Going Through a Divorce Case Study
Linda met her husband in college and has been married for 35 years. They have two adult, financially independent children. She wants to be sure she is prepared for her retirement in the future from her role as a counselor.
After navigating the ups and downs of the past few years, Linda and her husband Larry realized they no longer wanted a future together.
She had not ever been too involved in the couple’s finances aside from knowing her salary and having a small pension. She’s been on her husband’s health insurance plan for years, and they own a very large house she may not want to take care of or need. However, she wants to stay nearby as her children and sister live in the area. Her sister’s son is disabled and she would like to both be nearby to support the family and, if possible, be able to help with his education and ongoing needs.
- Retool finances to make sure everything is aligned well for the future
- Wants to be educated on her investment portfolio, risk levels, and what might need to change there.
- Update legal documents
- Tax impact understanding
- What housing situation might be best
- Access to healthcare coverage
- Plan for career and retirement date
- Finding new CPA and Attorney
- Learn what insurances she may need
- See if she can still play a role in providing income and educational support for nephew
Linda would like someone trustworthy to come alongside her, help her wade through the many financial layers she’s not very familiar with, as well as help her understand investments, her financial future, tax impact on her life, and what next steps she needs to take to have confidence in her financial future.
- What assets are the most appropriate to accept in the divorce property settlement?
- If we divide our net assets in half, what can I expect to spend as a single person after the divorce?
- Will I be able to purchase a small house or condo with no maintenance?
- What investments do I have, how risky are they, and what needs to be re-aligned for my future?
- How will I get healthcare coverage and how much will it cost?
- What legal documents do I need to create or update?
- Can I continue to support my nephew’s needs?
- Can you help me find other trustworthy professionals to serve as my attorney and CPA?
When working with someone walking through a divorce, the Domani Wealth team knows it can be a very emotional experience. While we have deep technical expertise, we also care for and connect with our clients. We will focus on listening and supporting first and always.
After understanding what Linda would like to learn, would like to change, and the goals she has right now in her life, a plan with a variety of recommendations could be created. It might include:
- Outline of assets she is expected to receive in the divorce
- Detailed investment portfolio recommendations with mix of assets and personal investments
- Trust creation and other tax-efficient ways to support her nephew
- Discussion of tax impacts to her different financial accounts and assets
- Review of COBRA health insurance coverage and other options available
- Recommendations for other professionals to coordinate with
- Picture of what insurances can help balance financial risk and may be beneficial
- Review of life insurance policy
With many conversations and clear support, Linda can feel comfortable with where she is today and where she’s going.
Note: The above case study examples are hypothetical and do not involve actual Domani Wealth clients. No portion of the content should be construed by a client or prospective client as a guarantee that he/she will experience the same or certain level of results or satisfaction if Domani Wealth is engaged to provide investment advisory services. To the contrary, there can be no assurance that a client or prospective client will experience a certain level of results or satisfaction if Domani is engaged, or continues to be engaged, to provide investment advisory services. A copy of our current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request or at this link.
*Please Note: Limitations: The above is a hypothetical scenario-not involving an actual Domani client. It illustrates the hypothetical experience of a fictitious client based on a scenario that an actual client might experience. The scenario is designed to help illustrate how Domani might provide services to similarly situated clients. Keeping in mind that no two clients, situations, or experiences are exactly alike, the above should not be construed as an endorsement of Domani by any of its past or current clients, nor any assurance that Domani may be able to help any client achieve the same satisfactory results. To the contrary, there can be no assurance that a client or prospective client will experience a certain level of results or satisfaction if Domani is engaged, or continues to be engaged, to provide investment advisory services.
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