Virginia Divorce Law: The Value of a Financial Expert
Divorce is a complicated process. One of the major things you are doing in a divorce case is dividing assets and liabilities. I discuss this in more detail in another post. However, the basics are that you are dividing everything acquired during the marriage, regardless of whose name its in. For example, real estate, vehicles, jewelry, furniture, life insurance, stocks, bonds, credit cards and lines of credit.
In order to fairly divide these things, you must first figure out how much they are worth. That is where a good financial advisor comes into play. So what is a financial advisor, and why are they important for your divorce case?
Virginia Law: What is a Financial Advisor?
A financial advisor is a financial professional whose job is to help you maximize your money. Financial advisors come in all shapes and sizes, and carry different types of credentials depending on the type of client they are helping. Common types of financial advisors including Certified Public Accountants (CPAs), Certified Financial Planners (CFPs), Chartered Financial Analyst (CFA), and Certified Management Accountant (CMA).
If you have questions about what type of financial advisor is best for you, contact your bank and ask to set up a time to talk to a bank representative to learn more. It will largely depend on the amount and types of assets you have.
Why You Need a Financial Advisor During a Divorce
Lawyers are usually not also financial advisors. Lawyers and financial advisors go through different schooling and certification processes. A good financial advisor will know far more about the economic impact of keeping certain assets than a lawyer would.
The job of a lawyer during a divorce case is to analyze the facts of your case and point out the dangers and potential pitfalls of going to trial. A lawyer can also present the expert testimony of a financial advisor or other financial expert to the court.
A lawyer, in most circumstances, cannot or should not advise you on things like tax consequences of keeping certain items, how keeping certain items will impact your financial portfolio, or the advisability of certain financial ventures.
Therefore, having a team of a lawyer and a financial advisor during a divorce is incredibly helpful.
What Role Does a Financial Advisor Play at Trial?
If you and your spouse are fighting over who keeps certain property, a financial advisor can help arrange for the appropriate testimony the court needs to determine who keeps that property or how it is valued. For example, if your spouse wants to keep the stocks and bonds, it may be important to value certain other money accounts to offset her keeping the stocks and bonds. Without that financial guidance, you will not know whether that is a good or fair deal.