What is Collaborative Divorce w/ Melissa Pavone

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Wealthy After 40: Retirement Planning and Budgeting for Gen X 22 min 2 speakers 3 chapters transcribed 1 month ago
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How can a Certified Divorce Financial Analyst help you avoid financial pitfalls during divorce?

Dalene (Dalene Higgins) 0:00
If you are faced with divorce and curious as to how to maintain your finances so you're not left hanging by a thread, facing large amounts of debt, not enough money to support yourself, today's episode is for you. Guest Melissa Pavone shares how a certified financial divorce analyst can support you in being able to maintain all of those things more successfully through the divorce process. Welcome to Wealthy After 40, where I help you turn retirement uncertainty into a clear, actionable plan. If you're thinking about retirement but feel unsure whether it's even possible, I understand. The gap between where you are now and where you want to be can feel overwhelming, but it doesn't have to. Hi, I'm Dailene Higgins, founder of Elevate Finances and your personal financial coach.
Dalene (Dalene Higgins) 1:02
Having retired at the age of 50 and have enjoyed over two years of retirement bliss, I'm here to help you create your retirement dream and make it a reality. No more wondering, no more guessing, just taking action and building a future for yourself. Join me each week as I guide you through essential topics such as budgeting, cash flow, lifestyle planning, debt and savings, insurance, Medicare, and social security. Together, we'll build a strategy to help you achieve the retirement you've always desired. It's time to shift from uncertain to unstoppable and make your retirement dreams a reality. Welcome to the podcast. Melissa, I'm excited to chat and learn more about what you do and how you help people, especially going through divorce.
Dalene (Dalene Higgins) 1:56
Will you share with us who you are, what you do, and what you love?
Melissa Murphy-Pavone 2:01
Sure. Thanks so much for having me as a guest today. My name is Melissa Murphy-Pavone. I'm a certified financial planner and a certified divorce financial analyst. And my true passion is really helping people and empowering the non-CFO spouse through their divorce process.
Dalene (Dalene Higgins) 2:21
I like that. So the non-CFO, okay, I guess my question is twofold because I just had my statistic pop up in my head that 85% of household day-to-day finances, day-to-day meaning the groceries, the fuel, the kids stuff is run by the women, 85%. But when it comes to the long-term planning, they're not involved. So yes, non-CFO, explain who that would be.
Melissa Murphy-Pavone 2:47
So the CFO of the family is the person that deals with the tax return, the investing accounts, the savings accounts, maybe like the more long-term things, the larger purchases. And it's great when both spouses are involved in that process or aware of it. But we've all heard of like the blank tax returns, like people not knowing who their mortgage is with and how much credit card debt they have, or they just have... They're only privy to kind of like the day-to-day expenses, like you said, being able to run the household, but not seeing the big picture. And that's really important. I'm a big proponent of no matter where you are in your relationship or in life, just to have that financial clarity and open financial communication, because that's really key.
Dalene (Dalene Higgins) 3:37
Yeah. Yeah. That is very important. And yeah, even if you're not somebody that is expecting divorce, it's important to get on the page with the other spouse and just kind of collaboratively do this. What made you choose the path of helping people through collaborative divorce?
Melissa Murphy-Pavone 3:57
So I got my CDFA back in 2015, and I always wanted to help People go through divorce. And the reason why is my mom. I was a child of divorce. She made a lot of decisions with her heart and not her head. And when you're in the throes of divorce, it's so emotionally draining that you're not able to think clearly anymore. to how these decisions will affect me, my family, my retirement, 5, 10, 20 years. You're just trying to get through the day. And so I've kind of made it my mission to really be that voice of reason and help empower for people to make more educated decisions throughout that process and really be their financial ally because it's really scary. It's uncharted territory. They don't know. There's not like a rule book, like, okay, I get divorced.

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