AT A GLANCE

CHALLENGES

Pending divorce settlement

Complex financial portfolio

Overwhelming paperwork

Missed/bounced payments

Objectives

A couple who was going through a divorce settlement, with one spouse that never handled financial matters, such as bill pay, budgeting and monitoring cash flow.

Net Worth: $7 million.

One of The Client’s trusted advisors got Plumb involved during the divorce stage when the temporary settlement was already assigned to the family, but alimony and child support was still pending. The family had a complex financial portfolio with multiple investment properties, bank accounts, insurance policies, household employees and an international vacation home. The paperwork started to pile up, bills were not getting paid on time and checks were being bounced during the transition.

Solutions

Plumb’s engagement includes the following:

• Re-structuring bank accounts, one for regular bills and one for vacation savings
• Gathering list of vendors to pay late bills and remove duplicate bills
• Setting up “ticklers” to notify when payroll is due and bills/credit cards to avoid late penalties
• Managing and monitoring cash flow
• Processing household employee payroll to be compliant with payroll laws, which eliminates client liability
• Human resources management to assist with 5-8 household employees, including caregivers, drivers, housekeepers, and nannies regarding payroll and health insurance issues
• Monthly financial reporting and bookkeeping
• Tracking of alimony, income from investment properties and separate expenses

While the divorce case was still in litigation, Plumb was able to track back the previous two years’ worth of financial data to provide the attorneys with a monetary amount that shows lifestyle expenses and child support costs. This information helped determine the divorce settlement and put permanent alimony and child support in place. The Client now enjoys financial peace of mind, knowing bills are being paid on time, cash flow is constantly monitored and budgets have been established. She is secure in knowing that her household staff is properly managed, and checks and balances are in order to comply with legally required reporting.