner can provide invaluable support during a time of intense transition. A planner's professional guidance and reassurance can help regain control of one’s financial future, fostering a sense of stability and confidence while moving forward.
A financial planner is an important partner during and after divorce. Their expertise offers clarity, protects financial interests, and equips individuals with the tools to navigate the financial challenges of a separation. By engaging with a financial planner, one can work toward a fair settlement, create a sustainable budget, and move forward with confidence into a new future.
If you’d like to learn more about Seven Springs Wealth Group or our Women in Transformation program, please call us at 615-370-1253 or get in touch here.
All investing involves risk, including the possible loss of principal. Nothing contained herein should be construed as individualized advice and is for informational purposes only. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be suitable or profitable for a client's investment portfolio. Past performance is no guarantee of future performance.
