In a divorce, the parties always face new financial challenges. They have lost their economies of scale - they must maintain two residences, two health insurance policies, etc. Living costs inevitably rise, and without proper financial analysis and planning, many people find themselves burning assets or sinking in debt. Add to that the sometimes enormous cost of a legal divorce war, and it is understandable why some parties wind up in bankruptcy.
Most people are concerned not only about current finances, but also about the impact of the divorce on long-range issues, such as retirement, college education, investments and life insurance. The traditional adversary process tends to focus heavily on legal issues rather than financial analysis and planning. We believe you need both.
Our mediation process uses very sophisticated software to analyze both the current financial and tax situations of each party, and the long-range financial projections for each. A financial profile of each party is created, based on documents and information provided by the parties at our request. The idea is to spot problems (present and future) and create solutions. Our computer models can create projections for each party as far out as thirty years, spotlighting potential problems well before they occur. Financial analysis is a major part of the divorce mediation process in our office.
Major areas include: (1) options for disposition of the residence and their tax effects, (2) retirement planning, (3) tax efficient planning to fund college education expenses, (4) overall tax planning, and (5) structuring child and/or spousal support. Most of these areas have tax ramifications which require attention to minimize the tax impacts of the divorce.
Some parties want more financial analysis and/or planning than others as part of their divorce process - and some want none at all. The level of financial planning and analysis in your case will be tailored to your needs and desires.
Mr. Caruthers has a second law degree in taxation, and is a Certified Financial Planner TM .
Financial planning should be an essential part of any divorce. Contact us to schedule an orientation session.
Divorce Mediation Plus
116M Edwards Ferry Road NE
Leesburg, VA 20176-2301
Phone: (703) 777-4400
Fax: (703) 777-7266
E-mail • Map and Directions
Leesburg, Virginia divorce mediator, lawyer, and Certified Financial PlannerTM Divorce Mediation Plus serves clients throughout Virginia in communities such as Leesburg, Ashburn, Reston, Herndon, Middleburg, McLean, Fairfax, Tysons Corner, Purcellville, Round Hill, Hillsboro, Hamilton, and Lovettsville.
Loudoun County • Fairfax County • Prince William County • Fauquier County • Clarke County
