By The Galecki Financial Management Team
Divorce is always difficult, no matter how civil the parties involved behave. Ushering in a drastic change in nearly all aspects of the couple’s lives, few legal matters are as overshadowed by emotion as divorce proceedings.
With that in mind, it’s important to understand the potential financial outcomes in divorce. Assets and liabilities, alimony, child support, tax implications, credit, insurance, and legal fees all come into play. It’s vital to remain financially intact as you head into the uncharted waters of divorce.
Melanie Colwell, CFP®, CDFA®, can help. As an Owner, Senior Financial Planner, and Certified Divorce Financial Analyst® with Galecki Financial Management, Melanie has helped women in divorce proceedings maintain their footing and gain financial independence. Always providing Fee-Only services, she’s used her fiduciary experience to craft a process for helping women get through the fiscal realities of divorce.
To that end, Melanie has created a new service to streamline her approach: the Divorce Financial Overview (DFO).
The Divorce Financial Overview
Melanie’s new service serves to clarify financial outcomes in divorce for her clients. The DFO uses proposed divorce settlements to determine the most likely effects women should expect on their money post-breakup.
Giving divorcees a realistic outlook on their financial future after such a significant life event, the DFO tool analyzes post-settlement cash flow, delivering several potential scenarios for asset distribution.
While the DFO takes certain assumptions into account, it also factors in unexpected or unpredictable events that could impact a divorcee’s wealth.
Features of the Divorce Financial Overview
Melanie’s DFO focuses on potential financial outcomes in divorce and how women can best manage their money after the transition. Some of the unique features of the DFO include:
Divorce Distribution Worksheet
The Divorce Distribution Worksheet is a document commonly used in divorce proceedings. Melanie’s version offers a comprehensive overview of marital assets likely to be negotiated, including real properties, vehicles, investments, retirement funds, savings and checking accounts, and more.
Melanie takes care to make accurate value estimations in the Divorce Distribution Worksheet, which includes a complete list of assets and liabilities, potential child support scenarios, and all the tax implications of the split.
The DFO projects how financial outcomes in divorce may emerge. It outlines projected income, budget analysis, values of assets and liabilities, insurance, emergency funds, debt repayment, and children’s educational funds, if applicable.
Melanie strives to provide a realistic assessment of projected cash flow and, as with any step in her process, offer strategies for maximizing financial outcomes in divorce.
Assumptions, Results, and Recommendations
Melanie provides a formal letter outlining financial facets of the pending divorce. This letter includes financial assumptions, a current financial summary, asset valuations, income projections, expense analysis, and tax implications.
The closing DFO letter also contains all recommendations discussed during the meeting.
Melanie offers two alternate settlement scenarios in the DFO which can be used to extend negotiations and define rational solutions to disputed items.
Cost Information Regarding the DFO
As a fiduciary, Melanie will always put her clients’ needs first. Galecki Financial Management charges only for their time and tools, never for commission.
The cost of the Divorce Financial Overview is a one-time fee of $500. This fee is typically reimbursed to the client if they opt for Galecki’s Wealth Management service within six months of obtaining the DFO.
Contact Melanie Colwell to Address Financial Outcomes in Divorce
Melanie Colwell’s Divorce Financial Overview is a key component in Galecki Financial Management’s approach to offering Fee-Only financial planning services in Fort Wayne, Indiana. To schedule a meeting, call (260) 436-8525 or email [email protected].
About Galecki Financial Management
At Galecki Financial Management, we help individuals and families confidently pursue their financial goals. We’re anything but a business-as-usual wealth management firm. We’re different. Friendly. Casual. And really good listeners. Indeed, that’s a big part of what makes us different. Everything we do is based on what we hear from you, because our experienced team of professionals specializes in comprehensive financial planning, cash flow analysis, IRA rollovers, financial services, money management, estate planning, retirement planning, and advising. We help you identify your short- and long-term goals, and then we work together to pursue them. Lastly, and most importantly, we’re Fee-Only, meaning we’re only compensated for our time. Our only incentive is to help you succeed.