It goes without saying that an important step in the divorce process is the equitable division of your marital property. Although property division between you and your spouse can be resolved relatively quickly and cost-effectively if you do not have significant assets or debts, the task of classifying and dividing property and verifying income are more difficult if complex financial assets are involved. Read More
I am Filing for a Divorce and I would like to Keep the House for Me and My Children. But I Am Not Sure if I can Afford it. What Should I do?
There will likely be three options when it comes to your home. These will include: selling the house, buying out your spouse, or having your spouse buy you out. The best solution for you will depend on both personal and financial considerations. It is very possible that you may simply not be comfortable remaining in your current home, or that you will not be able to or be interested in taking care of the home. On the other hand, making the decision to stay may offer your children a sense of continuity. Read More.
In order to answer this question regarding your financial ability to support yourself and your children after you and your spouse separate, we will need to have detailed information regarding your current and future income and expenses. Please refer to How Should We Divide Our Assets? for details on these items. Read More
Divorce laws vary by state, if you and your spouse cannot come to an agreement on your own, a judge will follow the state’s child support guidelines and determine the financial resources that you will receive if you are the custodial parent. For example, in Pennsylvania and Florida, the child support guidelines include these and other factors: the age of the children, the parents’ income, the cost of childcare, health and dental insurance, and the number of dependent children. Keep in mind that your respective contributions to college expenses will also need to be addressed in the divorce settlement agreement. Read More
From a financial perspective, you will definitely need to analyze any long term, after tax effects of the divorce settlement options you have. This is where a CFP® and CDFA™’s guidance and knowledge will help. We can run the numbers based on various scenarios and help you decide the best option before you sign the settlement agreement. Read More
I am Expecting to Receive some Money from My Divorce Settlement. Is it Better to Get it in a Lump Sum or Over Time?
Here are some pros and cons to consider:
If you don’t trust your spouse to make reliable monthly support payments, a lump-sum payment will remove this issue. However, there are ways to collateralize spousal-support payments and significantly reduce this risk. With a lump-sum payment you have immediate access to the funds, and this gives you the flexibility to purchase a new home instead of renting, or possibly pay off debts with high-interest-rates such as credit cards. Read More
I Know My Husband has a Pension. Should that Pension be Included in My Divorce Settlement and How Much should I Expect to Receive?
Although it is not often thought of as such, a retirement plan could be the biggest financial asset divorcing couples hold. For sure, your husband’s pension should be included in your divorce settlement. Read More
Believe it or not there is one simple way to keep your bills from your divorce lawyer, accountant or divorce financial analyst under control. The answer: have civilized conversations with your spouse. Try to work out as many issues as possible yourselves. The more you do this, the more you will save in professional fees. On the other hand, the more you fight, and the more you hide from one another, the greater the likelihood that your divorce will take longer, and the more it will cost. Read More