Tuesday, August 20, 2013

The Biggest Mistake Clients Make Is….

The biggest mistake divorce clients make is to not consult with a financial advisor after getting their divorce.  I am not a financial expert so I don’t give financial advice beyond the basic tax/penalties of retirement transfers and alimony payments.

Some of my clients receive a lot of money when they get divorced, money that comes in different forms: alimony, child support, retirement, pension, social security, etc.

I advise every client who gets a decent amount of money out of their divorce to seek the advice of a professional.  Why would you go through the hassle of paying an attorney to get you thousands of dollars, get advised to see a financial advisor and then not follow that advice?  Why?  That is foolish!

Don’t be foolish.  Most financial advisors will talk to you for free so you have nothing to lose.  You have the ability to maximize your dollar and minimize your tax liability and penalties on the money you get from your divorce if you manage your money properly.

Take my advice.  Talk to a financial expert.

And finally, don’t plan your budget on anticipated payments of child support, alimony, etc.  If you plan your budget as though you have that money in your pocket and your ex-spouse doesn’t pay you, you will suffer badly.  Sure, you can always file for contempt but that doesn’t pay the rent or the car note.  That doesn’t prevent foreclosure or repossession.  That doesn’t stop credit companies from raising interest rates for late payments and making your debts impossible to pay off.

Don’t make these mistakes.  Be smart with your money and your budget.  Talk to an expert.  Plan your financial future as much as possible.  If you can, set up a contingency plan in case your ex-spouse doesn’t pay you what is ordered by the court.  Trust me, you will be glad you did.

Don’t make yourself dependent upon someone else fulfilling their responsibilities, especially when that ‘someone else’ is the very person you couldn’t trust or depend on when you were married to them. That makes no sense.  No pun intended.


Anonymous said...

Believe me when I say. They never do pay.

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