By Aviva Pinto, CDFA – Guest Blogger
“It’s not fair!”
I hear that a lot from clients. One client had collected artwork with his wife. They had pieces they had bought together and he loved. When they divorced, he was made to choose between some of his favorite pieces. It is not fair he told me. I loved that artwork.
One client had a dream of moving into a new apartment in the city when their kids were in college. She had moved to the suburbs and stopped her career to raise their kids at her husband’s insistence. When the kids finally got to college age, the husband wanted a divorce and moved into the city with his girlfriend. It is not fair she told me. That was our dream. Now only he gets to do it.
Life is not “fair”. But in New York, divorce IS equitable.
Equitable doesn’t always mean a 50/50 split. When property is divided in marriages there are a number of considerations: length of the marriage, wealth, earning potential of each partner, difference in age, health of the partners involved, children, the ages of the children.
A divorce financial planner can help you understand what is marital property that can be split and separate property that cannot be divided.
One client had an emotional attachment to their large beautiful water front home. They had built it together and it was a masterpiece. The problem was that there was a very large mortgage associated with it, large annual taxes and high maintenance costs. It is not fair, I put my heart and soul into that house. However, without their very high dual income, keeping the home was not an option.
When marriages break up, the costs can double. Each partner needs a place to live, each has utility and maintenance costs. They are splitting assets that don’t always cover twice of everything.
A divorce financial analyst can help with
- obtaining complete information on all retirement plans, employee benefits and stock options, valuing retirement assets and non-retirement assets,
- considering the long term impact of the financial settlement,
- assessing the cost basis and tax implications of assets.
- helping you gather all the necessary data to determine your income, expenses and budget.
- doing a lifestyle analysis and a financial plan to figure out how much you have, how much you can spend, what you should invest and how long it will last.
- helping you plan for the future.
In divorce, there is a lot that is unfair.
- You can be married for twenty years, and then all of a sudden your spouse no longer wants a future with you. You want to know what you did. Why did they wait so long to tell you they weren’t happy?
- It is hard and it hurts.
- You have to grieve your loss the best way you can and move forward.
The best way to move forward is to understand how you are going to live. Divorce may not be fair. Your best defense is to be Wise and Practical.
AVIVA PINTO, CDFA™, Director Highline Wealth Management
Aviva Pinto is in charge of portfolio management and client services at Highline Wealth Management in New York. She has been in the business for over 25 years and works with divorcing clients to help them feel more secure about their financial future.
