How Much Alimony is Enough?
I suppose it depends on if you’re paying or receiving… But seriously, most people going through divorce know that some level of Spousal Support or Alimony is necessary, but have no idea how much or for how long. Attorneys are paid to advocate for their client. So, if you’re the payer, they’ll argue for the lowest number possible and if you’re the recipient, they’ll argue for the highest number possible. There is a better way!
If you didn’t already know, I am a huge believer in negotiated settlements whether you use attorneys or not. So, what is the right number and how do you find it? Here’s what a CDFA™ does to help. We do a full financial projection for each of you for 20 years into the future. We look at all expenses, income, assets and debts. Basically, we build a full financial plan for each of you. This financial plan reflects the settlement agreement you are considering.
Once you have that sort of information in front of you, it becomes really easy (well, easier at least) to find the sweet spot that is a win-win. We want both of you to move into the next phase of your lives with confidence that you’ll have the financial futures that you envision.
Most divorcing people don’t want their former spouse living under a bridge or in in a cardboard box, but they are fearful of what their own financial future looks like. Once we can show the payer that their future looks bright (their net worth and cash flow are on a positive trend) when they pay a certain level of maintenance, they’re far more likely to reach an agreement. Don’t spin your wheels trying to convince the other side you’re right without the numbers to back you up! Give us a call. We’re here to help.
About the author:
Bev Banfield is a CPA, Certified Divorce Financial Analyst®, and founder of Banfield Divorce Financial Advisors. The Denver-based company was established to help divorcing couples more easily and equitably separate their finances. Banfield has more than 30 years of experience in financial analysis, budgeting, and auditing. Contact us for more information at (303) 482-1726 or firstname.lastname@example.org. Connect with me on LinkedIn https://www.linkedin.com/in/bbanfield/