Myths about divorce abound. For one thing, divorce laws vary from state to state. So, quite often, people are confused due to what they have heard about celebrity divorces, or a friend or family member's divorce in another state. To help bridge this knowledge gap, I have compiled a list of ten facts about divorce that may surprise you. You may be responsible for debts incurred by your spouse … [Read more...]
Divorce Financial Planning
Financial planning can be complex and difficult under the best of circumstances. Financial planning in the context of a divorce represents a different level of complexity. These are the times when having the support and guidance of an experienced Certified financial planner can be invaluable.
The list of things that you might have to consider is extensive. Consider whether any of these items are pertinent to your case:
- Child support
- Alimony
- Separate property (inheritances or pre-marriage assets)
- Budgeting
- Executive benefits (stock options, restricted stock, bonuses)
- Can you afford to retain the home?
- College expenses
- Debt payments
- Small business owned by you or your spouse
- Medical insurance to provide post-divorce coverage
- Tax effects of the divorce
- Right to spouse's social security
- Right to spouse's pension
Are you prepared to address this list of issues without professional help?
We offer recommendations in our extensive list of articles for your review. Use the search box to find topics. When you are prepared to begin work and want to talk about your situation, give us a call and let us help you through this time!
Buying a house together before marriage
If you are beginning a new chapter in your life with a new partner, managing money may be the last thing on your mind. But it should be one of the first things you both consider as you begin to direct your separate finances into a mutual plan for the future. For example, buying a house together before getting married may seem like a good idea, yet there are pros and cons to consider. Buying a … [Read more...]
Social Security benefits and divorce
Decisions about filing for Social Security benefits will affect you financially for the rest of your life. And if you have gotten divorced in the past, you may qualify to receive Social Security on the work record of your ex-spouse. However, you must meet several requirements for qualifying to receive these benefits. You also must consider at what age to start taking those benefits. Here are … [Read more...]
Divorce and long-term care insurance
Being financially prepared for the possibility that you could require long-term care is an important part of retirement planning. Yet, too many people hope for the best and don't give this much thought. Our rapidly aging population, lengthening longevity and unpredictable health care costs highlight the need for long-term care insurance. So, couples getting a divorce, especially those approaching … [Read more...]
Divorce and Company Bonuses
An often overlooked community property asset to be equitably divided in a Texas divorce settlement is any company or employer bonus given to one or both of the spouses involved in a divorce. Sometimes attorneys fail to address the community nature of bonuses. Or, they forget to ask if either spouse typically receives, or is expected to receive, an annual or other type of bonus as part of his or … [Read more...]
Should you buy a house before the divorce is final?
Most of us don’t have the option of buying a home during the process of divorce due to financial constraints. But while a fortunate few may have the resources to afford the down payment, mortgage payments, property taxes and upkeep, careful thought should still be given to this idea. Going through a divorce is highly stressful. You are likely experiencing a wide variety of emotions right now, … [Read more...]
How to prepare for divorce mediation
The use of mediation as an alternative to the courtroom has become increasingly popular, especially in the divorce process. It’s affordable, confidential and achieves results. In last month's blog post, I wrote about the many faces of divorce mediation for Houston area couples. Mediation, in one form or another, is now an integral part of most divorces in Texas and many other states. Some … [Read more...]
The devil is in the details of the new tax law for divorcing couples
Let me just say, it pays to know how the new tax law may impact your divorce this year! Much of the new law, (the "Tax Cuts and Jobs Act"), which both houses of Congress passed on Dec. 20, 2017, goes into effect in 2019. Yet, based on how these laws could impact your divorce in 2019, you may benefit from getting your divorce completed in 2018. There are also some changes that take effect this … [Read more...]
New tax law may impact your divorce in 2018
The ink is barely dry on the "Tax Cuts and Jobs Act" which both houses of Congress passed on Dec. 20, 2017, yet, accountants are scrambling to figure out how the 500-page law will affect their clients this year. Most can't believe this complicated and confusing law is effective immediately. "We don't have a year to figure it out," said one notable tax expert. And some are warning the new law … [Read more...]
Facing divorce? Don’t dread the holidays — prepare instead
If you are considering divorce in 2018, you are probably dreading the approaching holidays. Let's face it, no one wants to acknowledge marital discord when the theme is "joy" and "good cheer." As the New Year approaches, consider focusing now on preparation and planning for what lies ahead. Here are some steps you can take during the holidays that will lay the ground work for a more productive … [Read more...]