High-Net-Worth Divorce: Three Reasons You Want a Financial Advisor on Your Team

1. An Advisor Can Help You Organize and Understand Your Finances

Even when couples make financial decisions together, it is common for one partner to be more involved in and knowledgeable about the details of the household’s finances. If you are facing a divorce and are unsure about what assets you have or how the divorce could affect your finances, reach out to a financial advisor. They can help you identify and evaluate all of your assets, including property, investments, and retirement accounts, to ensure a fair and equitable division.

2. An Advisor Can Provide Insight on Distribution and Rebalancing

When a couple has accumulated considerable wealth and assets, there are usually several ways to divide and distribute those assets equitably. High-net-worth individuals typically have diverse assets and streams of income, such as real estate and investment properties, retirement accounts, brokerage accounts, or businesses. A financial advisor who is familiar with divorce and property division laws in your state can help you evaluate the options available for how to divide and distribute assets. For example, one party may want to maintain ownership of the home, while the other party prioritizes asset liquidity and flexibility. Additionally, investment portfolios might need rebalancing after a divorce, depending on the final asset division and each party’s specific objectives. A financial advisor can help rebalance your investments based on your new priorities, goals, and needs.

3. An Advisor Can Help Identify Your Next Steps in This New Phase of Life

Divorce will inevitably change your financial plan and other long-term financial goals. A financial advisor can help create a postdivorce budget that reflects your new circumstances. That budget can then be the starting point from which to update your personal financial plan. Together, you and your financial advisor can review and update your insurance policies and estate plans.

Conclusion

The guidance of a financial advisor can be beneficial when working through a divorce. If you and your ex-spouse worked jointly with the same financial advisor during your marriage, you may want to consider consulting a different financial advisor when going through a divorce. Working independently with someone new will help eliminate conflicts of interest. Ask questions about your new advisor’s education, experience, and fee structure to ensure you are compatible; an independent financial advisor you trust can provide emotional support and help you stay focused on your financial objectives.