InSight

Divorce Playbook: Remember inflation and accountant for it

Financial Planning Dentist

It is important to remember that all goods and services inflate over time, but they don’t inflate at the same rate. Healthcare and Education have been, by far, the most inflationary elements of financial life for decades. The rising costs of education and healthcare are seemingly limitless. So, if your divorce settlement is going to require you to account for healthcare costs or provide education to a child or spouse, then use a more aggressive strategy for inflation expectations. 

It’s also important to remember that inflation is hyperbolic, no longer. So the younger a child is, the more exposure they have to the effects of education inflation.

A good lawyer will have some expectations for the rising costs of goods and services and should account for that in a settlement. But a great lawyer will make special considerations for parts of the inflation landscape that will uniquely impact you in a post-divorce world.

It is unlikely, you will be able to redress these calculations in post-divorce negotiations, so it is especially important to understand your inflation exposure now, and get accommodations made in writing during the divorce.

More related articles:

Articles
Kevin Taylor

Cash Flow: 6 Successes For Your Dental Practice (1/2)

A cornerstone of any business is having a mastery over your revenue and cash flow. Lucky for our dentist clients, they have a fantastic capacity for inflow, but disproportionately high outflows from expenses and taxes. Analyzing your accounts receivable and operating activities is an intrinsic part of our cash flow

Read More »

Tax Document Checklist

Tax Preparation Checklist Personal Information Your social security number or tax ID number Your spouse’s full name, social security number or tax ID number, and date of birth Identity Protection PIN, if issued by the IRS Routing and account numbers for direct deposit or payment Foreign reporting and residency information

Read More »
Boulder Financial Advisors, Investing,
Articles
Kevin Taylor

The Ethical Implications of AI Investing

Artificial intelligence (AI) is revolutionizing the way we live and work, and as a result, there has been a surge of interest in AI investing. While AI has the potential to create significant value for investors and society as a whole, there are also ethical implications that must be considered.

Read More »

Pin It on Pinterest