Today’s Question:
What financial mistakes do some make in the middle of a divorce? What do you need to keep in mind as you make a lot of decisions that impact your future?
Click on the timestamps below to jump to specific topics.
Confidence Corner
Unfortunately, divorces happen. While it’s not a fun prospect to consider nor a pleasant process, we want to address a few of the financial mistakes that can happen during a divorce.
When divvying up assets, some feel like the house is the biggest asset. Have you weighed the pros and cons? While you may be familiar with the house and it holds a lot of memories, don’t forget that it comes with extra expenses. For others, they want to sell everything quickly to get a fresh slate. But is that what’s best?
Ignoring the tax implications when looking at the different retirement accounts could cost you big in taxes. Seeing a similar dollar amount for both a 401(k) and a Roth IRA does not make those two the same in value. Calculate future values of those in order to split them fairly. If the accounts do get split, how do you make the transfer correctly?
Divorce can be a tough and emotional process. Be careful before allowing your emotions to make some long-term decisions that are detrimental for your future. How could you financial advisor help you during a divorce? There are a lot of things to consider, but an advisor might help you prioritize financially.
While divorce may not be how you saw your life going, it does happen. If it does, know that you can reach out to a trusted financial advisor to help make sure your financial plan can be addressed and headed in the right direction.
Listen to the full episode or click on the timestamps below to skip to a particular topic.
2:08 – People think the house is the biggest asset.
5:25 – What happens if one spouse makes more than another?
6:32 – How do you compare different retirement accounts?
7:25 – How do you transfer the account from one spouse to the other?
10:02 – What emotional things should you consider?
12:30 – How can a financial advisor help?
A Point Of Wisdom:
“If divorce happens, we help. There’s just a lot of decisions you have to make and everyone’s different. Everyone owns different things. There are different values for different things.“
-Nathan O’Bryant
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