Bradley and Kori’s Story
The Facts:
After six years of marriage, Bradley and Kori are divorcing. Bradley, a physician and partial owner of a private medical practice, has managed the household finances throughout their marriage. Kori worked part time as a nurse, has her own 401(k), and has been named as a beneficiary in an inherited trust. Together they hold a joint investment account, checking and savings accounts, a home, and two vehicles. Their shared liabilities include a mortgage, a car loan, Bradley’s medical school debt, and revolving credit card balances. They have 2 children ages 2 and 4 and have just started to save for future college education costs.
The Problem:
Because Bradley handled the finances, Kori feels disconnected from the full picture of what they have, what she’s entitled to, and what her future looks like. She is concerned about budgeting and what her housing situation will look like, and if the family home is sold, what she should do with the proceeds. A friend refers her to Peak.
The Solution:
Working alongside her attorney and CPA, our team conducts a comprehensive review of Kori’s income, expenses, assets, and liabilities. We seek to understand everything, including how the inherited trust functions and whether it can be used as a resource, her projected retirement assets in the future, how her current insurance policies work and whether life insurance is needed, the approximate value of Bradley’s business interest, and years of joint tax filings with accumulated loss carryforwards and how her tax return will be different going forward. Kori enters settlement negotiations with clarity, realistic expectations, and no surprises.
After the settlement finalizes, we update the post-divorce budget, incorporate the settlement agreement into the financial plan, assist her with updating her insurance coverage, and review her estate plan, so she can understand the estate planning nuances as a divorcee with young children, update her estate plan and fiduciary selections, and review all titling and beneficiary designations to make sure the assets flow accurately through her plan. We will also manage the asset transfer process so it is streamlined, handle the tax preparation so it is easy, and make sure her investments are aligned with her goals going forward.
Kori’s future looks quite different from what she had feared. She moves confidently into it with clarity, adequate resources from a fair settlement, and a team behind her to address whatever comes next. When Kori needed to pivot from a life changing event, Peak was there to provide guidance and a stable platform.
DISCLOSURE
Investment Advisory Services are being offered through Peak Asset Management, LLC, a Registered Investment Adviser. Any content included in this presentation developed from third party resources is believed to be accurate information. The opinions and recommendations expressed, and financial planning material provided, are for general information purposes, and they should never be considered a solicitation for the purchase or sale of any security. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk.
This financial planning presentation is intended to facilitate a discussion concerning estate, business and financial planning goals, objectives and needs, and to provide you with general information regarding your planning options. Peak Asset Management (Peak) cannot provide legal, accounting or tax advice and any statements made by a partner, officer, advisor, employee or agent of Peak, including any legal and/or tax information, is not intended to be nor should it be interpreted as legal or tax advice, or an opinion. Such services must be provided by your outside attorney and/or CPA or tax professional. Please consult with these outside professionals accordingly.
