Case Study
Sue and James' relationship had finally reached the breaking point. After 25 years of marriage, two children and years of dealing with chronic medical issues, they decided to divorce. They had substantial net worth, so her family law attorney retained Divorce Planning Partners, to assist with the financial analysis and create financial projections.
Divorce Planning Partners started by collecting the financial discovery documents, including the completed Comprehensive Financial Statement, from the client's attorney. After completing the initial analysis of their current situation, we found that James would likely be well-off financially for life, while Sue would likely run out of money within 16 years. This is entirely too soon because her life expectancy is about 35 more years; she is age 48 today.
Some changes would be required to arrive at a more equitable settlement. In a meeting with her attorney, we determined Sue should receive about 55% of the marital assets, as well as a modest increase in the amount and duration of both child support and maintenance. With these proposed changes, James' net worth would continue to grow sharply while Sue would remain financially secure during her expected lifetime. This created a win-win scenario for both parties.
Sue's attorney was able to take this information into court and use it as a significant piece of evidence to win her a more equitable settlement. With this new settlement offer, she should be able to remain in the family home, return to college to finish her degree, and have confidence that her money will last for the rest of her expected life. Her attorney won this settlement for her by using Divorce Planning Partners' financial planning expertise.
This case study is presented for illustrative purposes only. The results from your individual situation may vary.