The emotional and financial ramifications of a divorce can be devastating, and Financial Planning may be low on your list of priorities right now, but working through various aspects of your finances is imperative when going through the process of a separation.
Anyone who has gone through a divorce will tell you it can be one of the most challenging times in their lives and each day is a struggle. As a result, it’s only natural to want a resolution as quickly as possible. However, you can potentially harm your financial future if you’ve not taken the time to get a good handle on your current and future financial situation.
Our Role: Your Divorce Financial Planning
There are steps that we will help you be mindful of, prepare for, and take, when considering the life transitions that come along with a divorce. Our mission is to provide you the financial guidance and support you need to move forward.
As you move through this difficult time, we will work together towards personal and financial confidence, empowerment and clarity.
We will work to find YOUR New Financial Independence!
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How GOP’s New Tax Proposals Affect You
There’s big news out of Washington, where Republicans began voting on their proposed tax legislation.
Among many other sweeping changes, the biggest for CDFAs® and their clients has to do with alimony. The bill the House voted for this week would do away with the alimony tax deduction entirely for payers, and remove alimony as taxable income for the recipient (though the Senate bill keeps the deduction). But keep in mind that this change would only apply to new agreements, not ones entered into before passage.
Dividing the Practice in a Physician Divorce
Medical doctors who own their own practice need your help valuing that practice when they prepare to divorce. A skilled financial analyst can weigh all assets and liabilities, and determine where other partners fit in to the equation when one divorces. One important consideration: a spouse who isn’t a physician is prohibited from owning a share in the practice. You should also be prepared to take on the methods of the other side’s experts, so that your valuation (and not theirs) is accepted.
Same-Sex Divorces Offer Unique Challenges
You might think that now that same-sex marriage is legal, these couples face the same issues that opposite-sex couples do when it comes to divorce. You’d be wrong. Same-sex couples who lived together for many years before marriage was an option could now have trouble convincing a job to backdate the relationship. Child custody is even more complicated, since not all states recognize parental rights for both spouses. Given these legal hurdles, mediation and collaborative divorce could be especially appealing in same-sex divorces.
Don’t Do A DIY Divorce
Everyone wants to save money on their divorce by doing it themselves. But without a QDRO specialist, they stand to lose serious money when divvying up retirement accounts. Taxes and penalties can drain these assets to almost nothing – unless they have an agreement in place to properly transfer the funds. “Do not get divorced unless the QDRO is completed and ready to be signed simultaneously,” advises analyst Tim Voit. Paying a little money now for the right specialist to sweat the details means big savings down the road.