Karen L. Dalmau, a certified divorce financial analyst in Torrance, answers:
Budgeting can be a challenge for any family. When you ad a divorce to the mix it can go from bad to worse pretty quickly. Fortunately, working with a financial planner who understands those needs and concerns can relieve some of the pressure of trying to do it all on your own.
To get started, you need to get organized. There are 9 categories of information your financial planner will need:
- Divorce: all settlement proposals, agreements, and judgments
- Banking: checking, savings, CD’s, business accounts, and credit card balances
- Investment: online trading accounts, IRA’s, Roth IRA’s, 401(k), SEP, and trust accounts
- Insurance: Life insurance policies for everyone in your household, disability statements, Long-Term care coverage, auto, home, and health
- Employment: most recent pay stub, stock options, projected pension or defined benefit amounts
- Tax Returns: Last 1-3 years
- Estate Planning: Will and Testament, and Trust Agreements
- Real Estate: Mortgage balances and interest rates, details of purchases, and rental income properties
- Monthly Spending: Current monthly expenses and projected monthly post-divorce expenses.
Setting up a budget is the first step towards getting yourself back on track after a divorce. Your financial plan will help you stay on track by setting a strategy for achieving your goals, and ultimately your dreams for a new beginning.