This four-part article series explains the many financial pitfalls associated with divorce and how

women can best avoid them through careful research and the right planning.

Welcome to the third installment of this four-part article series on the possible financial consequences of

divorce and what women can do to avoid or at least offset them.

Divorce has a plethora of financial consequences and most of them are bad, especially for women who are said

to suffer a 27% drop in their standard of living, while men experience a 10% increase. The reason?

Many women suspend or don’t prioritize their careers so that

they may care for the family and the home. And so the

household relies predominantly on the income provided by the

husband. When disaster happens, the fight for financial survival

becomes a terrifying prospect for women, especially if she

becomes the primary caretaker of the children.

Thankfully, with the right planning and research – and with the

help of a good Del Mar financial planner - the stormy seas

of divorce aftermath can be tamed to make for smooth financial sailing, so let’s continue looking at more,

important advice.

Consequences of Divorce # 5: Ignoring Tax Consequences

Every possible financial decision involved in divorce comes with some kind of tax consequence that can actually

see you walking away with substantially less than your spouse! Is walking away with a lump sum better than

taking monthly alimony? Which asset would you rather have? Is it better to keep the house and live in it, or sell

it and split it 50/50? Who pays for what?

Del Mar LPL Financial Advisors

Explain The 8 Possible Financial Consequences Of Divorce And How To Avoid Them, PART 3

What You Should Do

You and your spouse should sit down with an accountant and make all the necessary calculations, making sure

that the tax consequences are taken well into account. You may want to apply for an indemnification clause to

protect yourself should the IRS come a-knocking. There’s always a risk that a past joint tax return wasn’t

entirely correct and you don’t want to be the one who pays the penalty.

Just remember this: Tax can be exceptionally tricky to work out, so unless you have an accounting diploma

behind your name, you may want to get a professional involved in helping you and your ex figure this picture

out.

Consequences of Divorce # 6: Confusing Money and Emotion

Under ordinary circumstances, it can be really difficult to prevent your emotions

from clouding your judgment. Now try to do the same with all the changes and

emotional turmoil associated with divorce!

It can be too easy to allow your emotions to drive or change your financial

decisions. It can also be tempting to confuse your lawyer with a friend or therapist.

A friend doesn’t charge you a few hundred dollars an hour to listen to your woes,

so keep your appointments short, yet thorough. Make a list of the points you wish

to cover and avoid any emotional triggers that might have you breaking down. This

way you’ll get the most out of your sessions with your Del Mar asset management firm and lawyer and

maximize what you get out of every dollar spent on professional advice.

What You Should Do

Be businesslike in your financial decisions

Don’t allow feelings of anger or guilt motivate you

Use your friends, family and therapist for emotional support

Focus on your long-term wealth and wellness

Try to keep things as professional and amicable as possible. Only lawyers benefit from nasty divorces

Stay Tuned for Part 4

Not fighting for what’s rightfully yours and mixing money and emotions… To read some final possible

financial consequences of divorce for women, stay tuned for the fourth installment of this four-part article

series.

Thanks For Reading!