When you are facing a life changing decision like divorce, what do you think you will find more valuable: Someone to make you feel better by saying that nothing has to change, or someone who will give it to you straight, no chaser? I feel strongly that not enough people in the world of divorce professionals will truly tell it like it is. They tell you want you to hear which can lead you to make some HUGE mistakes. Easily avoidable mistakes…Mistakes that need not happen! I … [Read more...]
5 Common Money Mistakes in Divorce
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 done! Even if you feel like you are clear headed, here are a few of the most common money mistakes to … [Read more...]
Divorce and Money – Covering All The Bases
I have been providing business valuations, characterization analysis and financial services for divorcing couples for over thirty years in Central Texas. I often tell clients considering a divorce that I believe the Collaborative process is the better of the bad, when compared to going through the challenges of a litigated divorce. There are many benefits for couples working toward their new normal when using the Collaborative divorce process. The first part on the Collaborative divorce … [Read more...]
Divorce Finances – 4 Tools To Help You Financially
Saying divorce can mess with your mind is a substantial understatement. I know because I have been there. It is as if my brain was removed from my head and placed beside me for about a year. (It does come back!) The intelligent together woman I once was turned into an emotional, brain-fogged, unorganized basket case. If you are in the middle of a divorce you may be able to relate. So how do you navigate your financial future in the midst of a trauma induced … [Read more...]
When Putting Off Divorce Becomes a Liability
Divorce can be a time of unpleasant conversations, turmoil, and arguments. If you are daydreaming about packing a bag and leaving this mess behind for a few weeks, you are not alone. In fact, many couples choose to separate before divorce. For those who have the financial means to do it, this might mean that one of the spouses moves out of the family home to live elsewhere. There are definite benefits to the moving-out decision. Separate living arrangements can give each spouse a haven to … [Read more...]
Financial Planning for Post Divorce
Divorce is an uncomfortable time for most couples. Even if you are going through the divorce using a collaborative approach, you probably don’t know what to expect from the split – which can be nerve-wracking. If you are anxious about your first meeting with the neutral financial planner, here’s what you need to know to arrive well-prepared and confident. Solo or together? Before your head into that first meeting with the neutral financial planner, think about whether you want to attend the … [Read more...]
5 Keys to Financial Planning for Divorce
No one expects to get divorced when they marry, but half of all American marriages end in divorce. Because Texas is a community property state, all marital property is divided during a divorce. Without careful planning, proceeds from of your separate property could be characterized as community assets and divided during the divorce. There are steps you can take to avoid this problem, if you know what to do. The best strategy is to avoid getting divorced, but that’s not always possible. Well … [Read more...]
Ask Your Financial Planner: How Should We Transfer an IRA in a Divorce?
Many couples make the mistake of assuming that IRA balance transfers in a divorce are easy – just because they don’t require a Qualified Domestic Relations Order or QDRO. It is true that IRA transfers can be done smoothly and without tax consequences to either spouse, but that outcome requires advance planning and careful execution. Here is what you need to know. IRA transfers in a divorce are referred to as a “transfer incident to divorce” to distinguish them from the transfer of qualified … [Read more...]
Refinancing During Divorce
For divorcing couples whose family home is community property, it’s often their most valuable asset, and who gets to keep it can be a contentious issue. It’s usual for the spouse who has primary custody to want the children to remain in their home, attend the same school, and stay close to friends. However, the divorced spouse can’t always afford to keep the family home because it’s too expensive, so they have to sell, divide the proceeds, and buy smaller homes in the same … [Read more...]
How Can You Get Alimony in Texas?
There are two types of support payments available in Texas: spousal maintenance and contractual alimony. Spousal maintenance is authorized by the Texas Family Code and may be court-ordered if the parties meet certain legal criteria. By contrast, contractual alimony is based on IRS provisions and an agreement between the parties. Spousal maintenance payments are strictly limited in amount and duration while contractual alimony payments can be for any amount and length of time. 1. … [Read more...]
