What is the Role of a Financial Advisor in Your Tennessee Divorce?
When it comes down to it, divorce is essentially about the money – how it will be divided, how much alimony (if any) or child support will be paid and whether or not one party will keep the house and how the rest of the marital assets will be divided. When the amount of marital assets is significant, it can be helpful to engage the services of a financial professional who can help the parties get a clear vision of their current financial situation, and what might happen when the current assets are divided in the divorce. A Neutral Financial Professional can be a Certified Divorce Financial Analyst (CDFA), a Certified Financial Planner (CFP), or a Certified Public Accountant (CPA). The financial professional acts as a consultant who keeps each party apprised of the financial issues that will arise during the process of the divorce. Due to their neutrality, they can help moderate the intensity level that can sometimes emerge in a contentious divorce. Given that mediation is mandatory in Tennessee, the financial consultant will work with the mediator, and if each party has their own counsel, each attorney will also work with the divorce financial professional to make sure that the perspectives of both parties are taken into consideration.
Hiring a neutral financial professional can help both parties in the following ways
- Collecting and organizing financial documents
- Valuing business interests, real estate, pension and retirement programs
- Managing debts
- Prioritize financial goals
- Create a plan for child and spousal support
- Tax planning
One contribution the financial professional can make is to help the spouse who may be a bit less financially savvy than the other get a holistic view of their financial situation. Discussions about money can lead to highly-charged, emotional scenes. The financial consultant’s neutrality may be able to help prevent these breakdowns in communication, or at least diffuse some of the energy and redirect it to more productive areas.
Following the divorce, the parties will be supporting two households at the same level of income that supported a single household. It can be helpful to work with a consultant who will take a long view and help the clients create long term financial plans for their lives post-divorce which may include debt repayment, college costs, and retirement.
So, if you anticipate that there will be a need for an outside advisor who can help guide you through the process of dividing the marital estate, and prepare your financial future, a neutral financial professional can fulfill that role on your divorce legal team.
The experienced, Knoxville divorce attorneys at the Law Offices of LaFevor & Slaughter are here to answer your questions and offer legal advice about your divorce. Please feel free to call us at 865-637-6258 or fill out our contact form to schedule a consultation to discuss the specifics of your case with an experienced Knoxville divorce attorney today.
As the Managing Attorney with LaFevor & Slaughter, Jason R. Hines handles new client consultations, strategic planning and implementation and represents clients in all the Firm’s practice areas.
As an attorney practicing law in Tennessee since 2009, Jason has represented clients from all walks of life in a wide range of cases in the State and Federal Courts of Tennessee. His practice areas include divorce, family law and immigration.