GRC Wealth Transition Solutions

Last month I had the privilege of helping a client with a critical decision that was keeping her up at night.

With respect to spousal support, she was faced with a choice between two proposals. She asked me, "Should I agree to a lump-sum payment or should I accept monthly payments"?

Together we explored the qualitative factors of both scenarios.

👉 Were there concerns about consistency in collecting payments due to ongoing conflict?
👉 Was there a need to utilize the cash for immediate goals, like paying off debt or purchasing a home?

We considered the quantitative factors.

👉 How would periodic monthly payments impact her tax obligation in the future?

Finally, we ran a Financial Forecast to see how each of these scenarios would play out.

We were able to see what it would mean to take the non-taxable lump-sum payment and invest it for the future to provide a nest egg for retirement and simultaneously compare this to how periodic payments, after-tax, would meet her needs.

A Financial Forecast provided a visual path forward and she was able to make a decision with confidence.

There are many financial considerations when facing a and . It is invaluable to have a financial professional on your team.

Reach out to https://buff.ly/2UR5rY3 to book a conversation.

How will divorce affect finances moving forward?

Numerous studies show that the economic costs of divorce fall more heavily on women. After divorce, women experience a sharper decline in household income.

For men, most will experience a 10 - 40% drop in standard of living.

The uncertainties of how your lifestyle will change after divorce due to changes in finances can be a source of stress.

When it comes to divorce, if you're uncertain about your financial future post divorce consider these tips to help alleviate some stress:

1. Understand your complete financial picture before separation.

Take an inventory of what you own and what you owe. It's important to actually write it out. If you haven't been actively involved in the family finances, this is especially important to do. Do your best and just give it a try; you may surprise yourself.

2. Deciding who will be responsible for joint debts in divorce can be difficult.

If there are joint savings, investments or other joint assets, consider liquidating assets to pay off these debts prior to your separation. Order a credit report to learn what your credit score is and ensure your credit score remains intact. Refrain from the joint debts getting larger and work towards canceling joint credit cards.

3. Create a budget/financial forecast that reflects your estimated income and expenses when flying solo.

This is so vitally important and often shied away from. But the reason it is important is it can help you make important decisions and put actions in place to set you up for success.

4. Ignorance is not bliss.

When facing divorce educate yourself. Understand your options. Understand your finances. Reach out and get assistance to accumulate all the knowledge you need from reliable sources.

For more information book a phone call by heading over to www.grcwealth.ca