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...]
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
- Separate property (inheritances or pre-marriage assets)
- 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!
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...]
Let me just say, it pays to know how this 2017 tax law may impact your divorce. New Tax Law Enacted in 2019 Much of the 2017 law, the "Tax Cuts and Jobs Act,” which both houses of Congress passed on Dec. 20, 2017, went into effect in 2019. Yet, based on how these laws could impact your divorce today, you may benefit from getting your divorce completed with the help of a Certified Financial Planner … [Read more...]
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...]
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...]
Traditional divorce and child custody processes are predominately adversarial in nature. In a typical "war-of-the-roses" divorce scenario, spouses each hire an attorney, and then a variety of expert consultants enter the fray on both sides to produce "dueling" business evaluations, financial analyses and/or custody evaluations. This type of divorce can go on for many months or even years, … [Read more...]
Once you have decided to get a divorce, another very important decision awaits you and your spouse: which path are you going to take to secure that divorce? This may surprise you, but in Texas, you have a choice in how you get divorced. However, how you get divorced can be more important, or at least just as important, as your decision to seek divorce in the first place. So, I will be outlining … [Read more...]
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...]
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...]
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...]