Getting divorced (and doing it well) is an expensive task.If someone were to do the impossible task of removing all the emotional complexity out of, it would be a lot like dissolving a business partnership. You must decide how to disentangle and rearrange all these things: FinancesHome(s)CarsKids schedules (maybe)Retirement plan(s) Most people struggle to handle tough decisions like this at any time - let alone when things are so emotionally difficult.ADDITIONALLY: There is financial … [Read more...]
3 Smart Steps to Protect Your Finances in a Grey Divorce
Did you know divorce came in different colors? Puns aside, “grey” or late-life divorce has become a considerable enough trend to warrant its own category. Every couple’s circumstances are unique: some have grown kids, others are childless; some have built up a considerable next egg while others live paycheck to paycheck. What unites them all is a decision to untangle a family life in their 50’s. Sociologists argue whether this trend is caused by increasing life expectancies, a wider acceptance … [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...]
Ten Financial Decisions You Must Make During Divorce
You will face important financial choices during a divorce, including documenting what you own, dealing with the family home, dividing marital property, proving separate property, separating pensions, ensuring access to credit, buying health insurance, determining child support or alimony, allocating debt, and planning your financial future. 1. Determining What You Own The first step is to document your assets and debts. Collect bank statements, brokerage accounts, tax returns, insurance … [Read more...]
Solving Debt in Divorce: You Won’t Get These Options in Court
For couples facing a divorce, it is often a time filled with feelings of sadness over the loss of the marriage relationship and anxieties about the future. These feelings can be further exacerbated when there is substantial marital debt. There are no easy answers for these situations, but in “no court” settlement processes, such as collaborative divorce, couples can often creatively approach the topic of their debts and develop options for resolution that are not usually available in … [Read more...]
3 Creative Ways to Divide a Marital Estate
For couples facing a divorce, it is often a time filled with feelings of sadness over the loss of the marriage relationship and anxieties about the future. These feelings can be further exacerbated when there is substantial marital debt. There are no easy answers for these situations, but in “no court” settlement processes, such as collaborative divorce, couples can often creatively approach the topic of their debts and develop options for resolution that are not usually available in … [Read more...]
Splitting Retirement Assets – Don’t Try This at Home!
Some things are meant to be shared, not divided. That statement is particularly true of retirement assets. 401(k)’s, IRAs and pension plans are notoriously difficult to split. Add in tax consequences and conflicting advice you might be getting from your family, neighbors, attorneys and the Internet, and you have a financial disaster in the making. Here is what you need to know to make good decisions. 1. Retirement funds added during the marriage are typically considered marital … [Read more...]
Isn’t Litigation the Best Option If I Don’t Trust My Spouse?
How can I know if my spouse is hiding assets? Full Collaborative Disclosure is the answer. How can you be certain your spouse has disclosed all marital assets during a divorce? The answer depends on how you divorce. In a litigated divorce, there is no duty of full disclosure, while in a collaborative divorce, spouses agree to voluntarily disclose all relevant information. A financially complex divorce generates conflict and may produce dishonesty as each spouse tries to get what they feel is … [Read more...]
What About the Money?
In the process of divorce, the issue of money is not only important in the current situation, but can lend to opportunities to put yourself on a productive path subsequent to the process. How does a neutral financial professional (NFP) help in the Collaborative process? Let’s explore. First, the NFP works for the process, and not either party. Neither spouse is created equal, but they are treated equally. Most likely, there is inequality in the handling of the family finances, even in the … [Read more...]
