How a Divorce Financial Advisor Can Be Beneficial in a Texas Divorce

 Posted on April 13, 2023 in Divorce

A person going through a divorce can end up taking quite a financial hit, even under Texas community property statutes. The state uses the community property standard – dividing assets 50/50 – when it comes to the division of assets in the marital estate. Now that you are divorcing, your financial canvas is half of what it was when you were married. This is why many people going through a divorce will consult with a divorce financial advisor.

What is a Divorce Financial Advisor?

You and your soon-to-be former spouse may have consulted with a financial advisor during your marriage, seeking out professional advice on how to get the best return on your investments.

While a divorce advisor does some of the same things, they go even further in understanding and navigating through the process of “decoupling” your assets, as well. They are well-versed in financial matters surrounding the division of assets, child support, and spousal support, as well as uncovering assets that one spouse may be hiding from the other. They will understand critical factors that need to be addressed during and after a divorce that a regular financial advisor may not be aware of.

For example, there are often tax issues when a marital estate is divided and it is important for you to understand what those tax issues may be in order to prepare financially for them. Even though you and your ex are dividing assets in half, it is not uncommon for one spouse to end up with less because of the tax ramifications that their assets involved, such as capital gains on the marital home, pensions, and stock options.

How Do I Know if a Financial Advisor Is a Divorce Financial Advisor?

A divorce financial advisor will often have a certified divorce financial analyst (CDFA) designation following their name. In order to ensure you are working with a qualified professional, a good place to look for one is on the Institute for Divorce Financial Analysts (IDFA) website. Your divorce attorney will also likely have recommendations from divorce financial advisors they regularly work with.

Contact a Collin County Divorce Lawyer

If you are going through a high asset and high conflict divorce, not only do you need a divorce financial advisor to make sure your financial interests are protected, but you also want to make sure you have an aggressive McKinney, TX divorce attorney advocating for you. Call The Ramage Law Group at 972-562-9890 to schedule a confidential consultation and find out how our firm can help.

Sources:

https://money.usnews.com/financial-advisors/articles/do-i-need-a-divorce-financial-advisor

https://institutedfa.com/