While there are plenty of variables that will impact each divorce individually depending on different laws and circumstances, there are some general rules that give an idea of how a divorce will affect someone financially. [Read more…]
Joe Cordell Speaks with Money Radio About How the Uncertainty of Divorce Complicates Financial Decisions
The financial complications of divorce are only compounded by the uncertainty of the outcome.
Last week, Cordell & Cordell Principal Partner Joe Cordell spoke on Phoenix’s Business for Breakfast, broadcast by Money Radio 1510, about how the unpredictability of divorce can complicate the decision-making process for planning your financial future for both clients and financial advisors.
“Financial planning and financial advice is arguably most critical in people’s lives when they are going through the divorce process because all of the planning that they had had in place up to that point is suddenly turned upside down,” Cordell said. “Then, you throw in the uncertainty that accompanies divorce because neither party knows precisely whats going to happen until the end.”
People going through a divorce are forced to make critical financial decisions through a “fog of war,” yet there is no time to postpone the choices.
This makes it imperative to receive trustworthy advice from experts to help you make those tough decisions, whether it’s from your attorney or other qualified financial analysts.
The choices you make during a divorce can have lasting effects on not only your own future and retirement, but also the future of your children.
Listen to the full audio from Mr. Cordell’s interview below:
While divorce itself is complicated, divorce with financial issues can be even more difficult.
“There can be a client who’s struggling to understand the arcane rules of divorce, and then throw in the emotional overlay of divorce, and there’s this whole set of rules and uncertainties associated with how their assets are going to be configured at the end of this process,” said Mr. Cordell.
He discussed the importance of hiring a certified divorce financial analyst. Mentioning that this type of position can be a challenging one on its own, he acknowledged that doing such a job while helping someone in a divorce can be even more complex.
During this time, clients’ emotions are high, and thought processes are not always clear, thus the financial advisor must be able to help such a client make rational decisions with his or her assets, money and future plans.
Mr. Cordell pointed out the legal obligation of hiring a lawyer who represents only one side, but drew parallels to the importance of hiring one financial advisor who would then oversee only one client’s side with finances.
Find audio from this interview below.
Mr. Cordell explained the importance of understanding financial matters during complicated divorce situations.
“It’s a critical moment in life, but it’s important to make rational decisions,” said Mr. Cordell. “In part, these decisions can be impacted by emotions and also by not getting the best financial advice.”
Mr. Cordell discussed the fact that there are certainly divorce attorneys with financial or business knowledge, backgrounds or experience, but that it’s often wise for attorneys to reach out and hire individuals who are financial experts.
On the show, Mr. Cordell was asked about issues related to splitting investments or assets during divorce. Mr. Cordell mentioned that while the agreement can be to split everything in half, determining what items go to which party can often be complicated.
“It’s critical to see a lawyer early on,” explained Mr. Cordell. “You have a professional involved then who can advise along the way. Many times, people wait too long. The party who has expert advice first has an advantage.”
Find the audio from this interview below.
During his interview, Mr. Cordell addressed many of the most common mistakes men make when facing divorce. He mentioned that for men who want primary child custody, or want to play large roles in their children’s lives, it’s often important not to move out of the house too early in the process.
“Once you’ve done that, you’re at a disadvantage,” Mr. Cordell explained. “Then, you’ve left your children in the primary care of mom. It can be difficult to get back to the place that you were before you walked out that door.”
He also discussed the disadvantages men sometimes face when dealing with family courts.
“There’s been a lot of progress in the last 20 years, I’m happy to report,” said Mr. Cordell. “But for the most part, when guys are in the family courts, they face an uphill battle for equal opportunity with custody of their children, maintenance, issues with child support…[they] are still overwhelmingly at a disadvantage.”
Find audio from Mr. Cordell’s interview with Business for Breakfast below.