When couples divorce, long-term financial priorities sometimes receive the least attention. Many money issues are about immediate needs – where to live, how to handle everyday expenses and if there are kids, how to support their needs in two households, not one. This is why retirement planning can face serious obstacles post-divorce. In marriage, a…
Divorce and Finances
Divorce Can Mean a Trip Down the Economic Ladder for Women
Divorce can be a one-way ticket down the road to financial instability for many women, especially for those who are middle class or low-income. It can mean a loss of work hours, more time (and expense) devoted to childcare and a cold slap in the face when it comes to finding a job or finishing…
9 Tips for Dividing Your 401(k) During a Divorce
Dividing a 401(k) for a divorce settlement is less painful when you know about the plan and take the right steps that ensure both people are satisfied. A 401(k) plan is marital property, just like other possessions that need to be divided. Here are nine ways you can handle assets in the plan during a…
Managing High Asset Divorces in Massachusetts
All divorces can be stressful and important to spouses facing a divorce. However, handling divorces with a high asset value has some additional inherent complexities that not all spouses, or even all attorneys, are aware of. When addressing high asset divorces, there are complicated issues that have to be addressed within alimony, property division, taxes,…
How to Protect Your Company From Your Business Partner’s Divorce
Before you formed your business partnership, did you vet your partners’ marriages along with their bank statements? You may not consider it until divorce proceedings are underway, but your partners’ spouses likely own a part of your company, whether you want them to or not. In my day job as a financial strategist specializing in…
Dependency Tax Exemptions and Divorce
During the course of a divorce, there are many issues that spouses have to resolve: property division, alimony, child custody, child support, medical insurance, and taxes. One after thought of these many issues is the child dependency tax exemption. In a divorce, spouses can agree how to allocate the dependency tax exemption. For example, if…
6 money mistakes to avoid in a divorce
January can be an opportunity for a fresh start. And for some, that means ending unhappy marriages. In fact, January is known as “divorce season,” the top month for divorce filings. For some, the change will be welcome, while for others it will come as a shock when they learn their spouse is leaving. If…
Getting The Most From A High-Dollar Divorce
Divorce is almost always an emotionally taxing experience. Divorces that involve millions (or billions) of dollars have an added level of intensity and drama. It’s not uncommon for the parties in a divorce to act in irrational ways that may be counter to their own best interests or to make simple financial errors that can…
Taxes and Divorce, What You Need to Know
Finances and taxes are a significant issue during divorce, especially when children are involved. There are also special rules in the tax code that govern divorce and separation. It’s important to be apprised of these rules. Dependency Exemption. If you are the custodial parent of the children, you can claim a dependent exemption of $3,950…
Ready to call it quits on your marriage? A little early planning can go far in helping you protect your finances
“Last year I saw a 10 to 15% increase in consultations in January, peaking at a more than 40% increase in March,” says Lisa Decker a certified divorce financial analyst in Kennesaw, Ga. “I refer to January as the beginning of ‘Divorce Season.’” If you’re among those who’ve decided that 2015 is the year you’ll…
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