Empowering Families

Hi there. This is Katherine Miller, founder of the Miller Law Group and Director of the Center for Understanding and Conflict. I’m on a mission to help people divorce with dignity. This week, in honor of Financial Planning Week, we’re speaking with several experts in financial planning and divorce to get their top three tips for managing finances through divorce. Today, I’m speaking with Carol Epstein, First Vice President at Morgan Stanley and a financial planner. Welcome, Carol, and thank you for joining us.

My pleasure.

Carol, what are your top three tips for people who are thinking about or going through a divorce to help them with their finances and financial planning?

To simplify the many tasks involved, I’ll break it down into three main tips. First, assemble a team of advisors. Select an attorney, an accountant, a personal counselor if needed, and a financial advisor. This team will support you throughout the process, each bringing their own expertise to help you make informed financial decisions during your divorce. These professionals will work together to address potential problems and guide you through the process.

Great advice. Many people rely on friends who have been through divorce, but they might not have the complete picture or legal knowledge. So, assembling a professional team is crucial. What’s tip number two?

A quick comment on tip number one: It’s important not to take advice from those who aren’t qualified professionals, like a dentist. Seek advice from your chosen professionals and make decisions based on their expertise.

Tip number two: Take control of your financial life. Get your accounts in order, close joint accounts, and open individual accounts. Check your credit rating, learn how to open accounts, and start building your credit rating independently.

That’s solid advice. It’s also a good idea to exchange credit reports, as there might be things you’re unaware of. Reviewing accounts, insurance policies, and beneficiaries on retirement accounts is crucial. Ensure everything is updated and reflects your current situation. Now, what’s tip number three?

Tip number three: Work on creating a realistic budget. Understand what assets and expenses are coming to you, and assess not just their value but also the cost of living and maintaining them. For instance, it’s important to know not just the value of a house, but also the taxes, maintenance costs, and whether you have the cash flow to manage these expenses. Being able to live comfortably in the house is as important as owning it. Separate personal and marital assets, and discuss with your attorney about any legal documents created before or during the marriage. A detailed budget and plan will help you determine if your assets and income can sustain your new lifestyle, including considerations for children and college expenses.

I like the idea of forecasting cash flow to ensure you can afford your living expenses. What do you think, Carol?

Absolutely. Forecasting your cash flow and planning for expenses is crucial. Obtaining assets is one thing, but ensuring you can comfortably live and manage them is key. Planning helps you prepare for various scenarios, such as changes in income or unexpected events. The plan often becomes more important than the value of the assets themselves.

That’s well said. Carol Epstein, if people want to contact you or learn more about what you do, how can they reach you?

They can Google my name, Carol Epstein, Morgan Stanley, and visit my website. It’s detailed and regularly updated to reflect who I am, what’s important to me, and how I work with clients.

Is there a phone number where you can be reached?

Yes, it’s 254-859.

Great. Thank you so much for your valuable insights today.

My pleasure.