Family financial planning means a lot of things. It doesn’t just mean making sure you buy life insurance (although that’s certainly an important component). It’s also about getting your estate plan in order so you can be sure that all your assets will go to the people you want to have them once you’re gone. Without a solid estate plan, most of your assets could go to paying taxes and the legal costs and attorneys’ fees associated with figuring out who gets what. But a qualified family financial advisor can help you shelter parts of your estate from taxes and work with an attorney to create an airtight will so you’ll know you won’t have to wonder what will happen to your money once you’re no longer in need of it.
Small Business Family Financial Planning
This is especially important if one or both partners owns their own business. Being a business owner always comes with its own risks, so many times, the spouse will want to make sure that their assets will not be at risk if their partner’s business gambles don’t pay off.
If the spouses are in business together, then having a solid financial plan in place is even more important. Not only is it vital to know who brought what to the marriage, but it’s just as important to define who brought what to the business. If either the business and/or the marriage fails, having done the work of creating a financial plan will make the whole process easier on everyone because it can help determine which partner gets to leave with what surviving assets.
Divorce Family Financial Planning
Unfortunately, family financial planning also includes determining what will happen in the event of a divorce. It’s never a pleasant prospect, but knowing ahead of time who gets what can make the process that much easier and less stressful.
Ideally, a couple should grow together, both financially and as people. They both bring things to the partnership, and rather than squander those assets, it’s important to get everyone on the same page regarding the best way to manage those assets to help everyone achieve their best financial outcome.