Case Studies
Case Study #1 - Lack of Information Stalls Settlement
Who: Woman (age 41) is shocked when her husband (age 46) wants a divorce. They have 3 school age children. She works part time. Her knowledge of the family finances is limited.
Challenge: Although parenting plan and support issues are agreed to amicably, there are continuous delays getting financial information. The woman wants to remain in the house and insists this is the only course for settlement. Settlement options stall, the couple and the lawyers are frustrated with the process.
WDF was able to:
- Provide simple expense tracking worksheets so she could accurately compile her historic spending patterns.
- Explain unfamiliar items and what to consider when planning her next steps.
- Clarify what expenses she'd be facing in keeping the house, and in doing so, why keeping the house was not an affordable option.
- Encourage her to research the cost of alternative housing.
- Help her pre qualify for a small mortgage on a possible new house.
Results
- Lawyers received an accurate financial statement within 2 weeks of first meeting.
- Woman faced the reality of a move. She also discovered attractive townhouses in the neighborhood closer to her children's school.
- With appropriate information now collected, the couple is now willing to talk with lawyers about reasonable options.
- The couple moved forward, now agreed on several acceptable scenarios including a final Separation Agreement.
Case Study #2 - Impasse Caused by Support Issues
Who: A couple, (husband age 55 and wife age 45), with 2 teenage children, mutually agree to end the marriage. Both work but he wants to retire at 58.
Challenge: Both have different priorities, which impede progress on a Settlement. He is concerned about the ramifications of any settlement on his retirement. She is worried about university costs for the children, her own retirement, and the ongoing costs of caring for her aging mother.
WDF was able to:
- Project the husband's total retirement income at different retirement ages.
- Project total costs of education for their children and calculate what their current savings would cover.
- Project the various support options that balance her needs vs. his needs, now and in the future.
Results
- Main financial issues are solved. Projections demonstrated they had enough saved to cover 70% of the education costs and both agreed that it is appropriate that their children take responsibility for the rest of the expense.
- Couple reached a Separation Agreement that works for both. He agreed to work 3 more years, and she moves ahead with peace of mind, knowing she now can take care of her mother by working part-time.
Case Study #3 - Financial Issues Complicate Settlement
Who: Woman (age 54) has initiated steps to end her marriage. She is a successful businesswoman with more income than her husband (age 57). The couple has two grown children.
Challenge: She's is very concerned about "giving away to much" in the Settlement. She is building her business and has little time to focus on what needs to be done. Those reviewing her documents find it almost impossible to distinguish between her personal and business expenses, and difficult to project future earnings.
WDF was able to:
- Calculate the woman's Cash Flow Income vs. her Net Income.
- Review her Business Plan projections.
- Combine her business goals with her personal goals.
- Review expenses specific to an entrepreneur such as disability insurance and her own health benefit plan.
- Review tax considerations of the options under consideration.
Results
- A Separation Agreement is reached that provides the woman with the flexibility she needed to move forward with confidence.