BKM Wealth Management is among the few practices in the Milwaukee and Brookfield area with a Certified Divorce Financial Analyst® on staff. BKM’s advisors have years of experience and extensive knowledge in the complex financial issues affecting clients in the midst of a divorce.
The participation of a Certified Divorce Financial Analyst® (CDFA®) during the divorce process can improve the process and outcome. While BKM Wealth Management wades through the financial paperwork, the attorney’s time can be better spent focusing on the legal issues, drafting petitions and preparing arguments for trial.
BKM Wealth Management works alongside family law attorneys as a collaborative member of their team. We provide support with the financial aspects of case preparation and help individuals going through divorce understand the long-term impact of any property division and maintenance arrangement. For example, we can help organize financial documentation and assist in preparing the Wisconsin Financial Disclosure Statement, complete with supporting exhibits. We can also perform a Lifestyle Analysis and help create a post-divorce budget, so that attorneys and their clients understand how the divorce will affect an independent life once the judgment is entered, and so that these figures can inform maintenance and child support discussions.
Other services we provide are more analytical. Because Wisconsin is a marital property state with a presumption of equal division of the divisible estate, careful identification and valuation of assets is essential. BKM Wealth Management will help distinguish divisible marital property from property that may be excluded, such as gifts and inheritances, document the cost basis of each asset, and analyze the tax consequences of selling it. We will review and analyze retirement accounts and pension plans, including Wisconsin Retirement System (WRS) benefits, and advise on their terms, features, and division through a Qualified Domestic Relations Order (QDRO). We can compare competing settlement proposals and evaluate the long-term impact of each on future financial well-being, both for negotiation and for the Marital Settlement Agreement. We also prepare clear exhibits and visual aids, including easy-to-read graphs and charts, that attorneys can use in negotiations with opposing counsel, in mediation, and at hearings before the family court commissioner or the circuit court.
One of the first things you’ll want to do is take a financial inventory. Collect all your financial information and obtain copies of important financial documents, such as tax returns and bank records. Even if you anticipate an amicable resolution with your spouse, being prepared will mitigate unnecessary stress and could lead to a more complete resolution of the issues.
Typically each spouse will be required to complete a financial affidavit and file that document with the court. These documents typically list each spouse’s income, expenses, assets, and debts. Getting a head start on this inventory will help your attorney do his or her job and ensure that nothing is overlooked.
Your divorce decree may mandate child support, alimony, or life insurance on one of your lives for the benefit of the other or for your children. Other than these requirements, it is generally a good idea to disentangle yourself financially to reduce your liability.
Contact lenders and make sure all joint credit cards have been canceled and new ones have been issued in your name, or your spouse’s name only. Otherwise, in many states, your liability for your ex-spouse’s bills will continue. (This may not be applicable in Wisconsin – a marital property state.)
Make sure that any documents required by the divorce decree are completed. Car titles may need to be changed; property deeds and qualified domestic relations orders (QDROs) may need to be drafted – do not wait to get these things done.
The divorce may have taken its toll on your hard-earned retirement savings. If that’s the case, you may want to increase the amount of income you put aside (especially if you hope to retire on schedule). If you’re not already doing so, this may be a good time to start making maximum contributions to your employer-sponsored retirement plan and your own IRA. Review your financial plan with a BKM Financial Advisor.
Review your estate plan with a BKM Financial Advisor and your attorney. This is especially important if you have children or other dependents. Following are some important steps you can take:
Even after the divorce has been finalized, there are a number of things you should do to protect your financial future. Contact a BKM Financial Advisor to create your new financial plan.
Once the divorce is finalized, they are available to continue to serve as personal financial advisors. They can open new accounts and arrange for the transfer of assets after equitable distribution and a Qualified Domestic Relations Order. They can complete a comprehensive investment plan which is designed to help envision a newly independent life. They can manage investment portfolios and offer guidance to make more informed choices.
If you are thinking about divorce, or are already going through this difficult process, please call BKM Wealth Management for a consultation. If you have already arrived at a settlement, it’s never too late to develop a financial strategy for your future. By working with them you can increase your chances of arriving at a settlement that fully addresses your long-term financial needs, so you’re much closer to a better tomorrow!