Tim and Betty Purcey are 45 and 40 years old, respectively. They have been married for 10 years. They have four children – Susan 9, Sharon 7, Steve 4, and Sandra 2. Recently Tim asked for a divorce from Betty due to marital differences on household finances and raising the children. Tim and Betty had agreed that Betty would stay home to take care of the children while they were in primary school. Later she would go back to work. Prior to marriage Betty was an elementary school teacher. Today Tim owns a government consulting firm that has annual revenues of $2 million a year.
Early on in the divorce proceedings, Betty engaged our Certified Divorce Financial Analyst to understand what financial assets there were to split, the financial and tax impacts of dividing the assets, and how spousal and child support would impact her now and in the future. Our team worked closely with her and her attorney to assess her situation and advise both of them on the financial impacts of their decisions to help Betty reach a fair and equitable settlement. Over the course of our work, we modeled different strategies for dividing assets as well as for spousal support arrangements. We also advised on the creation of an installment note as a way to equitably divide an illiquid investment (the business).
At Horizon Ridge Wealth Management, we understand divorce can get messy, and for that reason we seek to remain completely neutral. Throughout the process, we do not favor one gender, socio-economic background, or other discerning perspective over another. Our primary objective is to counsel our clients and their attorneys on the financial impacts, both present and future, of the decisions they make. We believe we are an integral partner in the divorce process and will work hard to aid you and your attorney in finding a mutually agreeable financial resolution.
This material is hypothetical in nature and not intended for use as investment advice. It does not guarantee the attainment of your retirement goals. Individual results may vary. There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Asset Allocation and diversification do not ensure a profit or protect against a loss. Past performance is not indicative of future results.