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Advisors, Your Clients Don’t Think About These Things When Getting Divorced

  • By Robert D. Bordett, CFP®, CDFA®
  • |
  • November 6, 2018

Financial issues are a big part of the difficulty of divorce, in part because people don’t realize there are certain contracts that take precedence over divorce decrees.

In fact, that’s the number one misconception that people seem to have. Being able to identify financial issues can help take away some of the pitfalls and stresses that can arise during the divorce process.

Advisors, we suggest you help clients evaluate post-divorce cash flow and put together a detailed spending plan.

When Clients are Divorcing, Consider the Following:
  • Investment portfolio. Your risk tolerance may have changed.
  • Insurance coverage. Check on the amount you have for life, long-term care, and disability insurance. Also check to see who the owner and beneficiary are of the life insurance policy.
  • Charitable planning. Do existing charitable trusts still match your goals?
  • Estate plan. Make sure your Will, Trusts, and Guardian information is current.
  • College planning. Cover the bases for all minor children.
  • Power of attorney (Durable Power, Health Care, Living will, HIPAA Authorization, etc). Consider who you want in this role.
  • Retirement and gifting plans.

It’s important to remember that a divorce decree does not take precedence over legal documents such as IRAs, Qualified Retirement Plan (401K, Profit Sharing, etc, that need a QDRO) Annuities, and Life Insurance.

Contact us if you find yourself with questions related to your financial well-being during and post divorce.

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Author Bio

Financial advisors face few challenges as emotionally charged and potentially difficult as clients trapped in family conflict. Just ask Robert D. (Bob) Bordett. Whether it’s marital separation or divorce, the care of elderly family members or death and estate settlement, an advisor’s knowledge of a client’s finances is never enough; industry professionals must be able to help families set conflict aside, seek agreement and preserve valuable assets. A Certified Financial Planner and Certified Divorce Financial Analyst, Bob Bordett has devoted much of his career guiding couples, families and business partners through difficult situations to arrive at fair and practical solutions. As Senior Vice President of Atlanta’s Consolidated Planning Corporation, Bob specializes in mediation, collaborative divorce, divorce planning and financial planning. He maintains a private practice, Collaborative Practice and Mediation Services, Inc., applying Alternative Dispute Resolution methods while serving as a financial neutral. Bob is also a Registered Mediator and Arbitrator with the Georgia Commission on Dispute Resolution. A recognized expert on financial issues impacting divorce, Bob has published widely, appeared on CNN, spoken at a variety of conferences and led seminars across the country. He has held leadership positions in a number of industry associations including the International Academy of Collaborative Professionals, the Institute of Certified Financial Planners and the Family Mediation Association of Georgia. He is a founding member of the Academy of Professional Family Mediators and serves on the board of the Professional Mediation Board of Standards. But perhaps most importantly, Bob brings genuine compassion, commitment and a desire for positive outcomes to every client’s unique circumstances. Bob frequently partners with Marsha Schechtman, LCSW, who brings a deep understanding of family dynamics plus expertise in communication strategies to her work. For a representative list of Bob’s speaking topics, please visit the Speaking page under the Services section.