Advisors name the most overlooked financial issues during divorce proceedings

investmentnews.com:

Sad as it may be, divorce remains a fact of life for many families. It’s also a circumstance when clients are most reliant on their financial advisors at a time when their emotions are at their most heightened.

And that’s why financial advisors better not let anything slip through the cracks when helping those clients navigate the divorce process.

Michelle Smith, CEO of Source Financial Advisors and one of the nation’s most sought-after Certified Divorce Financial Analysts, says one of the most overlooked items that financial advisors need to attend to when dealing with a couple going through a divorce is credit – both maintaining it and establishing it when necessary.

“It’s essential to pull credit reports for both parties to ensure good credit standing,” said Smith. “If the non-monied spouse does not have credit in their own name, a credit card should be immediately established using their social security number.”

She adds that an additional card on someone else’s primary account does not build credit in that person’s name.

“This is particularly crucial as women often find themselves at a severe disadvantage post-divorce if they lack their own credit history,” said Smith.

Meanwhile, Matt Kilgroe, president of Cyndeo Wealth Partners, says one particularly overlooked issue is the handling of the marital home if there is a mortgage.  Often the non-breadwinner spouse retains the home and the breadwinner wants their name off the mortgage. 

“Banks are notoriously difficult to deal with on this as they want the retaining spouse to qualify for the mortgage on their own,” said Kilgroe. “In today’s interest rate environment nearly all refinancings are going to be at significantly higher rates if the retaining spouse can even