When is a 50/50 divorce settlement not really equal?

In many divorces, former spouses split their combined assets down the middle. But because of market trends, taxes and other factors, the ex-wife often ends up with the short end of the stick.

“Conscientious divorce attorneys want equitable outcomes for their clients,” says Sven Buncher, Managing Partner of The Buncher Law Corporation. “And achieving that often requires a more in depth analysis of the divorcing couple’s assets.”

Sven Buncher is among the attorneys who are now partnering with financial advisors to develop more accurate asset valuations.

“This arms us to work toward a fairer division of assets, for our women clients in particular,” says Buncher.

Divorcing women are often at a disadvantage because their spouse may have a greater knowledge of business and finances, says Leslie Calhoun, Chief Investment Officer of Optivest Wealth Management, a family office and advisory firm in Dana Point, Calif. A knowledgeable financial advisor can help to even the odds, she says.

“A more sophisticated analysis of asset values can work in the woman’s favor,” says Calhoun. “And when fairer settlements are integrated into a forward-looking financial plan, it can help her move ahead with much more confidence.”

A qualified financial advisor can bring a range of benefits in the divorce process, including:

• Market perspective. Divorcees who “got the house” in 2007 lived to regret it, as many of them soon found themselves owing more than the value of the home. Whether it’s a house, shares of stock or piece of art, a financial advisor can help determine whether its value is likely to rise or fall due to economic conditions and other trends.
• Tax analysis. Cash raised through the liquidation of assets such as appreciated stock shares are often subject to significant taxation. Advisors can provide a careful analysis of the assets, their potential for appreciation, their tax implications and the timeframe for their liquidation, to provide a more accurate and useful valuation.
• Unemotional financial advice. Women often form emotional attachments to homes and other assets. But a large home with significant mortgage payments, taxes and maintenance costs can quickly end up being burdensome. An experienced financial advisor can give a “hard talk,” using factual arguments to help women make smart decisions.
• Helping find assets. High-earning spouses who generate their income through commissions and profit-sharing plans can use a variety of tactics to hide or delay the receipt of assets. A financial advisor can help to open up discussion of possible hidden or delayed income and assets.
• Financial planning. Women who have not been breadwinners often don’t have a firm handle on taking charges of the household finances. Advisors can provide a personalized financial plan that helps clients identify goals, and incorporates settlement assets, alimony and other wealth to meet those goals. A financial plan provides a path forward for divorcees just when they need it most.Divorce attorneys like Buncher are taking the extra step of encouraging their clients to retain financial advisors so together they can select the best portfolio of assets for that particular client.   Better outcomes lead to positive word of mouth, which is a valuable commodity for attorneys in a field where client referrals are a prime source of new business.

“Clients appreciate the extra care we show for them just by being thoughtful enough to recommend an alliance with a financial advisor to optimize results.   Clients that realize we are passionate about them, in turn feel passionate about us and pass the word. That creates a win-win relationship for us and our clients.”

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