It’s often difficult for individuals and couples to fully understand how a Certified Divorce Financial Analyst (CDFA) can assist them in their divorce process. So, I am developing a series of case studies that illustrate how I’ve helped my clients achieve their goals and reach a divorce settlement they are satisfied with. This divorce case included a prenup, lots of separate property belonging … [Read more...]
“Can I be reimbursed for money my spouse wasted during our marriage?”
In a divorce, identifying, calculating and dividing property and assets can get very complex. Clients often ask me if they can be reimbursed in the divorce settlement for specific unusual, community spending during the marriage, or “waste,” by their soon-to-be-spouse. In Texas, a law was passed in 2011 to help innocent spouses “reconstitute the community estate” if the … [Read more...]
Frequently Asked Questions About Divorce Financial Planning
Q: Am I responsible for my spouse’s debts even when I had nothing to do with the charges? A: Debts from before marriage are a person’s separate debt and you wouldn’t be liable; however, if the debt was incurred during the marriage in order to provide necessities like clothing, food, etc. then you too are liable. Read more on divorce and debt, here. Q: Is my IRA community property even though it … [Read more...]
Dividing 401(k) savings, corporate benefits and pension funds in a divorce
If you and your spouse are considering, or are in the process of divorce, and one or both of you has corporate or civil service benefits, or a 401(k) savings and/or pension plan, part of the division of these marital assets will involve the drafting of a QDRO, or Qualified Domestic Relations Order. It is important that you understand how this works. QDROs are documents mandated by federal law … [Read more...]
Dividing 401(k) savings, corporate benefit and pension funds 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 these marital assets will involve the drafting of a QDRO, or Qualified Domestic Relations Order. QDROs are documents mandated by federal law under ERISA (Employee Retirement Income Security Act) … [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...]
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...]