When divorcing couples begin dividing their assets, they often find their retirement account or accounts are the most valuable thing they own. Even if the account is an employer-maintained benefit, such as a 401(k), IRA, profit-sharing plan, or another such account, and is in the name of only one spouse, the earnings in that account that occurred during the marriage are community property in … [Read more...] about Divorce: Dividing Retirement Funds
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How To Do A Business Evaluation For A Divorce
When income that is generated during a marriage comes from a business owned by one or both parties, there should be a business evaluation conducted as part of the process of determining the overall value of the estate. There are several methods for valuing a business. Which valuation approach works best for purposes of family law depends on the nature of the business at issue. The Market … [Read more...] about How To Do A Business Evaluation For A Divorce
Divorce: Tax Refunds and Stimulus Checks
A question often arises as to how to handle tax refunds and stimulus checks received while a married couple is going through the divorce process. These government funds generally come by way of direct deposit. The account which receives the deposit depends on the way the taxes were filed. Married Filing Jointly If the most recent tax return was “married, filing jointly,” the account listed … [Read more...] about Divorce: Tax Refunds and Stimulus Checks
Rebuilding Finances After a Divorce
Most people find their finances have changed dramatically following a divorce. The money that in the past supported one household now must be stretched to support two. This is especially true if one party is paying spousal support to the other. It may be helpful to work with a financial advisor or certified public accountant (CPA) to help you understand how you originally built wealth and to … [Read more...] about Rebuilding Finances After a Divorce
The Importance of a Pre-nuptial/Pre-Marital Agreement
A person newly engaged may sometimes get intimidated by the idea of a pre-marital or a pre-nuptial agreement. But they need to understand that a prenup can be looked upon as an insurance policy. You hope not to use it, but glad it is in place in case you ever need it. The document is really an outline that clearly defines what will happen financially if the parties ever do get … [Read more...] about The Importance of a Pre-nuptial/Pre-Marital Agreement
The Privacy Benefit in Collaborative Divorce
When a spouse files a divorce petition in court, it becomes part of a public record that is available to any member of the public to review. In a standard litigation process, that becomes true of any documents required by the court for it to make decisions in the case. A Collaborative Divorce is different and allows the couple to keep their information private. What Happens in a Traditional … [Read more...] about The Privacy Benefit in Collaborative Divorce
Navigating Financial Issues in a Gray Divorce
A gray divorce is a euphemism for people getting divorced who are over the age of 50. The issues that need to be resolved are different in a gray divorce than in divorces between younger couples. Since there are generally no minor children, the main issue the couple faces is division of assets. Too often, one party may try to hide assets from the other. Financial Issues Facing Those … [Read more...] about Navigating Financial Issues in a Gray Divorce
Pre-Divorce Financial Checklist
It seems that in almost all cases of divorce, one party has been the one who handled the money and can readily provide necessary financial documents to legal counsel handling the divorce. The other party is often left in the dark and should sit down with the CPA who prepared the tax returns and go over the documents in order to discover the true financial situation. Here are some of the items that … [Read more...] about Pre-Divorce Financial Checklist
What to Do If Your Business Partner is Getting A Divorce
When you originally put together your partnership agreement, it is likely you did not think about what you would do if your business partner got divorced. If you did, and it is happening now, review your partnership contract and comply with its terms. If you did not include a provision, you may be stressed thinking about how your partner’s divorce will affect your business interest. You will … [Read more...] about What to Do If Your Business Partner is Getting A Divorce
Preparing or Tuning an Estate Plan
Process Outline - Estate Planning Take a trip together with your spouse to contemplate the following actions and establish the basic plan:Remember, in a properly planned estate a couple can give away during their lifetime or at passing over $10,000,000 without incurring any gift or estate tax.Do you wish to pass assets during your life time?To Charity?To heirs? Establish living … [Read more...] about Preparing or Tuning an Estate Plan