281-505-8177
CONTACT US

SCHEDULE A
FREE CONSULTATION

Contact Us: 281-505-8177

Divorce Strategies Group

Denise French

divorce

Health Plans – Open Enrollment & Divorce

By

If you work for a company which offers health insurance you probably already know about open enrollment.    Updates you choose during this time period will determine your health, dental and vision insurance for the upcoming year and your tax savings in deductible plans like Health Savings Accounts (HSA’s).   While the timing of open enrollment can vary with different employers, open enrollment is generally the period between November and mid-December.  During this time you are able to make changes to your health insurance plans without a major life change.  You can choose to renew your participation in your company’s current insurance plans, switch to a different one, and make changes to participants on your plan for the upcoming year.  Even though it can be tempting to select the plan you had last year so you don’t have to put in much effort, I’d encourage you to pause for a moment and consider if that’s really the best option from a benefits, tax, and budgetary viewpoint.

It Is important to remember if you are still in the midst of divorce, you will likely need to add your current spouse on your health coverage during open enrollment elections for the new year.  If you are under temporary orders (which you likely are) do NOT remove your current spouse from your health coverage right now for the next year.    You can remove your spouse from your health insurance coverage in the new year after your divorce is final as that will count as a major life change.

While you will keep your spouse on your current coverage, it’s important to look at your coverage options and make sure you have the right one for you. After you divorce is final in the new year (or the end of this year), you will remove your spouse from your coverage and this will be your plan for the rest of the year.  Are the deductibles proper for you?  Are you eligible and participating in the HSA? Is this the right plan considering minor children you will have on your plan?  This and other issues are important to consider.

1. Evaluate Life Changes

The amount of coverage you need plays a big role here, especially if you previously covered dependents and/or your spouse and no longer need to or vice versa.  Some other life changes in addition to divorce could make a difference in the plan you choose during open enrollment include births, deaths and medical issues.

2. Review Beneficiaries

Open enrollment time is a good opportunity to revisit the beneficiaries on your accounts.  For example, if you have group life insurance, you may still have your ex-spouse as the beneficiary.  Once the divorce is final you will need to remove your ex-spouse from the beneficiary designation unless you want your ex-spouse to be the beneficiary, and in that case you will need to re-assign that person as the beneficiary after the divorce is final.  Your ex-spouse will be skipped over on a life insurance policy payout unless they are specifically designated in a divorce decree and/or you rename them as beneficiary on the policy after the divorce is final.

We encourage you NOT to list minor children as beneficiaries on an anything.  Minor’s cannot receive payouts without a court appearance and a guardian. Guess who will be the guardian for your children if you pass while they are minors?  It will be your co-parent or ex-spouse unless they predecease you.  If you want to leave the proceeds to your children you will want to create a testamentary trust (included in your will usually and what I have personally) or a revocable or an irrevocable trust.     All of these involve a trip to an estate planning attorneys office which we highly recommend after the divorce is final.

For now, while the divorce is still pending, list your spouse as beneficiary. You are likely under temporary orders to do so. After the divorce is final it’s time to do some estate planning and likely change the beneficiary.

3. Understand the Benefits of the Plans You Select versus Your Needs

This is a great time to make sure you’re getting the coverage you need and you’re maxing out the tax savings from it.   Take the time to review what’s included in your plans, any tax credits or benefits you’re eligible for, and options outside of your employer-provided plans.  That way, you know you’ll actually use everything you’re paying for.  The reality is, it comes down to saving money and being tax-efficient, especially with an HSA.

Another big issue we see with divorcing couples is the deductible and the corresponding out of pocket costs.  You may have a fight on your hands (and undue stress from such a fight for you and your children) if your spouse is living paycheck to paycheck and you opt for a plan with a huge deductible.  Paying hundreds of dollars to meet the deductible for a simple sick visit to the pediatrician may not go well for an ex-spouse on a limited income or at least be an issue to address while you are in divorce proceedings.  Conversely, if there is a large surgery to pay for or a medical issue to be dealt with which is known for the upcoming year, it’s wise to perform a cost analysis on how much it will cost you to have this covered at a higher percent even with a large deductible versus a lower percent of coverage with a lower deductible.

Medical costs can be an enormous part of the annual budget.  The good news is you have coverage and choices, the bad news is sometimes those choices, especially in the midst of a divorce, can be overwhelming.   To make sure you’re getting the biggest benefit, tax savings, and coverage you and your family actually need, talk to a trained consultant who can guide you through the process.

If you’d like me to help you with health care selections during open enrollment season or any other financial related issues, I’ve opened up more Divorce Strategy Sessions on my calendar in late October and early November for those who are not current clients and want some extra help with financial related issues.   In my Divorce Strategy Sessions, we will discuss your needs, your options and your budget so you can make the best choices for you and your future!!  Click here to learn more about Strategy Calls and schedule yours today!

 

Divorce and Retirement Accounts

By Leave a Comment

The valuation and division of retirement accounts in divorce is more complex than most divorcing couples expect.  We frequently see people after the fact who wish they had known better before they signed papers to finalize their estate division.  The details are important.  Below are four common items to know about before you sign on the dotted line.

1. Does a retirement account only belong to the person whose name is on the title?

What if only one spouse worked for most of the marriage while the other was the primary caretaker for the home and children?  If that’s the case, most of the retirement assets are likely only in one spouse’s name. Despite the titling, these retirement assets acquired during the marriage belong to the community estate and are fully subject to division in a divorce.  It is common for clients who own retirement accounts to believe they are entitled to the entire account since it’s in their name. However, money earned during the marriage is a marital asset and subject to division in a divorce within a community property state like Texas.

In contrast, retirement assets earned prior to the marriage are typically considered separate assets and not subject to division in the divorce. In addition, the growth on those separate assets during the marriage is considered separate property (but not the income, yes, it gets confusing). For an accurate appraisal of what portion of a retirement account is separate versus and what portion is marital, a separate property accounting must be conducted.  The burden of proof is on the person making the separate property claim.  All assets, no matter what the title says, belong to each spouse equally if the asset was acquired during the marriage, except for those assets which were inherited or gifted during the marriage or came from a personal injury suit.

2. How will we be taxed if we divide a retirement account?

You are not necessarily taxed on the division of a retirement account. Taxation happens only if you distribute the retirement account outside of the retirement vehicle.  For example, if your spouse has a large 401(k) and you divide it during the divorce, no problem.  You can move these funds into an IRA for yourself without paying any tax and let it continue to grow tax deferred. The same rules apply if you are dividing an IRA.  You only acquire a tax liability when you redeem the funds from the retirement chassy and put them into your bank account or a non-retirement brokerage account.

3. Which retirement assets are best to keep in a divorce?

Not all retirement assets are equal as far as the IRS is concerned, which means what you get to keep in your pocket differs – sometimes substantially- between different retirement accounts! This is a synopsis of the different types of retirement assets we commonly see with divorcing couples in our office.  We also provide a discussion of liquidity as having liquid, available cash is king in a divorce.

Pension Plans

Pension plans typically rate lowest on the list of assets to obtain because those funds are not liquid today (unless you are at retirement age). Further, each plan has its own rules surrounding availability of the pension funds to the ex-spouse. Some funds mandate you wait for your ex-spouse to retire while others will let you retire on your own timeline after you have reached a certain age which can be anywhere from 50 to 65.  Pension plans may also offer a lump sum option at retirement – it just depends on the company or entity offering the plan. There is also the issue of company solvency – will this pension plan even exist when you are retirement age?   It is also important to know if you are entitled to assets if your spouse dies before the pension plan begins – some entities don’t pay you at all if your spouse dies before the payout has started, even with a divorce decree.

It is wise to involve a Certified Divorce Financial Analyst or CDFA in cases with a pension as they can help you understand your options and make those phone calls for or with you.  Know the rules of your potential pension plan before you sign any binding documents

Traditional IRAs

IRA’s typically rank lower on the scale of available, liquid assets because withdrawals are usually taxed at the owner’s highest marginal tax rate and incur a 10 percent penalty until age 59.5 (barring the exceptions of substantially equal periodic payments for those typically 50 and over, death and disability).   There are no divorce exceptions to the penalty as there are in a 401(k) which is why we prefer our clients are awarded the 401(k) assets rather than the IRA assets if there is a choice.

401(k), Profit Sharing Plans and other ERISA-Regulated Plans

ERISA regulated plans (such as 401k’s and Profit Sharing Plans) are one step above the Traditional IRA regarding assets available for liquidity as you can redeem cash from your ex-spouses 401k plan without paying the 10% penalty, but you still must pay taxes.  That is a big savings – especially in larger plans.  You can save thousands in fees by just taking the 401(k) over the IRA if you are in need of cash from the retirement assets.

The down side is a federally mandated 20% withholding on all cash distributions. For example, if you want $80,000 in cash from your ex-spouses 401k, you’ll need to withdrawal $100,000 as 20% ($20,000 in this example) will automatically be forwarded to the IRS.  You are not losing that money – you’d owe it in taxes anyway you are just forced to pre-pay your taxes.  If you do not owe the full 20% at tax time you will receive a refund or if you owe more, they will certainly let you know when you complete your taxes the following year.  The other negative is 401(k)’s can only be awarded via a Qualified Domestic Relations Order or QDRO.  QDRO’s cost an additional fee of $500 – $1,500 and they take time and work to finalize.

ROTH IRAs

ROTH IRA’s are the most advantageous retirement asset for liquidity needs during or after divorce. The principal put into a ROTH IRA can be withdrawn tax and penalty-free at any time for any reason.  The earnings on the ROTH IRA are different.  The earnings can be subject to taxation and the 10% early withdrawal penalty (before age 59.5) but you are able to take all of the principal before touching the earnings.  For example, if you have a ROTH IRA worth $40,000 today which you originally invested 15,000 in; the $15,000 is principal and the other $25,000 is earnings.  In this example, you can redeem the $15,000 with zero penalty and zero taxation while the rest can be left alone to grow.

4. Should you consider the value of retirement accounts after taxes when dividing assets in a divorce?

Many attorneys will “tax effect” retirement plans (discounting the account by the recipient’s marginal or effective tax bracket). Left unchecked, the spouse receiving more of the retirement accounts may benefit (possibly unfairly) in negotiations from this practice.  However, if your spouse is not playing fairly and trying to stick you with all the retirement accounts while they take all the cash, a tax effecting is in order.  Tax effecting can be as simple as taking 20% – 28% off the value of the retirement account and dividing that.  Or, it can be as complex as determining your effective tax rate and considering what assets will actually have to be used and tax effecting just those by the actual amount of tax you will pay this year (and possibly projecting out to the next few years).    By preparing financial projections, a CDFA can assess the amount and timing of the recipient’s anticipated withdrawals and tax liabilities from retirement accounts.

Questions About Divorce and Retirement Accounts? Let us help.  Retirement accounts are complicated, especially in divorce. Understanding tax implications and liquidity are critical in divorce negotiations.  You only have one shot to get this right.  Ensure you are receiving the settlement that’s best for you by having the right people on your team. Contact Divorce Strategies Group for a complimentary 30 minute phone consultation to discuss your specific needs.

Lets Just Live Together

By Leave a Comment

We have 5 children in our blended family and now the first of them is about to hit his 20’s and looking for Mrs. Right, I’m concerned!!! Millennials and Generation Z young adults could be the first generations of children-of-divorce. By 1983, all but 2 states had adopted no-fault divorce laws and over the next decades, the divorce rate rose to our now norm of about 50%. That resulted in many of those kids watching their parents’ divorce and suffering the emotional consequences that often accompany that. When you really consider the early years, there were few resources available to couples and families on how to go through the process in the most humane way. But let’s face it, even with the resources today, there are still plenty of ugly divorce tales out there.

So, for a lot of these kids, as they grow past their 20’s and into their 30’s, a very interesting trend is persisting. The divorce rate, the number of divorces per marriages, continues to rise but the actual number of divorces each year is dropping steadily. Why is this? Because young people are not getting married! They are choosing instead to be in serially monogamous, long-term relationships, often including children and joint home purchases, but forgoing the tradition of a recognized marriage. I understand. They don’t want to go through what their parents went through so the heck with marriage! However, the result of this when life doesn’t go as planned can be disastrous. No burden of marriage also means no protections of marriage.

Consider this: Josh and Beth have been together 4 years and decide to have children. They agree that Beth will stay home and care for the kids while Josh finishes his degree and works nights to support the family. Once he’s done and gainfully employed, the kids will be a little older and Beth will then go back to school and finish her degree.

Well, life happens, and three years into this fabulous plan, Josh is about to graduate and drops the bombshell on Beth that he’s been having an affair with a fellow student. He’s in love and just can’t go on like this. He’ll be a good dad to their children but he’s leaving her. (Didn’t see it coming, did you?) Oh, and by the way, last year they bought a home but since Beth had no income, they didn’t want her low credit score to drag down their interest rate, so the house and mortgage are in Josh’s name.

So, what’s Beth entitled to?  She’s like entitled to child support. The house was purchased by Josh and now that Josh is about to finish school and have a great job he can move on with his life in house. But they had plans! They had an agreement and she sacrificed her education to pay for his! Too bad. Had they been married, she could have been entitled to half the equity in the home, possible reimbursement for half of his education expenses and a portion of anything they acquired during the marriage. But boy, isn’t she lucky that she doesn’t have to go through a divorce? Josh kicked her out a week later and she and the kids had to move home with her parents.

Now, Texas does recognize common law marriage, but you will likely need an attorney to determine if you are married or not. What does that mean for Josh and Beth? It means Beth hires an attorney to prove they were married while Josh hires an attorney to prove they were not – after they fight about being married or not they then go on to fight over the house, the debt, the kids and anything else they own. What does that sound like? It sounds like the litigated divorce the parties set out to avoid in the beginning by not legally saying “I Do”.

This is SO REAL!! We highly encourage young people who wish to cohabitate take the time to visit an attorney to walk through the legal ramifications of this prior to moving in together. A simple Cohabitation Agreement can change many things. There are free ones available all over the internet or you can visit a family law attorney for more specific advice pertaining to your set of facts. Never move in with someone without one! It could end up saving you your entire financial life.

Divorce Settlements Gone Wrong

By Leave a Comment

John and Susan are very typical clients we see in our office regularly. They are educated. John makes a good living as an MBA who works downtown at a financial firm. Susan was a stay at home mom for a while but has a degree in marketing and has recently re-entered the work world. She currently makes a fraction of what John makes, but that is expected to grow over time. They are knowledgeable about what they own and what they owe. They, logically, assume dividing their estate will be simple. How many times have we heard; my divorce case is simple? While logically it may seem simple, it’s usually not in reality. In addition, tax issues may slant a 50/50 division into more of a 60/40 division – which can cause very hurt feelings a few months after the divorce. Their mediation in Texas could have gone very different ways.

Here is an example of a ‘simple’ divorce that proves to not be so simple and how this 50/50 division went very wrong.

hide assets in divorce

The Estate

John and Susan own the following:

Primary Home: $750,000 Value, Mortgage Balance $350,000 = Net Equity $400,000
Secondary, Vacation Home: $400,000 Value, No Mortgage
John’s 401k: $450,000
Checking & Savings: $50,000
Total Net Assets: = $1,300,000

financial audit of divorce settlement

Their Solution

Their kids are grown, and Susan determines that she cannot really afford the primary home on her own. So, John takes the primary home and Susan takes the secondary home. Susan is 53 and wants to stay close to their kids in Texas so she decides to sell the vacation home to purchase her own home. John initially decides to stay in the primary home for a few more years and then sell it down the road to downsize. This is the logical division of assets the couple decides to do:

John: Primary Home: $400,000 Net Equity
John: Half the 401k $225,000
John: Half the checking $25,000
John Total: $650,000

Susan: Secondary Home: $400,000 Net Equity
Susan: Half the 401k $ 225,000
Susan: Half the checking $25,000
Susan Total: $650,000

A perfect, 50/50 split right! No problem. This is simple. Well, it is on paper, but this 50/50 is really a 62/38 division after taxes.

The Reality

John decides he doesn’t want such a big house to upkeep, so he sells it right after the divorce is final. John sells the primary house for $760,000. He pays off the now $345,000 mortgage and pays 8.5% ($64,600) in closing costs and realtor fees for a net equity of $350,400. They purchased the house 10 years prior and put $300,000 down the home and added a pool for $50,000. His net cost basis in the home is $350,000. He has zero tax liability as he has $250,000 exemption as a single person.

Susan sells the vacation home and purchases a new residence for herself. She is only 53 so she is going to take advantage of the opportunity to withdraw funds from her spouses 401k in divorce without the extra 10% penalty, but she still owes tax on the withdrawal. She does this for a financial safety net while she re-establishes her career. Susan sells the secondary home for $405,000. She also has 8.5% in closing costs or $34,425. The property had been purchased for $170,000 and $30,000 was put into a new back patio so her basis in the home is $200,000. Susan assumes her gain of $170,575 is well under her personal exemption amount of $250,000. When tax time comes around the next year, her accountant looks at her with big eyes and breaks the bad news. The personal exemption is only applicable to a primary residence and you must live there for 2 years in order to use it. Since she didn’t, the entire $170,575 is taxable at 15% netting her $144,989. Let’s not forget, Susan doesn’t have the income that John has so she takes $100,000 of the 401k and moves it into cash and the other $125,000 she moves into an IRA for herself. The $100,000 is treated like ordinary income and taxable to her. She owes $28,000 in taxes off the 401k funds she took in cash.

This is what each party really kept in the divorce:

John: Primary Home: $350,400 Net Equity
John: Half the 401k $225,000
John: Half the checking $25,000
John Total: $600,400

Susan: Secondary Home: $144,989 Net Equity
Susan: Half the 401k $125,000 into an IRA plus $72,000 cash from the 401k, the remaining $28,000 goes to the IRS this year for taxes
Susan: Half the checking $25,000
Susan Total: $366,989

Total Tax Effected Estate: $967,389

The net effect is not a 50/50 – within one year of the divorce, given the withdrawals that were taken, they had a net tax effected estate of $967,389. John receives $600,400 or 62% while Susan receives $366,989 or 38%.

There are, typically, no do overs in the final estate division. If Susan had known what was going to happen with the primary home and the secondary home net of taxation – she may have not been so eager to agree to this in a mediation in Texas. Further, if she knew the tax ramifications of taking funds out of the 401k, she may have discussed taxation a little further before determining the 50/50 division or have asked for support of some kind to offset this taxation hit in today’s dollars. A Certified Divorce Financial Analyst could have really helped uncover these issues before a Mediated Settlement Agreement was signed in mediation in Texas or before the divorce negotiations were finalized.

employer contributions

Your Reality

If you and your spouse are entering a do it yourself divorce, we commend you on trying to hash this out cooperatively rather than in a long, drawn out battle. However, it’s important to consult with professionals before signing anything. It is wise to review your estate division with a Certified Divorce Financial Analyst who can walk through financial pitfalls, such as taxation, in your divorce settlement. At Divorce Strategies Group we understand divorce financials, we understand divorce mediation in Texas, and we can help. Call us at 281-210-0057 or schedule a strategy session today to get started!

Common Ways to Hide Assets in Divorce

By Leave a Comment

Have you ever wondered if the opposing party in a divorce case has actually disclosed all the assets of an estate?  Do you feel like your spouse might hide assets in divorce?  

Common Ways to Hide Assets in Divorce

This article covers creative ways people have hidden assets in divorce and conversely, ways we have found those assets.  We feel like the best way to talk through a divorce is with integrity and dignity without lying about assets.  Often, doing so could backfire on you.  However, if you feel your spouse is lying about money, here are a few places to look.

Excess ATM Cash Withdrawals

Excess cash withdrawals from ATM’s are fairly common.  One spouse will start taking small withdrawals on a regular basis from ATM machines.  Instead of using the cash for legitimate purposes, they stockpile it and forget to mention this as an asset when walking through the estate valuation.  They claim they have spent all the money and have no cash on hand when in reality they have a lot of cash on hand.   We often are able to track exactly how much cash was spent, on average, in normal conditions and then compare that to the months leading up to the divorce and in the divorce months.

Stealing Hard Assets

Some people will literally “hide” assets.   For example, imagine if a couple has a lot of jewelry that’s been accumulated over the years from various sources. Prior to inventorying, one party takes a few select items from the jewelry box and hopes the other party doesn’t notice anything is missing.

This can also be in the form of hiding items in safety deposit boxes whether they be straight issue bonds in coupon form, stocks in issue form.

hide assets in divorce

Another form of stealing cash is having cosmetic surgery or taking an expensive lavish trip soon before requesting the divorce.

Overpaying Debt Instruments & the IRS

One way to having a cushy safety net is by overpaying the IRS.  An unethical spouse can change their W2 withholdings if you are employed by a firm.  Doing this creates an account you know will be refunded when you do your taxes the next year and it lowers your spendable income today for purposes of child support and negotiation.   If you are self-employed your ability to overpay the IRS can be in the form of quarterly payments from company distributions or again, increasing your W2 withholdings if you pay yourself.

If a credit card is overpaid and the credit balance sits for a while, the credit card company will refund the overpayment, usually in the form of a check. The party that overpaid the credit card can then take that check and cash it. To the other party, particularly those who aren’t close to the household finances, it just looks like credit card debt was paid.

hide asset in divorce

Self-Employed Financial Games

Self-employed parties have many ways to attempt to hide income and assets in their business. Income can be hidden by increasing expenses or by paying a large expense that must be done but wasn’t budgeting for a few more years. For example, buying a huge piece of equipment you had originally planned to buy in a few years will lower your income which could lower the value of your business.

Self-employed people can overpay taxes with increases to their W2’s or increase their quarterly payments to the IRS.  Self-employed people can also delay being paid and sit on a large amount of account receivable until after the divorce.

In Texas and many other states, personal goodwill is not a community asset. Games can be played here to try to increase personal interest and personal involvement in business as to decrease the value of the business in the community estate.

If you are considering divorce, it’s important that you have the right professionals involved. A Master Analyst in Financial Forensics ® (MAFF®) and a Certified Divorce Financial Analyst® (CDFA®) has the training to help uncover shady acts like the ones listed above. And here at Divorce Strategies Group, we have both the hearts and minds to help make sure your financial outcomes in divorce leave you feeling confident. It’s all about having the right people on your team. If you are concerned your partner will hide assets in divorce or need some professional divorce help contact us today.

Mid-Life Divorce: 4 Things to Consider

By Leave a Comment

Divorce comes with financial implications at any age, but a mid-life divorce can be even more complicated.

Most middle-aged couples have a home, retirement accounts, several vehicles, and investments. You may also have debt in the form of credit card bills, car loans, a mortgage, and potentially even student loans, for yourself or your grown children.

Mid-Life Divorce: 4 Things to Consider

If your finances are complicated, it’s likely your divorce will be as well. Consider the following to lessen the impact of your mid-life divorce on your long-term financial situation.

Consider Your Monthly Income

Divorce can wreak havoc on your finances in general, but for women that have relied on their spouse’s income, the damage can be much worse. A 2017 study found that U.S. women in their 60s that went through a divorce have a poverty rate of 27%, significantly higher than any other demographic in that age range (including widows).

Take the time to inventory your monthly income and personal expenses. Consider your most basic short-term needs, including:

  • Housing costs, including utilities
  • Food
  • Personal care
  • Internet
  • Health care
  • Transportation

Above and beyond those short-term needs, you may want to determine your long-term goals.

  • Do you plan to retire at 60? At 65?
  • Will you continue to make contributions to investment or retirement accounts? If so, how much?
  • Do you intend to increase your emergency accounts?

When you have the estimate of your monthly expenses, you’ll know exactly how much income you need and will be able to negotiate spousal support accordingly.

mid-life divorce | investments

Consider Your Retirement Accounts and Assets

The division of retirement accounts and assets is a complicated one that requires special care to minimize tax implications. Private-sector retirement plans, such as a pension or 401(k) will require court approval through a Qualified Domestic Relations Order (QDRO) for the division of those assets.

If your marriage lasted ten years or more, then Social Security should be considered as well. If you remain unmarried, are age 62 or older, and your spouse is entitled to Social Security retirement or disability benefits, then you may be able to receive the greater of 50% of your spouse’s benefits or 100% of your own.  This is not something that will be discussed, usually, in the divorce proceedings, but it is a financial issue that should be addressed when planning for your life after the divorce is over.

Each situation is different, so take the time to discuss your specific needs with a financial professional.

Consider Your Home

Your home comes with memories – raising children, hosting gatherings, and more – and it can also provide a feeling of security. When it comes to mid-life divorce, many spouses allow their emotions to cloud their judgment with regard to keeping the family home. With only one income, maintenance costs, property taxes, and the house payment can quickly exhaust your financial resources, so it’s essential to weigh the costs ahead of time.  If you choose to sell, you’ll need to have a value on the spreadsheet of the house.  You can either agree on a value, use comparable house sales (comps), use tax records for the county or get an appraisal done, which is the most accurate.   When you know how much the home is worth, your divorce financial negotiations will be more accurate from the start.

Divorce and 401k

Consider Your Investments and Additional Property

Property division laws vary from state to state, so you’ll need a lawyer on your team that knows the local laws. Texas is a community property state.  Each county, and even each court, can have a different approach to how the estate is viewed in light of each family’s circumstances.    A just and right division of the estate can mean different things with different family situations and different courts.  It’s important to have an experienced family law attorney who knows your court and your judge.

Financial assets, including stocks, bonds, and cash, can often be divided straightforwardly. Complications tend to arise when stock options, real estate, vacation homes, and collectibles enter the scene and separate appraisals for each of those will likely be necessary. If you own a business, you’ll likely need to have that business valuated and it goes on the community spreadsheet as an asset.

Ideally, the goal is to eliminate joint ownership of all of the marital assets. Get independent valuations from industry professionals to ensure a fair value buyout and to lessen the likelihood of conflict between you and your ex.

Professional Assistance for Mid-Life Divorce

No matter what your financial situation, the process of divorce will impact you emotionally, socially, legally, and financially. Contact Divorce Strategies Group today, and we’ll help you clarify your options, create a plan for transitioning into the next phase of your life, and connect you with the resources you’ll need throughout the process. Protect your future – call us today.