VUE

In the last issue of VUE, I wrote about our desire to focus our Financial and Investment column on the type of real life issues that VUE's well-heeled readers might come across on a day to day basis. The last issue discussed financial planning issues for couples and the importance to work together as a team with common or shared goals. In this issue, I thought I would flip that topic around and discuss the difficulties that come with "un-coupling." It has been said that of the top 10 life events that cause the most stress, divorce and marital separation come in second, and third respectively, preceded only by the loss of a beloved spouse. Now add to the equation, the emotional effects on our children, custody issues and financial stress, it can be a very difficult time in your life. As you can imagine, as a professional Investment Advisor for wealthy executives and families, we come across these situations all too often. Hopefully, you won't ever need the following information but if you do, the more you know the better. Divorce or separation is not only challenging emotionally for you and your family, but it also impacts many key areas of your financial life, including maintaining your lifestyle and your ability to reach your long- term financial goals. Below are some important topics and ideas to consider that may give you a better perspective and bring clarity to a difficult situation moving forward. CREATE OR REVISIT YOUR FINANCIAL PLAN Starting over on your own provides an ideal opportunity to reevaluate your cash flow, retirement goals, education funding and insurance needs. You can also review your current investment portfolio, asset allocation, asset protection strategies and estate plan. This process can help us create a strategy to help you meet your most important financial goals. ADDRESS NEW CIRCUMSTANCES Perhaps one spouse stayed home with the children and is returning to work as a result of divorce. Often, the income that supported one household must now support two. Consider completing a budget worksheet that outlines your major fixed expenses— housing, insurance, food, utilities, transportation and clothing—to determine a prudent spending plan. PLAN If you and your spouse own one or more homes together, the future of those assets may be uncertain at this point. You may both determine the houses should be sold, or perhaps they will become part of your divorce settlement. Either way, don't let mortgage and tax payments lapse; be sure to fit real estate expenses into your overall budget. For auto and life insurance coverage, consider reducing premiums by raising deductibles or dropping coverage you don't need. You can reevaluate any of these strategies when your post- divorce financial picture becomes clearer. Due to the fact that creditors can pursue you for debts incurred on joint accounts during your marriage, even if you did not personally incur those debts, you could be held accountable if your former spouse made a purchase and stopped making payments. To alert you of outstanding liabilities you might not know about—and to make sure there are no erroneous data— obtain credit reports and scores from the three main credit bureaus once a year. Credit bureaus can charge fees to provide your scores, but federal law allows you to receive one free credit report every 12 months. SUCCESSFULLY NAVIGATING YOUR FINANCIAL LIFE THROUGH DIVORCE By Anthony Cristiano V U E N J . C O M 126 VUE ON FORTUNE

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