financial issues in divorce © wife.org, all rights reserved

Financial Issues in Divorce

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FINANCIAL ISSUES About Me and Our Firm

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Your name, address, phone, email, firm logo – whatever you want to put about yourself here

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FINANCIAL ISSUES Getting Started

Preparing for divorce

Gather documents and copy or scan

Pay down debt

Repair property you want to keep

Buy career clothes, school clothes for kids, etc

Inventory safe deposit boxes

Getting the funds you’ll need

Save money in anticipation of divorce

Get control of your share of joint bank accounts

Obtain credit cards in your name

Control funds, don’t conceal funds© 2014, WIFE.org, All Rights Reserved© WIFE.org, All Rights Reserved

FINANCIAL ISSUES Navigating the Divorce


Separate emotions from economics

Don’t try to make him pay for what he’s done

Don’t try to “win” the divorce – it’s the two of you solving the problem of dividing things up

Take control

Take an active role, and learn about your financial situation

Don’t spend money looking for every dime – it isn’t worth it

Don’t just take whatever he offers because you feel powerless © WIFE.org, All Rights Reserved

FINANCIAL ISSUES Determining Support


Support is based in part on your relative incomes

How to determine income from a business

How a spouse’s ability to earn factors into support

Taxability of support

Child support isn’t taxable when you receive it, alimony is

Claiming your children for tax purposes, or using Form 8332 to relinquish exemption for child

Protect your support with life insurance

How much life insurance you need

Who pays the premiums

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FINANCIAL ISSUES Dealing with the Family Home


Buyout by one spouse and transfer of title isn’t taxable

When you sell you won’t pay tax on first $250,000 of gain

If sold while in both names, each spouse can exclude $250,000 of gain if the resident spouse is given exclusive use of the property during period before sale

Can you really afford to keep the home?

What assets will you give up in order to do so, and what will your future be like without those assets?© WIFE.org, All Rights Reserved

FINANCIAL ISSUES Retirement Plans

Social security for divorced spouses

Divorced spouse benefits available if greater than your own benefits and married 10 years

Government pension offset of divorced spouse benefits

Effects of remarriage

Death of former spouse

Dividing retirement plans

Using a QDRO to divide qualified plans

IRAs often don’t require a QDRO

Federal plans require special documents

No need to divide if each keeps their own plans

Military retirement & benefits

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FINANCIAL ISSUES Other Assets and Debts

Division of property isn’t taxable

How businesses are valued

How to value your “stuff” – vehicles, furniture, jewelry, collections

Miscellaneous property – frequent flyer points, accumulated vacation and sick pay

How to deal with joint credit cards


FINANCIAL ISSUES Other Issues in Divorce

Separate property – how to trace

Reimbursements in divorce

Indemnification clauses to protect you from future tax issues


FINANCIAL ISSUES Deciding What Is Best for You

The benefits and drawbacks of trading retirement funds for the home

Creating a budget – your former lifestyle vs. your current reality

Consider your future needs as well as your current needs and how to balance them

Career issues – how can you enhance your earning potential for your future?


FINANCIAL ISSUES Moving On After Divorce

How to get your financial life in order after your divorce is final

Creating new goals and objectives for your future

Estate planning as a single person

The importance of getting good professional advice


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