All in Divorce Financial Plannin
Creative divorce settlements can help you maximize your income. As of midnight December 31, 2018, spousal support payments are no longer considered taxable income for any new divorce decrees. Any decrees signed prior to this date, including modifications, are grandfathered into the new tax law
Alternative dispute resolution methods such as mediation are more likely to result workable decisions that are more likely to be kept and more likely to support a doable relationship going forward.
A financial mediator brings financial knowledge, insight, and understanding to the table to guide clients through current challenges and helps to foresee potential issues in the future.
If you were still married by the last day of the year, you may want to talk to a tax professional to determine whether it is more advantageous to file “married filing separately” or “married filing jointly” – provided it wouldn’t be difficult to work with your ex.
Insist your spouse provide documents for their financial assets. Have your home and valuable possessions appraised. If you don’t know how much a spouse’s business makes, consider hiring a forensic accountant. If your spouse has a pension, it may be wise to have it valued as well.
At some point, one or both of you will leave the family home. This can be the most agonizing split because of the emotional bonds the home represents. Women often want to keep the house, perhaps to spare children from a disruptive move or because they perceive it to be the most valuable asset the couple owns. But that also means keeping the mortgage payment, home owner’s insurance, property taxes, utilities and upkeep – all on one salary instead of two.
Last week I had the opportunity to be interviewed by Christopher Hensley at KPFT on Money Matters.