The question of what happens to the house in a divorce requires careful consideration. In my experience, this issue is often clouded by emotions that can get in the way of the couple, or one spouse, making the best financial decision. I advise clients to set aside emotions and consider all the significant, interrelated factors before they decide on what happens to the house. Consider the … [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!
Research and reflect on divorce before you file
Still considering divorce, but not yet ready to file? In my experience, the most prepared couples who divorce, have reflected on the decision over many months or even years. So, if you find yourself thinking about divorce, know that you are not alone. Yet, also realize that being stuck in between is nowhere to be either. Here are some questions from a psychotherapist to ask yourself if you are … [Read more...]
Watch for “Sudden Income Deficit Syndrome” if your soon-to-be Ex owns a business
My experience working with divorcing couples has taught me a few things. For one, I expect each spouse to focus on his and her own financial self-preservation, which is understandable. Quite often, though, the husband transitions into this mind-set long before the wife does -- sometimes even before the divorce papers have been filed. This can and does leave many women vulnerable to some financial … [Read more...]
Looking for clues of bad behavior during divorce (part two)
In part one of our blog post with this headline, we discussed a variety of red flags to look for during the divorce process that may indicate a spouse is behaving badly. We also offered tips to better protect yourself against such behavior, as well as how to educate yourself about the divorce process and what to expect. In this blog post, we will take our examination of bad behavior during … [Read more...]
Tracing to Prove Your Separate Property
Using Tracing to Divide Separate from Community Property Did you know that your inheritance can end up being divided with your ex-spouse? Despite your best efforts, Mom’s legacy for you has probably been mingled with community funds. But, you say that you kept it in a separate account and never added community earnings? The problem with that line of thought is that dividends and interest on … [Read more...]
What Is Certified Financial Planning
A person who does certified financial planning will be a member of and meets the requirements for the CFP Board (Certified Financial Planner Board of Standards). This means that they must meet the proper educational requirements as well as pass examinations and stick to the ethical standards of this organization in order to remain a paying member in good standing. This board requires that … [Read more...]
Finding Financial Planning Advice
When going through a divorce perhaps the last thing on someone’s mind is financial planning advice. While there may be more emotional and personal issues on the table, this is definitely one area that cannot be ignored. It is important to be able to see the entire picture of what the future will look like once the divorce is over, plus it is equally as important to know what assets there are and … [Read more...]
Social Security
Your social security benefit is based on your earnings averaged over most of your working career. Higher lifetime earnings result in higher benefits. If you have some years of no earnings or low earnings, your benefit amount may be lower than if you had worked steadily. Early Retirement You can start your Social Security benefits as early as age 62, but the benefit amount you receive will be … [Read more...]
Long-Term Care Insurance
General Recommendations for Long-term Care Policies: Once you buy a policy, don’t stop paying the premium. If financial circumstances require that you do so, Texas law requires companies to offer you the option to receive a percentage of the benefits you purchased. You can lower your premium by choosing a longer elimination period. Just be sure you consider how long you can afford to pay … [Read more...]