Life after Divorce
Experiencing a Major Life Change
Primary goal: Finalize mediation and understand a new financial picture
The Background
Janine and her husband used a mediator to divorce after 25 years of marriage. They have two children who were 20 and 17 years old. While Janine had always been responsible for the household budget, she had yet to make time to understand the family's complete financial picture. The sudden realization of the decisions ahead led her to engage HTG. Seeking assistance while negotiations were in process allowed Janine to better understand her choices and set herself up for a successful transition to independence.
The Challenges
- Janine wasn’t sure if she could retain the marital home.
- After having been a stay-at-home mom, did she need to find new employment to support herself?
- Janine didn’t understand investments and worried about whether she would be okay in retirement.
How We Helped
Janine met with her HTG advisors, who listened to her concerns and outlined how they would work together to help her make informed decisions during mediation. This process required helping her to understand the family financial assets that would be split. As settlement options were presented, her advisors could evaluate and demonstrate the long-term impact of each to aid in the decision-making.
Once divorced, Janine and her advisors focused on her day-to-day financial picture which involved developing an investment strategy reflecting her risk tolerance for the assets she received. Her financial plan was updated to incorporate the settlement agreement, and Janine worked with her advisors to create a monthly budget.
Janine now meets with her advisors at least twice a year to review her accounts and budget.
- Evaluated and demonstrated the long-term impact of each settlement option.
- Determined Janine could stay in the house until her youngest finished high school and recommended how much she could afford to pay for her next home.
- Transferred taxable assets into her name and rolled over her share of the family retirement assets into accounts in her name with updated beneficiaries.
- Identified a globally diversified portfolio appropriate for her needs and goals.
- Outlined impact of being a single tax filer and collaborated regularly with her accountant to ensure tax efficiency and accuracy.
- Showed effect of part-time work on her financial plan, spending flexibility, and Social Security benefits.
