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
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
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
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?
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 one or both spouses own a retirement plan, like a 401K or pension plan, a QDRO (Qualified Domestic Relations Order) may need to be drafted in order to tell the retirement plan what to do with the plan. Having a QDRO drafted and processed takes a lot of time and patience. When a spouse has worked and contributed earnings to a retirement plan during the marriage, then those marital … [Read more...] about What Is a QDRO?
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
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
Not every couple needs a prenup or pre-marital agreement. For example, two people getting married out of college who have not accumulated any real assets and never been married before, do not need a prenuptial agreement. On the other hand, couples getting married for the second or third time and who have children from previous relationships and assets that are owned as their separate … [Read more...] about How a Pre-Marital Agreement Protects Finances
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
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
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
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?
In a traditional divorce, parents are often battling between themselves about how to take care of the children, both financially and emotionally, when the family is no longer living together in one household. One of our goals with our clients is to assist them with a post-divorce budget that is related to the children in ways that decreases the contention in a divorce and puts the focus on … [Read more...] about Children, Divorce and Money
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
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?
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
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