GET A SMART DIVORCE
How our Nashville, TN Divorce Consultants Can Help

Do you want to get a financially smart divorce? Then let Arons & Associates (Nashville, TN) assist you. We collaborate

Going your separate ways? Make sure your financial plan provides sufficient funding so you are on track today AND tomorrow.

with you and your attorney or mediator to ensure your thorough understanding of the ongoing financial impact (costs) of all Tennessee divorce settlement options. Our ability to demonstrate multiple scenarios for the division of property (including the impact of after-tax and other consequences two, five... or twenty-five years ahead) is critical to your ability to make informed decisions concerning property settlements. Evaluating the long-term financial impact is imperative. What looks like a fair deal today may not be and you may not know it until years from now. Did you know that the long-term consequences of dividing assets and the financial implications / costs of divorce are one of the four most common factors leading to bankruptcy? Additionally, divorced single mothers are the group most likely to file for bankruptcy. We want to help you understand the numbers and financial issues before you sign your divorce paperwork. We want to help you get a financially smart divorce by providing you with sound financial advice.

Request a consultation with a financial divorce advisor.

Visit our divorce planning services page with a financial divorce advisor.

DOES AN ATTORNEY PROVIDE ALL THE ADVICE YOU NEED?

If you are reading this, you are probably in the midst of a divorce in the state of Tennessee. That is unfortunate. The emotional rollercoaster of divorce is brutal. The cost and financial impact can be even more devastating. Take the time now to understand the numbers before you sign your divorce papers. If not, you may be forced to deal with a financial crisis a few years from now.

Divorce is not simple. A competent Nashville attorney knows the law and is an expert in legal issues. Setting the emotional issues of divorce aside, it is a business transaction. Law schools don’t teach business or financial issues. And the financial aspects of divorce are not the responsibility of your attorney.

Some attorneys do understand complex financial issues but can they help you calculate your monthly expenses, evaluate a pension plan/stock options, or know the tax “sink holes” of divorce? The legal and financial aspects of divorce are separate, full-time jobs. Our firm specializes in the financial issues of divorce. Our advisors are here to work with your attorney/mediator to help you in many areas including reducing your costs and getting the mostvalue from your legal fees while reaching an acceptable settlement.

Have a Tennessee divorce question or want more information? Request divorce advice. We will gladly answer any financial questions you have relating to divorce, separation, settlements, or child support.

THE 10 MOST COMMON MONEY MISTAKES IN A TENNESSEE DIVORCE

1. Underestimating your monthly expenses. You should make a complete monthly budget that includes cost-of-living increases for the duration of alimony. Each year the costs for the utilities, groceries, lawn care, health, and home insurance increase. If you don’t consider cost-of-living increases, your alimony probably won’t cover your expenses after the first year of divorce. If you are the husband, you need to know your correct expenses also including cost of living increases, or you may agree to alimony that you cannot afford.
   


2. Believing that your attorney will handle everything. Attorneys are trained to handle the legal issues. Even the best Nashville divorce attorneys are not certified financial consultants and were not trained to perform financial analysis. Our firm works with your attorney or mediator to provide the back-up calculations to support your alimony request or support why your spouse’s alimony request is not acceptable.
   


3. Not correctly utilizing experts. Many people make the mistake of confusing the expertise of the professionals with whom they work. Your lawyer is the best resource for legal advice. A financial professional can help with financial advice, calculations, budgets and tax issues etc. But, for emotional challenges presented by this life change, your therapist is the one with the tools to assist you. Make sure that whoever’s clock is ticking is the professional whose skills can be most advantageous to you at that point. Your result will be both better and more cost effective advice.
   


4. Not taking tax deductions. Did you know that attorney's fees for obtaining alimony and retirement funds may be tax deductible in the state of TN, if you qualify? Did you know that alimony is taxable to the recipient and is a tax deduction for the person paying? Did you know that most fathers do not qualify as head-of-household and are not able to take a child as a deduction? Be aware of other potential deductions and take them.
   


5. Failing to communicate directly with your spouse. Attorneys are best utilized for legal advice. It is not cost-effective for your attorney and your spouse’s attorney to communicate back and forth concerning your preference to "have the kids on even years for Christmas" or "keeping the treadmill and the sofa". Two attorney's fees combined can easily be $600 per hour. Save the extra cash for your IRA and discuss (or email) minor issues directly with your spouse.
   


6. Concealing important financial information or documents. Don’t do it. Time and money will be spent getting the information with an attorney having to subpoena documents and perhaps scheduling depositions. Assets will be found. It just takes time and your money. Cooperate and spend your money on a vacation.
   


7. Not properly insuring alimony and child support. Alimony stops on the death of the payor. Protect your stream of income with life insurance on the payor’s life. The beneficiary should be the owner of the policy and pay the premium. This prevents the policy from being inadvertently cancelled. Child support should be insured to include the cost of college if that parent has agreed to pay for college. University of Tennessee is currently $22,600 per year. Tuition expenses have increased on average 7% per year for the last several years. If your child is 10 years old now, and we assume a 7% increase, freshman expenses will be about $39,000. Incorporate tuition increases in your budget and life insurance calculation.
   


8. Assuming the wife should get the house. This is a hard one. Women have nesting instincts. But can you really afford the mortgage, monthly maintenance, repairs, insurance, taxes and utilities? Is your budget complete? Our monthly budget has 124 items. How many items are in your budget? Did you include the deductible for your health insurance, painting the exterior of your house or having tree limbs trimmed? If you forgo retirement savings and keep the house, you are gambling with your future. Do you feel lucky? Refer to our FAQ page for more items to consider if you want to keep the house.
   


9. Not considering mediation. Mediation involves you and your spouse meeting with a neutral third party to try and reach a settlement. The mediator may be a lawyer, a therapist or other professional who has received mediation training. The mediator can not tell you what to do. They are skilled in helping the parties over “sticking points”. Using a mediator can save you tens of thousands of dollars in legal fees, is less combative than legal proceedings and worth investigating, especially if you have children. www.tennmediators.org lists mediators in the Tennessee area.
   


10. Accepting an offer, just to get it over with. Yes, you are an emotional wreck and you just want it over. However, during a divorce you will be making the most important financial decisions of your life. Take the time to do it right. Speak to a financial professional to understand the short- and long-term financial impacts of your potential settlement package. Don’t assume that Tennesse divorce law mandates a 50 – 50 division of property. Also, don't assume that a 50 – 50 division of assets is the same thing as a fair division of property. Refer to our case study for more information on why you may deserve more than 50%.

Refer to our contact page to request a copy of “Tax Traps to Dodge During Divorce” or “Money Missteps to Avoid If You Keep the House.”