Work + Family Life Balance Q&A

Hmmmm…..does it exist? We believe work-life balance is a concept marketed to women as the ideal equilibrium between a clean house, happy family and thriving career. Yet, no amount of time management and prioritization exists to attain the perfect formula for balance. The truth is, life circumstances are constantly changing making it difficult to maintain the perfect balance even if we achieve it for a time. People get sick, activities change with the seasons and the demand for a woman’s time and attention varies widely.

A more attainable focus is to get clarity on your purpose, passions and goals in order to set a trajectory to move towards them and track your progress. How easy is that! Forward momentum is more attainable than consistent and perfect balance. Who wants to be perfect anyway?

There is a 74% chance of a negative surprise when we let our partners manage our money. Couples who don’t deal with their financial life together are less likely to be prepared for emergencies and 5 times more likely to break up due to money issues. On the other hand, the happiest couples are those who regularly talk about money.

Human capital includes your intangible qualities, such as skills, knowledge, experiences, social attributes, and creativity that contribute to your ability to work and produce economic value. Many of these qualities can be learned through education, certification and on-the-job experience, but some can be innate characteristics in one’s personality and passions.

Human capital can increase if nurtured and pursued, but also can decline by lying dormant or if skills become outdated. This can be an important concept for women to understand as they pursue extended absences from the workforce to care for family.  Nurture your human capital by maintaining skills and credentials during extended time away from work. By taking small steps like maintaining mentoring and key professional relationships or pursuing continual education in your field, you can build and maintain your human capital even when you aren’t on the job!

If you’re contemplating divorce, what preliminary steps should you take to prepare?

“It sounds so obvious, but if you’re going to go down this road, you need to know your cash flow,” said certified financial planner Chris Cipolla, wealth advisor and certified divorce financial analyst with RFG Advisory in St. Louis, Mo.

“Clients are coming in completely blind,” Ms. Cipolla said. “They don’t always know what they should, such as what liabilities they owe (secured or unsecured), what assets the couple has, where those assets are, etc.”
She added that before you declare your intention to divorce, you need to search for this information.
One thing you can do is pull your credit report to see what liabilities are in your name.

According to Ms. Cipolla, here are the four most important questions for women to answer if they are seeking alimony/maintenance.
How much income do you need?
Can your spouse afford to pay support?
How long have you been married?
Are there any health issues that could impact your employment?

Other important steps she advises to take include:
· Building a team. This should include an attorney who is the right fit, a tax professional, a CDFA (a financial planner who specializes in divorce), an emotional support system or mental health counselor, and a school counselor, if children are involved.
· Building a budget. Do the best you can and your CDFA can help you expand it.
· Determining what’s important to you. When it comes time for negotiations, be clear on what you need in order to move on. Knowing what you need in terms of financial support and being able to categorize possessions into “really want”, “don’t want”, or what’s negotiable.

Who/What is a CDFA®?

“ A certified divorce financial analyst [CDFA®] is a neutral financial professional who works within the divorce process to help couples achieve equitable settlements,” Ms. Cipolla said.

CDFA® practitioners review settlement proposals for fairness and efficiently analyze the numbers and issues, such as withdrawal penalties, retirement plan rules, cost basis on property and investments, pension valuations, etc., she explained.

“It’s important to have financial planning expertise in addition to legal expertise on your team,” Ms. Cipolla said.
“A CDFA® understands finance and the tax implications of financial decisions within divorce.”

Neither RFG Advisory and its Investment Advisor Representatives nor Private Client Services and its Registered Representatives provide tax, legal, or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. Please consult your own tax, legal, and accounting professionals for guidance on such matters.