Divorce Money Fright

Frightened of divorce? Probably one of the scariest things about divorce is the fear of the unknown. I have had clients with high debts, low income which results in serious cash flow problems. How will they exist on one income when they have problems living on two incomes? It is a very scary topic. I walk clients through their budgets, point out missing expenses, and show them the bottom line. We then can explore their options. Some clients cut expenses, which is one of the very first and best ways of handling a negative cash flow. Together, the client and I then discuss ways of increasing income. For some, this may mean getting a second job, selling the house, or having a roommate. We also look at the possibility of maintenance, even short term or decreasing over time. Some of the worst situations are those where there is just not enough money to go around, even with all of the expense-reduction or income-increasing measures. We then may discuss bankruptcy, the pros and cons of such an action, as well as the potential timing. For most clients, however, things are not so grim. The first few years may be a bit tough, but many have said that they manged to pull through. They appreciated knowing the bottom line of their cash flow and their options be able to handle their situation better.

About wendy

Wendy W. Spencer, CFP, CDFA is a Certified Financial Planner, a Certified Divorce Financial Analyst, and a family law mediator who helps divorcing individuals, couples, and families to review and obtain more sensible settlement options. Ms. Spencer also helps these families to resolve their differences through mediation and/or participation in the collaborative divorce process. For the convenience of clients throughout the Denver metro area, Ms. Spencer has two offices – one in Arvada and one in Southeast Denver.

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