As we all know, finances are one of the biggest reasons why couples divorce. But after the decision to divorce is made, emotions tend to take over. Couples focus on how the divorce will affect their lifestyle, their children, their extended families. Each may blame the other for causing what will be most likely a messy situation. Rather than being level-headed, couple’s emotions tend to take the lead. However, as a financial strategist I try to focus on the financial well-being of all involved. The financial consequences will last forever and divorcing couples are forced to make those decisions at a time when they may not be thinking clearly.
Many couples believe that it’s easy to just sell everything and split up the proceeds.
However, that may not be the most beneficial method and can cause more hard feelings at a time they are least needed.
I have a client now that came to me for guidance. The couple owned two houses, one home residence and one rental. One partner wanted cash while the other wanted to keep at least one of the homes. After putting together our Borrow Smart Analysis, I was able to show them that they could both get what they wanted. The monthly payment ended up being just about the same as they were when they purchased the home 7 years ago and one partner received their portion of the equity in cash and the other got to keep both homes. That was a win-win situation and that’s always my goal.
In another case one partner controlled the money in the relationship and the spouse didn’t know where to turn.
We were able to meet with her and discover options. Her sole objective was to keep her children at the same high school for the next two years so they could graduate with their friends. After meeting with the client and reviewing all debts and income sources, we were were able to put together a solution that allowed her to “Borrow Smart”. She was able to afford the home on her income alone and her ex-husband was able to get the cash he wanted.
Divorcing couples tend to concentrate on their immediate needs. I want to help them plan for their future needs as well. Once a Borrow Smart Analysis is done and a solution is found it helps both parties move on with their new lives. I can help you or your clients make sense of the debt obligation and seek solutions that are mutually beneficial.