For most people, the divorce process is emotionally draining and mentally exhausting. Many people describe it as a time of being frozen, numb, or moving in slow motions. Despite that emotional and mental trauma, you will be expected to go through your finances with a fine-tooth comb to ensure that your settlement agreement is fair and equitable. With divorce brain, that’s easier said than … [Read more...] about 5 Common Money Mistakes in Divorce
Divorce and Finance
Going through a difficult divorce during the COVID-19 pandemic can be bad enough, but your difficulties will multiply if you lose your job or face expensive medical care. You may need to file for bankruptcy as well as get a divorce. Even if you don’t catch the virus or lose your job, divorce adversely affects most family finances and is the leading cause of bankruptcy in America. … [Read more...] about Filing For Divorce and Bankruptcy
It’s a great question. And a question for which everyone wants to know the answer, but no one seems to be able to. The truth is that it can be answered, just not with a hard, up front number. The answer depends in part on which process you choose and how much you and your spouse are willing to work together. Let’s do a little compare and contrast. First: The Traditional Litigation Route This … [Read more...] about How Much Does Divorce Cost?
Divorce has significant effects on your taxes. For example, if your divorce is final by December 31 of a tax year, the IRS will consider you unmarried for that entire year, so you must file individual rather than joint tax returns. Moreover, due to new tax legislation, alimony is no longer deductible for the person paying and it not taxable to the recipient. It’s possible to go … [Read more...] about Five Things To Know About Taxes And Divorce
Divorce is commonly seen as one of the most stressful experiences one will ever go through. Along with all of that stress, you are also making financial decisions that will most likely affect the rest of your life and perhaps the lives of your children as well. For that reason, it’s always a good idea to get the advice of a Certified Divorce Financial Analyst™ or some other financial … [Read more...] about Top 3 MORE Overlooked Financial Issues During Divorce (Part 2)
Contrary to what many people think, Texas does have “alimony,” and the Texas Family Code calls it spousal maintenance. However, the Texas Family Code narrowly defines when spousal maintenance can be ordered by the court. When clients want or need spousal maintenance, I suggest using the Collaborative Divorce process. Collaborative Divorce provides a transparent process that enables clients, … [Read more...] about Understanding Alimony in Texas
Divorce is commonly seen as one of the most stressful experiences one will ever go through. Along with all of that stress, you are also making financial decisions that will most likely affect the rest of your life and perhaps the lives of your children as well. For that reason, it’s always a good idea to get the advice of a Certified Divorce Financial Analyst™ or some other financial … [Read more...] about Top 3 Overlooked Financial Issues During Divorce
Although divorce rates are reported to be declining, many marriages still end in divorce. Most people know that a divorce can be emotionally draining, but they don’t always realize how financially draining a divorce can be on both parties. One of the biggest decisions to make while going through a divorce is what will be done with the family home. This is not just a financial decision, but also … [Read more...] about Qualifying Income Issues in Divorce
There are many things we think will NEVER happen to us. One of them would certainly be Divorce, because who would get married knowing it would set them up to go through one of the most difficult and emotionally draining periods of their life? The second NEVER, which sadly does happen, is that we are all at risk of becoming incapacitated or worse, dying before the Divorce is over. And while we … [Read more...] about Filing for Divorce? Time to update your Estate Plan!
A credit score is an important part of your financial well-being. So, it’s no wonder that many clients ask me whether divorce will negatively affect their credit score. After all, a solid credit score post-divorce can allow for job mobility and financed purchases, while a poor score can limit your options. The answer to this question isn’t a straightforward “Yes” or “No”. Divorce is complex … [Read more...] about Ask Your Financial Planner: Will Divorce Affect My Credit Score?