getting the finances right – an interview with David Cote, financial advisor
Following up on my previous blog about the use of professionals during the divorce process, here is my interview with David Cote, who is a Financial Advisor with a top NYC based wealth management firm, and with whom a number of my clients have consulted.
What is the role of a financial advisor during the divorce process?
The role of a financial advisor during the divorce process is to help one or both parties to develop a financial plan that allows them to get on with their lives post-divorce. A divorce requires a separation of assets, followed by new management of your daily expenses and savings. A financial advisor can be very helpful with both these important items.
what is a trial separation?
Some couples may be having a hard time with day-to-day life together but have not decided to throw in the towel just yet. They are not ready to seek a permanent separation and/or divorce, giving up on all that they have done to create a home together. However, living in close quarters may have become very strained and they may decide that one will move out temporarily while they try to work things out. During this time, they may choose to see a marriage and family therapist together and/or work on their own specific issues with an individual therapist.
how to neutralize the effects of fear
The previous blogs in this series talked about both the negative and positive aspects of fear. In Part III, let’s take a look at the different fears outlined in Part I and think about how we can start making constructive decisions and plans to resolve them.
- How will I live as a single person again?
Remember that even when in a relationship, you are in charge of your own happiness and well being. It is an illusion to think that your significant other is the source of your happiness. Continue reading
what are you afraid of?
Your spouse just told you that he/she wants a divorce, or you may be the one who wants a divorce. Suddenly you realize that your life is about to change. Panic sets in, your mind starts racing as you realize that you may be facing a future alone. You begin asking yourself all sorts of questions:
- How will I live as a single person again?
- Where will I be living?
- Will I have enough money to live on?
- Will I have to give away many of the furnishings or objects that created my home and that are familiar to me?
- Who will take care of me when I am feeling sick or lonely?
- Am I going to be a single parent? And what if my kids blame me for the divorce?
- Will my relationships with my friends and family change?
- Will I lose friends who knew us as a couple?
- What will my coworkers think of me?
- What will my friends think? And members of my family? Continue reading
if I give her/him money out of my retirement account, am I going to be penalized?
If you are getting a divorce and need to give your soon-to-be-ex-spouse part of your 401K, IRA or other retirement accounts, there are methods which will protect you from paying the early (before age 59 ½) withdrawal 10% tax penalty in addition to the income tax due at the time of withdrawal. Your ex-spouse can either:
- Become a co-beneficiary of your existing plan and have a separate account under the same administrator,
- Roll over the money into an existing IRA without paying any taxes.
Or:
Mediation = Satisfaction For You Both:
In mediation you can be as creative as you wish to be. Only you know the specifics of your lives, what works for you and what does not. As your mediator I’m there to help you “think outside of the box” if necessary, sometimes coming up with non traditional answers, but answers that will satisfy not only your financial needs but your emotional needs as well.
