Emotional stress and financial stress go hand-in-hand in life. A divorce is often something nobody really plans for but is quite common in the United States. In Michigan, the divorce rate is 9% per year, which is actually below the national average of about 11% according to 2014-2018 data from Community Survey. If you are going through an annulment, just remember you are not alone. TFC is here to help ease the financial stress of the matter so you can focus on your loved ones.
Your financial situation is important. A recent Fidelity study revealed that 54% of divorcees acknowledge making financial mistakes during their divorce. Unlike a wedding or having a baby, you are often going it alone on financial matters & preparation when you separate; each party tends to look out for his or herself, which of course causes frictions.
Going through the process is not cheap or quick either, unfortunately. The average cost of a non-contested divorce in Michigan is upwards of $1,500. If it is contested, costs can be near $5,000 or more according to Grewal Law PLLC; so cash flow & liquidity is important during this time. Timing-wise, it may take up to 60 days for a final divorce decree to issue, but of course, that is often after months or longer of stressful personal deliberation on the matter. In addition to near-term cash needs, we will also want to review how your insurance situation change. You may need more or less depending on your circumstance. Managing risk is a key piece of your financial plan that we want to ensure is reviewed promptly.
If you are already feeling stressed about covering these changes, please know that it is TFC’s job to handle the financial plan issues for you. It is difficult enough to imagine creating a whole new life for yourself following a divorce. You had planned out a certain path with a loving spouse, children, a beautiful home full of memories – then suddenly everything changes. We are here to help you through the process and prepare you for what’s ahead in addition to the financial matters at hand. Women are particularly at risk following a divorce since studies show that a women’s income tends to fall following a divorce, so that is something we are particularly sensitive to as we craft a financial plan for you.
What are some good action-items you can do now if you are going through a divorce? First, sit down with us at TFC to talk it through. Also gather important financial documents such as bank statements, tax returns, safe-deposit information, and important documents related to your home. We can work with a divorce attorney to make sure accounts are transitioned properly.
Planning for the future, what can we do after a divorce? We will craft a financial plan that focuses on your new situation. Income, expenses, insurance needs, estate planning & your will, employee benefits, assets & liabilities – all of these items change after an annulment. While going through the process is difficult and something that nobody wants to endure, the silver lining is that on the other side of a divorce there is an opportunity to get on the right track financially. So let’s work as a team to make the best of it.
Here’s the point
- The emotional stress of divorce is difficult enough. Let TFC be your resource for handling financial matters through this difficult process. Divorce is actually something many people go through in life, so you are not alone, and you are not going it alone.
- A marriage annulment can take a long time and be costly. Let’s prepare the best we can.
- Let’s also make the best of a bad situation – it is a good time to implement an optimal financial plan following a divorce.
Action items
- Talk with us if you are feeling stressed
- Gather important financial statements so we can review where you stand and prepare you financially for the divorce process
- Let’s sit down & craft a financial plan for your new situation once the divorce is final. Making the most of an unfortunate situation is our goal.
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