Michelle is going through a complicated divorce. Because of the couple’s disproportionate incomes, Michelle’s divorce attorney needs financial projections to prove she needed more of the marital estate.
What We Learned
During her marriage, Michelle had not been involved in the day-to-day finances. She knew they had retirement accounts, individual accounts, and stock holdings, but didn’t understand how her husband had invested their money. She didn’t know how her taxes would get paid after the divorce and she didn’t understand how assets would turn into cash to support her and her children.
Michelle just doesn’t understand all the post-divorce “stuff” that needs to be worked out. She wants to live a simpler life going forward and wants to have someone to call and ask what to do and when. Michelle needs more than just financial projections, she needs support and a roadmap.
Understanding that Michelle was in a stressful and vulnerable position, we would be extremely response to her needs.
We would provide Michelle with guidance through each step of the divorce, letting her know what to expect – what it may feel like, where she has control, where she doesn’t have control – and walk through her options with her so she would be able to make important decisions.
As the divorce is getting finalized, we would work with Michelle to design a personal roadmap, showing her how her financial assets and income from work translated to spending plans now to support her and her children, as well as in retirement. A viable option could be a plan to wind down heavily concentrated stock positions and incorporate a more balanced investment approach in line with her risk tolerance.
Helping Michelle wrap up her post-divorce decisions, we would suggest designating new beneficiaries and establishing transfer on death on her accounts, switching her property and casualty insurance, as well as connecting her to a tax preparer and estate planning attorney.
Our mission would be to remain Michelle’s financial hotline, meeting with her regularly, and providing support as she makes important decisions that impact her financial future.
Disclaimer: Any investment strategy involves risk, including the possible loss of principal invested. Moreover, you should not assume that any discussion or information provided here serves as the receipt of, or as a substitute for, personalized investment advice from an investment professional. No part of Silicon Hills’ online content is intended to serve as a recommendation or testimonial for any investment product, service, or strategy. Additionally, the information posted is not to be construed as solicitation to offer or sell any security. To the extent that you have any questions regarding the applicability of any specific issue discussed to your individual situation, you are encouraged to consult the professional advisor of your choosing.
Our case studies are for illustrative purposes only and should not be considered as investment advice. The information provided is hypothetical in nature, does not reflect actual investment results, and is not a guarantee of future results. No reliance should be placed on any such information when making an investment decision. Information provided has been fictionalized for confidentiality. It is not known whether the listed client approve or disapprove of SHWM or the advisory services provided.