There’s a common misconception that only divorcing couples who own a lot of assets and have complicated tax issues, need help from a divorce financial analyst. This couldn’t be further from the truth. Yesterday a story appeared in the Wall Street Journal digital network where I was interviewed about a couple that I recently helped. The couple owned a home and each had a retirement account. They were concerned that there were not enough funds available for one to keep the house and the other to set up a new household. Rather than having to sell the house and divide their other property equally, we came up with a solution that resulted in both parties getting close to meeting their financial goals and objectives. You can find the story here.
Simply dividing property and debt so that each party receives 50% of each item is as unrealistic as drawing a line down the middle of the family home and expecting each party to continue living in their half. Unfortunately, dividing each asset and debt in half is exactly what happens in many divorce cases. The traditional divorce does not result in a property settlement that takes into account all of the immediate and long-term tax and financial considerations of both parties.