Investment Advisor News, Del Mar: The 8 Possible Financial Consequences Of Divorce And How To Avoid Them, PART 1

This four-part article series explains the many financial pitfalls associated with divorce and how women can best avoid them through careful research and the right planning.

“50% of first, 67% of second and 74% of third marriages end in divorce,” says Jennifer Baker of the Forest Institute of Professional Psychology in Springfield, Missouri.

-    Source: http://www.divorcepad.com/rate/

These may seem like terrible and depressing statistics, but they highlight just how important it is for women to make financial provisions in the event that their marriage too becomes another statistic. So, if you find yourself in a position where you are considering divorce, it is crucial that you begin making plans and doing the necessary research to equip yourself to face the impending and potentially rough financial times.

In this four-part article series, I explore, with the help of some investment advisors in Del Mar, the 8 possible financial consequences of divorce and how you can avoid them with the right planning.

Consequences of Divorce # 1: Empty Pockets

If you lamented the cost of living before, things are about to get a whole lot more expensive!

“You’ll likely find yourself dipping into your savings to foot the cost of your legal bills,” warn Del Mar financial advisors.

Then there’s the cost of moving out, getting a new place, seeing a psychologist and that exorbitant “accidental” retail therapy session at Oscar de la Renta. Divorce is not only a change of marital status; it’s a whole life revolution and money is needed to facilitate this change.

What You Should Do

If you foresee your marriage ending in divorce – whether it’s what you want or don’t want – do NOT sit about moping. You need to start squirreling away funds to sustain you through the expensive aftermath.

Consequences of Divorce # 2: Being Ill Prepared

Ending a relationship with a spouse is one thing: a single conversation that can take place in as little as an hour. It’s what happens afterwards that can take months and even years to sort out. This is why careful planning is so crucially important if it looks as though your marriage is going to end in divorce. Before you drop the figurative guillotine on your husband’s head, do some thorough research. Chat with a lawyer and your Del Mar financial and investment advisor about what you need to do and what you need to make provisions for.

Timing is also important. If your husband is due for a promotion, bonus, inheritance or raise, you may want to wait until he receives it so that you too can benefit. If you’re a few months away from the 10-year mark, patience and social security can reward you with your partner’s earning record. This may sound unscrupulous, but just as he has given up his time and energy earning that income, raise or bonus so too have you.

Whether you spent your time raising your family, tending to the house, in the office or all three, you are a team and all of your assets should be shared accordingly.

What You Should Do

Take the time to complete the things that need to be done before the financial and emotional turmoil hits at full force. While you still have access to joint funds, take the car in for a full service; perhaps get some new tires. Buy the kids the clothes they need and take them to the dentist. Book yourself a few appointments with a therapist, your financial advisor and perhaps a lawyer. This kind of planning can save you a lot of money and a lot of hassle post-divorce.

Stay Tuned for Part 2

Not sorting out your documents and overlooking assets… To read more about the possible financial consequences of divorce for women, stay tuned for the second installment of this four-part article series.

Financial Advisors in Rancho Santa Fe Explain Why the Right Financial Planning Is So Important for Women, PART 3

This three-part article series takes a look at the special financial needs of women and just why it is so important for us to make provision for our family and ourselves through smart planning and investments.

Welcome to the final installment of this three-part article series on women and finances. It has been the aim of this series to explain just why it is so important for women to be especially rigorous about making lifelong financial plans and investments.

In Part 1 and Part 2, I spoke to some financial advisors in Rancho Santa Fe who explained that it’s a consequence of the additional pressures women face as a gender that may require them to be especially careful with regards to financial planning, lest they are left without the security and stability they need to look after their families and themselves. These pressures include:

1.    Women tend to outlive men,

2.    Women tend to earn a lower lifelong income than men,

3.    More and more women are becoming business owners, and

4.    Women are almost always chosen as custodial parents.

So, typically speaking, not only do women need to survive for longer with less money, but also they are almost always responsible for the wellbeing of more than just one person. Let’s take a look at two more important reasons women should be financially careful and crafty and make a solid plan that will see them through.

5.    Women Are Working Professionals

According to San Diego financial advisors, more than half of the working population (57.5%) in professional occupations is female: think lawyers, doctors and real estate agents. These are typically financially empowered roles and with financial power comes much responsibility. It’s one thing to earn a decent amount of money, but if it isn’t managed carefully, you won’t enjoy much financial security should the unforeseen happen, for example: divorce, the death of a spouse or litigation. Asset protection planning can prove especially useful for female professionals, so speak to your financial advisor in Rancho Santa Fe.

6.    Women Have Wealth!

It’s true! Women may earn less than men over a lifetime on average, but three quarters of America’s financial wealth is owned by women, which holds an approximate value of $14 trillion worth of assets. Because of this, is it essential for women to get the right tax planning and investment advice. This wealth needs to be managed carefully throughout your lifetime and it needs to be distributed after you’re gone so that you can ensure the financial security and wellbeing of the family you leave behind.

Women are also compassionate beings. If you’re in a position of wealth, you might want to consider getting involved in some kind of charity by making monthly donations. It’s tax deductible!

In Conclusion

Women are special in an infinite number of ways and it’s because of their unique circumstances – emotional, personal, professional and financial – that it’s so important for them to become educated about finances. Whether you’re a powerful business executive, a respected medical specialist, a waitress or a stay-at-home mom, financial planning stands to benefit you and our children enormously. Consult with an experienced San Diego financial advisor about your estate, investments and finances so that you can plan the most secure, stable and successful future for yourself.

The Importance of Financial Planning For Rancho Santa Fe's Women Residents, PART 2

This three-part article series takes a look at the special financial needs of women and just why it is so important for them to make provision for their family and themselves through smart planning and investments.

Welcome to the second installment of this three-part article series on the importance of women making smart lifelong financial plans, provisions and investments. In our previous article installment - Part 1 - I talked about what some San Diego investment advisors had to say, which was that this can be the case because women tend to outlive men and earn a lower life long income. This means that women typically face the need to survive for longer with less money.

Let's take a look at the next two reasons that Rancho Santa Fe's female residents, from stay-at-home moms to affluent business executives, should be smart about their financial planning, irrespective of relationship status and income bracket.

3. Women Are Also Business Owners

Women are increasingly overstepping all historic convention and becoming entrepreneurs, ruthless executives and incredibly successful business owners, which is fantastic to see. Between the years of 2002 and 2007 alone, the percentage of female business owners in the United States increased by a staggering 20.1%. And so, in addition to the typical responsibilities of many women, which include raising a family, they are also managing and running their own enterprises.

To ensure professional and personal success, the right asset management and planning is essential as this will help to protect the long term financial security and success of their businesses and their families. You absolutely can't do it all on your own and so employing the services of experienced financial planners is really advised for San Diego residents: both men and women.

4. Women Tend To Be Chosen As Custodial Parents

When divorce happens, as it so frequently does, the children go home with the mother 84% of the time. And so, if you are a mother, whether you continue to work or have quit your job to provide your kids with full-time care, you need to have some kind of financial plan in place. A savings account, some carefully managed investments and accumulated assets can provide you with the financial pillow you and your family might need in the event of divorce or some other unforeseen circumstances.

You should also sit down and think about what instructions you would like to leave behind should tragedy befall you or your husband. How would you like your estate managed and divided between your children? If they aren't of age yet, who will look after their inheritance until they are old enough? What can you do to ensure that your children have access to everything they will need to become successful, even if you or their father isn't in the picture anymore?

If you don't know the answers to these questions, it is essential that you start thinking about it and maybe even speak to your investment advisor about it. Accidents are called accidents for a reason.

Stay Tuned for Part 3

To read more reasons why wealth managers and financial planners in Rancho Santa Fe urge women to make smarter financial plans for life, stay tuned for the final installment of this three-part article series.