Case Study 4 – Client Restructures Finances Following Divorce

Diligent Planning and Budgeting Helps Client Restructure Finances Following Divorce

Client Situation:

Having built a successful business with her spouse, our client faced the difficult task of transitioning to a single income household following a divorce. Ironwood Investment Counsel was engaged to help the client understand the value of the company she co-owned with her ex-husband, as well as plan her financial future as a single person.

Client Objectives:

While our client came to Ironwood with the broad objective of helping prepare for her new financial life, a thorough interview and discovery process led the firm to uncover additional ways we could assist her, including:

  • Identify her portion of the business’ value and appropriate financial compensation
  • Develop a cash flow plan and budget to help the client live within her means
  • Build and manage an investment portfolio to meet her long-term spending objectives
  • Determine how retaining the family’s second home would fit into the client’s overall financial strategy
  • Consider and plan for tax implications associated with the client’s new tax position and financial transition plan

How We Helped:

Ironwood created a detailed cash flow plan to meet the client’s lifestyle needs. We also developed a customized portfolio to provide for the client’s future needs while educating her regarding investments and planning. Perhaps most valuable to the client was the comprehensive budgeting plan we crafted to help her manage expenses.

“This client was great to work with as she really wanted to understand her overall financial picture and relied heavily on Ironwood to assist her with planning and budgeting to ensure she didn’t over-extend or live outside her means,” said Jeffrey Shiffra, a Partner in the firm. “We continue to help manage her portfolio and provide counsel as needed. We sincerely value that ongoing relationship with all of our clients.”

Overall Results:

Ironwood successfully created a financial framework to meet the client’s cash flow, investment, and budgeting needs, thus allowing her to effectively transition to a new financial lifestyle.

*Please Note: Limitations: The above Case Study is hypothetical-not involving actual Ironwood clients. The Case Study illustrates the hypothetical experience of a fictitious client based on a scenario that an actual client might experience. The Case Study is designed to generally illustrate how we may provide our services to our clients. Keeping in mind that no two clients, situations, or experiences are exactly alike, the Case Study is not to be construed as an endorsement of Ironwood by any of its past or current clients, nor any assurance that Ironwood may be able to help any client achieve the same satisfactory results. To the contrary, the Case Study should be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results or satisfaction if Ironwood is engaged, or continues to be engaged, to provide investment advisory services.