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Divorce planning as practiced by Certified Mortgage & Divorce Planning Professionals, is the process of working with clients, that have either started the divorce proceedings or are considering a divorce. These individuals have anxiety about how they will pay all of their financial obligations, and legal fees and continue to be independent. How they can plan and protect their “C.R.A.D.L.E”, Credit, Assets, Dependents, Life & Estate so they can continue to be self sufficient during and after their divorce.

When you retain the services of a CDPP professional, you will usually meet with them, in two 2 hour consultations.
Your first consultation, is an information gathering meeting, to be used by your planner, to prepare your “Personalized Divorce Plan” ,using our trademarked C.R.A.D.L.E System. The second meeting will be to review your completed plan.

Your planner will begin by analyzing your credit,paying special attention to closing accounts, held jointly with your spouse. Creating new credit in your own name. Ensuring that  closed account statements, continue to come to your attention, to guarantee they continue to be paid. Establishing a budget for your divorce services. Opening a safety deposit box ,to secure items of personal value.

We will then discuss your options, in resolving your divorce case, with mediation, collaboration, or litigation by thoroughly explaining the pros and cons of all.

Assets and distribution of them, are always a concern for those going through divorce. Most individuals are concerned with how their assets are divided, most people think that divorce is a fifty/fifty split.

This is not always the case. It depends on whether your state is a Community Property, or Common Law State. Community Property States ,will typically divide assets in half. Where as Common Law, or Equitable Distribution States err on the side of fair, and not necessarily equal.

In  both states, what you owned, and owed, prior to marriage will remain yours. What you earned, or incurred as debt at the  official date of separation, will be yours as well. Under the assets section of your plan, we will review :

• tax returns,
• taxes owed,
• upcoming tax returns and refunds,
• equity in the marital residence,
• stocks & bonds,
• pension plans,
• cash,
• reserves to pay for your divorce,
• insurance and pay-roll deductions to increase your take home pay.

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Where there are children involved, the plan will address child support, proper distribution of this support and how to insure that it continues in the case of the death, or disability of the payer. The plan will address child care, tuition or college planning, and which parent should claim the children as tax dependents. Where appropriate, family counseling will be suggested, and budgeted for.

Of course your current lifestyle must be protected! Your plan will prepare a detailed “life style analysis”, that will address every aspect of your families’ life. Whether to keep your marital residence and how to pay off debts.

This section of your plan, will also address your personal insurance needs, such as long term care coverage, health insurance, and life insurance.

If alimony is deemed appropriate and necessary, it will be determined what is reasonable, for how long, and how it should be paid. And finally, in some cases it is deemed necessary to conduct a vocational estimate, for a under employed, or never employed spouse, to determine their future earning capacity. In these cases, we will budget for additional education.

Estate planning is the final element of every plan. If there is an existing plan, it will be reviewed for changes. In  cases where there is currently no plan , an outline will be developed to create one.This will include the establishment of a Trust, Pour -Over Will, and Trustees assigned.

It is your planner’s goal,  to provide you a plan emphasizing the best outcome, but preparing you for the worst.

This is why your divorce plan is so detailed, and will take time to prepare, and review. The advantage to you, and your family, is that your decisions will be based on facts, not emotion, thus protecting you and your family’s future.