Cathy Daigle, LLC

Excellence in Financial Divorce Consulting

Tools You Can Use:  a Divorce Scenario

Divorce isn't easy, but you may strive to make it financially fair.  Most divorcing couples really do want to reach settlement.  The challenge often lies within what may look fair today may not be equitable just a few years from now.

 

Divorcing couples need financial expertise.  This is not a good time to economize.  A financial professional can actually save you money by brainstorming with you about alternative settlement options you may not be aware of.

In most divorce cases, each spouse has an idea of how the property should be split. Almost 100% of the time, the couple settles somewhere in-between the two proposals. Cathy can show you the estimated financial results of any given proposal by using divorce planning software for cash flow modeling. The spreadsheets and graphs will show you pictorially how the outcome may look. This gives you an opportunity to see all of your options and to weigh the advantages and disadvantages of each proposal. These same alternatives may be just the information you need to get you back on track once the divorce is final.

 

Let's look at a divorce plan. Their initial idea:  Katie keeps the house and a portion of Sean's retirement account. Sean will get the remaining of the retirement assets thereby splitting assets equally. Sean will pay support for 5 years. Both have employment income with Katie earning about 1/3 the salary of Sean.  Does this sound like a fair settlement to you?

Their initial idea shows that within 10 years, Katie's assets are gone (including the house) while Sean's net worth has increased.

 

Using divorce planning software for cash flow modeling, you can see the estimated financial result of any proposal idea. 


The final solution shows how more support for a longer period of time helps Katie while Sean is still able to increase his net worth and meet his goals, too. 

 

Case study attributed to Carol Ann Wilson, CFDS™, a widely recognized expert on marital financial issues and a leader in the field of divorce financial planning; www.carolannwilson.com