Divorce is never easy, and the financial side of things can be especially tricky. As a Certified Divorce Financial Analyst®, I've seen people make some of the same mistakes. Here are five common financial pitfalls to avoid during your divorce: 1. Not Knowing Your Financial Picture One of the biggest mistakes is not having a clear understanding of your finances. Before you start the … [Read more...] about Five Financial Mistakes to Avoid in Divorce
Finances in Divorce
Keeping Your Personal and Financial Information Private During a Divorce in California
When going through a divorce, most people prefer to keep their personal lives and financial information as private as possible. It’s shocking to most of my clients when they learn just how much information is open for public viewing at their local courthouse. So how do you keep your personal information out of the public eye in a California divorce or legal separation? A few facts about … [Read more...] about Keeping Your Personal and Financial Information Private During a Divorce in California
The Role of a Forensic Accountant in a High Net-Worth Divorce
A divorce involving a high net-worth couple presents unique challenges. In such cases, a forensic accountant is almost always needed to unravel complex financial issues. The size of the net worth in a case is a major factor in determining how involved a forensic accountant must be. Often, high net-worth divorces require a comprehensive business evaluation conducted by an expert accountant who … [Read more...] about The Role of a Forensic Accountant in a High Net-Worth Divorce
Financial Obstacles in The Divorce Process
Family finances are often a major obstacle to reaching a divorce settlement. There are several key financial challenges that you and your spouse may encounter when navigating divorce. In the Collaborative Divorce and mediation processes, the neutral financial professional plays a crucial role in bridging the financial knowledge gap and helping both parties make informed decisions about their … [Read more...] about Financial Obstacles in The Divorce Process
Five Common Signs of Financial Fraud in Divorce
In some divorce cases, a spouse may attempt to hide assets or engage in fraudulent activities to gain an unfair advantage during the division of property. Detecting signs of financial fraud is crucial to ensure a fair and equitable outcome. Ron Anfuso is a Los Angeles Divorce Forensic Accountant who can help uncover situations of financial fraud. In this blog post, we will explore common … [Read more...] about Five Common Signs of Financial Fraud in Divorce
The Hidden Costs of Divorce: What You Need To Know
Divorce is a challenging experience that can often come with unexpected costs. While many people are aware of the obvious expenses such as attorney's fees and asset division, there are several hidden costs that are often overlooked. Hidden Cost: Taxes One significant hidden cost is taxes. When dividing assets such as a community property home or a retirement account, tax implications can … [Read more...] about The Hidden Costs of Divorce: What You Need To Know
Divorce: What About Credit Cards in Divorce?
There are many issues that need to be resolved in a divorce such as child Custody and Support and division of the family’s assets. Division of the family debts is sometimes overlooked as an issue that needs to be resolved. Credit cards are one such debt that can be a source of contention during a divorce. Credit cards can be used for a variety of reasons, including household expenses, … [Read more...] about Divorce: What About Credit Cards in Divorce?
How to Address Financial Inequalities in a Divorce
Divorce can be a difficult process, especially when there are financial inequalities between the two spouses. In such cases, it is essential to ensure an open and honest exchange of information so that both parties have a clear understanding of the finances. In most families, one spouse may have more knowledge and skill regarding the family finances. It is essential to correct the power … [Read more...] about How to Address Financial Inequalities in a Divorce
The Hidden Costs of Divorce
When people think of the cost of divorce, they generally only think of how much money it is going to cost — how much they are going to have to spend out of pocket. They also think about how much money they may lose in the division of assets. The focus is on finances. But there are hidden costs to divorce that every divorcing couple should consider. The Emotional Toll People often don’t think … [Read more...] about The Hidden Costs of Divorce
How To Financially Survive Divorce
Even when couples know that divorce is inevitable, many are afraid to venture forward out of fear that they will not financially survive. Issues such as how to split the assets and divide the cash flow may be of concern, but with the help of neutral financial professionals, those fears can be dispelled, and one can financially survive a divorce. From the Beginning of the Divorce Working with … [Read more...] about How To Financially Survive Divorce
When Should You Use a Forensic Accountant For Your Divorce?
Some divorces have complex financial issues. In such cases, a forensic accountant can be called in to analyze financial documents to help divorcing couples in the collaborative process, or in court when litigation is involved, to determine the value of assets and how those assets should be divided. They also assist in decision-making on child and spousal support. Not every divorcing couple … [Read more...] about When Should You Use a Forensic Accountant For Your Divorce?
Advantages of a Neutral Financial Professional in a Divorce
When couples begin a marital dissolution and choose the Collaborative Divorce process, we often find that one person is thoroughly knowledgeable about their finances and the other one knows very little. In these cases, one spouse has paid the bills during the marriage and has been in charge of investments. That person has taken care of all the financial obligations. Suddenly, when the divorce … [Read more...] about Advantages of a Neutral Financial Professional in a Divorce
What Makes a High Asset Divorce Different?
The divorce process is always stressful even for couples who agree a divorce is in their best interest. The stress is compounded when there are a lot of assets involved. The one who generates most of the income fears losing a lot of money. The one who generates less fears not getting enough. In an ordinary divorce, couples may own a home, one or two vehicles, and maybe a … [Read more...] about What Makes a High Asset Divorce Different?
How To Save Money in Your Divorce or Ways To Waste It
No one would disagree that saving money, time, and energy in your divorce is good for mind, body, and wallet. If your goal is efficiency and being mindful about how your actions affect the outcome of your divorce in terms of money in the bank and time it takes, just do the opposite of these top tips. Sweat the big stuff and the small stuff.Fight over every single thing, no matter the … [Read more...] about How To Save Money in Your Divorce or Ways To Waste It
Financial Needs as You Begin the Divorce Process
When a couple files for divorce, they both have some immediate financial needs they must work out. Their income has been supporting one household and they must figure out how that income will support two households. Even if one of those households becomes a small apartment that one spouse moves into, it still increases the couple’s expenses. California Temporary Restraining … [Read more...] about Financial Needs as You Begin the Divorce Process
Tax Filing Issues in Divorce
Two tax issues frequently need to be addressed in divorce: One, if there are qualifying children, which parent gets to claim the children as dependents? Two, which parent may be entitled to claim Head of Household filing status. The following is a general discussion of the rules. Dependency Exemptions The IRS rules provide that the “custodial parent” is the parent entitled … [Read more...] about Tax Filing Issues in Divorce
Common Financial Fears in Divorce
Going through a divorce is stressful in many ways. One of the most common stressors in a divorce is financial fear. Both spouses have worries or fears about what the financial future holds for them. Common financial questions each divorcing spouse asks themselves, their attorneys, and financial professionals are: What am I going to walk away with?What am I going to have after … [Read more...] about Common Financial Fears in Divorce
Dividing Cryptocurrency and NFTs in a Divorce
A relatively new issue that is coming up in a divorce is how to divide digital assets. These are non-fungible tokens (NFTs) like bitcoins. If the spouse who has been buying these digital assets reveals the assets as he or she is required to do according to the law, they can be identified and divided equally between the spouses if they were purchased with community property … [Read more...] about Dividing Cryptocurrency and NFTs in a Divorce
Why Does Divorce Cost So Much?
Unfortunately, when a couple goes through the divorce process, emotions run high and are often the driving force for running up the costs. Traditional litigation is notorious for taking a long time and being quite expensive. A Collaborative Divorce is less stressful and less costly. Costs of Traditional Litigation In traditional litigation, each spouse has their own private … [Read more...] about Why Does Divorce Cost So Much?
Rebuilding Your Finances After a Divorce
Going through a divorce can play havoc with your finances. Generally, the same amount of money that supported one household must now be divided to support two of them. This often means, at least for a time, each individual’s net worth and household income will be reduced. If a couple can work together in a Collaborative Divorce process, you can establish new financial goals and … [Read more...] about Rebuilding Your Finances After a Divorce
Tax Issues in a California Divorce
When divorcing couples are discussing spousal support in California, they need to be aware of the tax implications of their divorce. Federal laws enacted by congress and enforced by the Internal Revenue Service (IRS) are different than laws enforced by the California Franchise Tax Board (FTB). Spousal Support and Taxes IRS rules. Under federal law, a person paying spousal support may … [Read more...] about Tax Issues in a California Divorce
How Expensive Will My Divorce Be and How Long Will It Take?
The cost of your divorce case and how long it takes are mostly in the hands of you and your spouse. The cost and length of your case are dependent on the three Cs: ConflictCooperationComplexity Conflict. Definition: a serious disagreement or argument, typically a protracted one. The more conflict, the longer and more expensive your case will be. It’s not about … [Read more...] about How Expensive Will My Divorce Be and How Long Will It Take?
Communicating as a Financial Divorce Professional with Your Clients
In a collaborative divorce, spouses who can communicate with a neutral financial professional is key to helping them understand their current financial situation. This helps them reach a settlement agreement that is in the best interest of both parties. There is often an imbalance in that one spouse has less financial knowledge than the other. The collaborative process works to … [Read more...] about Communicating as a Financial Divorce Professional with Your Clients
4 Keys for Working with Your Divorce Financial Professional
One of the first things that a divorcing couple needs to do is gather your financial information. In the divorce process you will both need to have a complete picture of your financial situation before you can begin to work on a settlement agreement. In a Collaborative Divorce, this step is easier than in traditional litigation because you have the assistance of a neutral financial … [Read more...] about 4 Keys for Working with Your Divorce Financial Professional
Cryptocurrency, Divorce and Fiduciary Duty
Many people hear the term “fiduciary duty” and think it only applies to business relationships. In fact, divorcing spouses owe a fiduciary duty to each other. This means they must deal with each other fairly in the division of their assets, even when the assets include cryptocurrency. The Meaning of “Fiduciary Duty” in a Divorce The law imposes a strict fiduciary responsibility … [Read more...] about Cryptocurrency, Divorce and Fiduciary Duty
Dealing with Hidden Assets in a Collaborative Divorce
People choose Collaborative Divorce over traditional litigation when they want the divorce to be more amicable. The hallmark of a Collaborative Divorce is honesty. Both spouses are expected to provide full disclosure about all assets, both those known to be community property and those that they claim are separate property. In rare cases during the collaborative process, one party … [Read more...] about Dealing with Hidden Assets in a Collaborative Divorce
Divorce: How Much Will It Cost?
One of the first questions clients ask is, “How much is this divorce going to cost?” There is no easy answer to that question. Each divorce is different. Each family has different needs and topics to discuss, making it almost impossible to accurately give an estimate of costs. However, a divorce where the couple can come to their own settlement agreement (without a lot of … [Read more...] about Divorce: How Much Will It Cost?
Options for Understanding the Finances When Getting Divorced
In the last twelve months, with the pandemic impacting many families’ financial bottom line, I have had more people concerned about the financial impact of a divorce or separation. The financial strain of job loss or impact illnesses has had on families is evident. The pandemic has created financial chaos for many people. Families that have been used to having their finances run … [Read more...] about Options for Understanding the Finances When Getting Divorced
How is Child Support Calculated in California?
Here is an overview of the default child support laws in the State of California. Every state has different support laws, and the following overview is specific to the laws of California. Parties can agree to whatever child support amount and calculation they would like – but in the event parties cannot agree otherwise, below is the default child support … [Read more...] about How is Child Support Calculated in California?
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
Marital Waste: When Spending is More Than Just a Shopping Spree
If your marriage is ending and you’re splitting on bad terms, you may be worried that your ex will become spiteful or resentful and act on these actions. This isn’t uncommon in bitter contested divorce; but what is a problem, is if that resentment results in anger-driven decisions to hurt you, specifically in a financial way. Consider for a moment your bank accounts and the fact that … [Read more...] about Marital Waste: When Spending is More Than Just a Shopping Spree
Fact or Fiction? 10-year Marriage Guarantees Alimony (spousal support in California) for life
Marital happiness lasts for approximately seven years before the average spouse begins to get restless and stray from their vows of faithfulness – or so says the theory of “The 7-Year Itch.” It probably isn’t a good idea to put significant stock in a theory popularized by a movie starring Marilyn Monroe, but the concept is not complete fiction. The underlying truth of this theory is that … [Read more...] about Fact or Fiction? 10-year Marriage Guarantees Alimony (spousal support in California) for life
How is Child Support and Spousal Support Determined in California?
The good news is that a Collaborative Divorce allows you to be creative in determining what financial arrangements would work for your family, including child support and spousal support. But if you are interested in learning about the default child support and spousal support laws in the State of California, this article will give you an overview. Child … [Read more...] about How is Child Support and Spousal Support Determined in California?
What is the Real Cost of Divorce?
Facing a divorce isn’t easy, and you probably have a lot of different concerns. One of those concerns is certainly the cost of getting a divorce. And with good reason — Business Insider reports that the average divorce in the United States today costs a whopping $15,000. That said, there are a lot of different factors at play, and your own divorce could end up costing well under the … [Read more...] about What is the Real Cost of Divorce?
What Do You Need to Know About Divorce, Money and Taxes?
When people divorce, how to deal with money and taxes can be two of the most contentious topics of discussion. One of the advantages of the Collaborative Divorce process is the opportunity to work with a neutral financial professional who helps spouses look at the financial big picture as they work to reach agreement. Couples want to know how to allocate the family finances in a way that … [Read more...] about What Do You Need to Know About Divorce, Money and Taxes?
Dealing with Debt during Divorce
Dividing property incident to divorce is not just putting your assets into one pile for each spouse. You also must divide the debt that the community has accumulated during the course of your marriage. In California, community property includes all assets and liabilities incurred from the date you married until the date you separated other than separate property that was given … [Read more...] about Dealing with Debt during Divorce
Will I Lose My Health Insurance When I’m Divorced in California?
Can I keep my current spouses’ insurance, what is this going to cost me and can I be denied? Weekly I receive emails from clients across CA regarding options for Health Insurance. Fortunately, with the ACA – The Affordable Care Act under the Obama Administration, everyone Qualifies for coverage regardless of their previous or current health condition. Prior to this Act, 85% of … [Read more...] about Will I Lose My Health Insurance When I’m Divorced in California?
How Much Does a Divorce Cost in California?
It depends. Annoying answer but true! In California, family law attorneys and mediators bill clients hourly rates ranging from $300 - $800 per hour, depending on the professional’s years of experience, location and reputation in the community. In my opinion, the cost of a divorce will vary depending on the following variables: The process option chosen;The professionals … [Read more...] about How Much Does a Divorce Cost in California?
Financial Disclosures during my Divorce, really? Do I have to?
Yes, no matter what process you choose for your divorce, the California Courts require full financial disclosure of all income, assets, and expenses. Honestly, I think this is an important requirement even though it can be difficult and cumbersome. In mediation or collaboration where both parties are working together the financial disclosure process can be less complicated because there … [Read more...] about Financial Disclosures during my Divorce, really? Do I have to?
What will my Divorce cost?
One of the most common questions I get asked is, “What will the divorce cost?” I believe that it is one of the most important discussions everyone should have with their attorney and spouse. Getting educated on what type of budget needs to be established for the family that is going through a divorce must be completed. The budget will be driven by what process you and your spouse … [Read more...] about What will my Divorce cost?
Alphabet Soup of Getting Professional Help with Your Divorce Finances
Getting good financial advice as part of your divorce process can be one of the most important decisions you make. During this highly emotional time you are making some of the most important financial decisions of your life. High emotions and important financial decisions, a good match??? Not usually. So who do I trust? It depends, but a simple answer is a professional trained in … [Read more...] about Alphabet Soup of Getting Professional Help with Your Divorce Finances
The Benefits of a Collaborative Approach in Division of Assets and Debts
Collaborative Practice utilizes a team approach to the divorce process. As a Certified Financial Planner (CFP) and Certified Divorce Financial Analyst (CDFA), I want to share with you how I see tremendous value in a team approach to asset division. The typical litigation model using a divorce attorney includes a listing of your assets and a “reasonably fair” division worked out by the … [Read more...] about The Benefits of a Collaborative Approach in Division of Assets and Debts
Financial Disclosures in Collaborative Divorce
What is Disclosure? If you get divorced in California you have to Disclose… period, end of story. What does that mean and is anything different in a Collaborative Divorce? “Disclosure” refers to financial disclosures. What do we have, own, owe and make. It’s an inventory of everything you own (assets), everything you owe (debts), and all of the income for both … [Read more...] about Financial Disclosures in Collaborative Divorce
Avoiding Common Money Mistakes in Your Divorce
There are no easy do-overs in divorce. The courts do allow revisiting child support and spousal support in some situations, but wouldn’t it be better to do it right the first time? In most couples, one member is more familiar with the finances than the other. This is perfectly normal, but in divorce, both people need to understand the finances to properly divide and manage their money in the … [Read more...] about Avoiding Common Money Mistakes in Your Divorce