Divorce is challenging enough in itself, yet getting to a final settlement can be further complicated if one or both spouses have an ownership interest in a closely held, private or small business. In these cases, the business may be a significant source of income for the family, as well as a potential asset subject to division. The first step is to determine whether the business interest … [Read more...]
Social Security 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, or are preparing for divorce now, you may qualify to receive Social Security on the work record of your ex-spouse, and later on your own work record, if you qualify under the current rules of choosing which benefits to file for and when. You must … [Read more...]
Unraveling commingled marital assets in a divorce
Often, couples who decide to divorce after many years of marriage discover their “separate property” and “community property” has become “commingled.” In other words, they don’t know how to determine where “separate property” and “community property” begins and ends with regard to their finances. This issue can be very important in a divorce because “separate property” will be completely free of … [Read more...]
A closer look at Early Intervention Mediation
Traditional divorce, as most people know it, is inherently adversarial in nature. In a typical "war-of-the-roses" scenario, spouses each hire an attorney and then they battle it out until some sort of agreement is reached. This type of divorce can go on for many months or even years. Consultants of all kinds may be called in by both sides for “expert” opinions, reviews, depositions and … [Read more...]
Focus on your finances in a divorce
Most couples seeking divorce readily concede their need for legal assistance in this matter. Far fewer, however, realize just how much they may benefit from the expertise of a qualified financial expert, such as a Certified Divorce Financial Analyst. With today’s complex financial landscape, and ever-changing divorce and tax laws, neglecting the finer points of divorce finances is a blunder you … [Read more...]
What happens to the family home in a divorce?
The question of what happens to “the house” in a divorce is often one that 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 my clients to pause, set aside emotions and objectively consider all the significant, interrelated factors before deciding on what … [Read more...]
Don’t fight over pots and pans
As a Certified Divorce Financial Analyst, I consider my primary focus to be one of helping divorcing individuals and couples sort out and divide the marital estate in an equitable manner. This typically requires gathering all financial documents and statements with regard to all assets and debts. This includes the couple’s savings accounts, retirement accounts, credit card statements, brokerage … [Read more...]
The ABCs of QDROs (Qualified Domestic Relations Orders) in a divorce
If you and your spouse are considering, or are in the process of divorce, and one or both of you has a corporate benefits or civil service, 401(k) savings and/or pension plan, part of the division of marital assets will likely involve the drafting of a QDRO, or Qualified Domestic Relations Order. QDROs are documents mandated by federal law under ERISA (Employee Retirement Income Security … [Read more...]
What you may not know about divorce and debt
The financial aspects of a divorce case involve multiple, interrelated components. All eyes are typically on the couple’s assets and how to equitably divide them in a settlement. Yet, in my view, one area of a couple's financial landscape that warrants equally close consideration during divorce is the couple’s debt. Get a credit report on yourself and your spouse I recommend ordering a … [Read more...]
What is an equitable divorce settlement?
I am often asked to help divorcing individuals and couples determine how to equitably divide their marital estate. This may seem to be cut-and-dry, but it rarely is. For one, many people believe that the court will automatically divide a couple's assets 50/50 in a divorce. This a myth. The Texas Family Code (the laws on divorce) uses the words “just and right” when dividing community assets … [Read more...]