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Divorce Planning: The Top 5 Things to Know About Your Properties Before Getting Divorced

January 24, 2012 By Leave a Comment



Top 5 Property Division Factors to Consider

When it comes to divorce and property division, one of the biggest mistakes people make is entering into negotiations without first accurately assessing current property assets.  Successful divorce planning begins with careful research.  If you are in the process of getting divorced, it is important that you protect yourself by understanding the particulars of your individual situation.

Not all property is created equal, so you will need to look into the details that apply to the property you and your spouse own.

As a starting point, consider the following five factors during your divorce property division:

  1. Identify the type of real estate you own and the basis of each property.

    2. Do you own a personal residence, land, investment or commercial properties or some combination of these? And what is the basis – the original price paid for the property, plus major improvements (NOT ordinary repairs and maintenance) plus selling costs (commissions, closing costs, etc.).

  2. Determine the ownership history for each piece of property.

    3. Is each piece of real estate marital or separate or some combination of both?   How is the title held now – jointly or in only one name?

  3. Establish how long you have held the property.

    4. This is an important question to know to determine if there are any capital gains tax issues.

  4. Research what debts, such as loans and tax liens, the property might have.

    5. Most everyone thinks of the mortgage and possibly a second mortgage, but there could be other debts against the property you may have forgotten or possibly some of which you were never aware.

  5. Calculate the income you will need to pay for and maintain the real estate property during the divorce and afterward.

    6. Be sure to take both major repairs and ongoing costs to properly maintain the property into consideration.

By engaging in careful divorce planning with the help of an expert in divorce and property division, such as a Certified Divorce Financial Analyst, you can avoid some of the common financial pitfalls of getting divorced.



Filed Under: challenges, Dividing assets, Divorce Settlement, Real Estate Tagged With: , , , , , ,

Getting Divorced? How Getting the Best Divorce Help Starts With Taking Control

January 17, 2012 By Leave a Comment



divorce helpDivorce Help Starts With Taking Control

If you are  ending your marriage, chances are you don’t know where to turn for divorce help.  Before you look elsewhere, remember that the most important source of divorce help can be found right in the mirror.  Remaining empowered and not allowing yourself to become a victim in the process – no matter how difficult – starts with taking control.

The first thing you must do is take time to educate yourself about divorce.

Divorce help is out there, but you have to know how to assess each professional’s ability to get the job done.

Be sure to interview the experts you want to have on your divorce team.  When getting divorced, you want to have quality mediators, attorneys, therapists, and financial advisers involved in the process.

Whatever you do, do not base your choices solely on recommendations from your best friends, neighbors, or relatives.  While often well-intentioned, be weary of anyone who is not an expert in the battle you are facing. They can sometimes make things worse… much worse!

Do your own divorce help research independently, and do not fall into the trap of feeling obligated to work with anyone just because you have a personal connection.  This is too important.

As you face divorce, help with the financial matters can make a world of difference in your ability to successfully navigate the process without losing your shirt.  Seek to work with someone who has experience and training specifically in divorce matters, such as a Certified Divorce Financial Analyst (CDFA).

And, of course, find a divorce attorney who will be your best ally.  Remember that while a good divorce attorney is likely to be a busy divorce attorney, you should not settle for working with someone who doesn’t have time to give you proper attention.  Many attorneys are in overload with more to do than they have time for and are notoriously known for not responding timely to phone calls and emails. Be sure to have a conversation about expectations from the start.

Learn as much as you can about the process and remain vigilant about who you bring onto your team.  Finding qualified divorce help will serve your best interests when getting divorced.



Filed Under: Blog, CDFA, Communication, Dividing assets, Divorce Settlement Tagged With: , , , ,

Divorce Planning: The Top 5 Types of Documents To Have Before Contacting Your Attorney

January 3, 2012 By Leave a Comment



divorce planning checklistMany people find one of the most difficult aspects of divorce planning is the seemingly never ending requests for financial information and legal documentation.

If you are divorce planning, you need a solid defense against drowning in a sea of paperwork.

Start by gathering every possible financial statement or document pertaining to you and your spouse’s financial life, whether held individually or jointly.  And before you contact an attorney or a Certified Divorce Financial Analyst (CDFA), arm yourself with an organized set of documents.

Divorce Planning:  The Top 5 Types of Documents To Have Before Contacting Your Attorney

Divorce Planning - Assets

Gather all information on your bank, investment, and retirement statements, as well as your life insurance policies and any cash surrender value.   Secure real estate property records, including your primary residence, second home, rental and commercial properties, time-shares and land.  For your vehicles, determine the make, model, year, mileage, features and overall condition to get an estimate of value.

Meticulously document other assets such as jewelry, artwork, and collectibles, and don’t forget potentially valuable intangibles, such as season tickets and frequent flier miles.  If you own a business, you may need a business valuation expert.

Divorce Planning – Liabilities

You will need to obtain copies of any notes payable or mortgage documents.  All debt documentation should include information on the creditors, balances owed initially and currently, interest rates, and credit limits.

Divorce Planning - Taxes

When obtaining divorce planning services, you should be prepared to submit three to five years of tax returns, W-2s, current pay stubs, including commission and bonus payments, real estate property tax information, and personal property tax information.

Divorce Planning - Insurance

Look for both personal and work policies.  If you are in the process divorce planning, never remove your spouse from your insurance policies until after your divorce is final or without the consent of your attorney.  Speak with your attorney and insurance agent for each policy regarding re-titling of your insurance accounts and possibly changes of beneficiaries for life insurance policies.

Other Divorce Planning Documents

Take the time to make a list of additional documents you might need to access during the divorce. Planning ahead, you will be able to retrieve wills, passports, birth certificates, credit reports, and other critical documents.

Gathering all of the documents and information you need when preparing to get a divorce can be a tedious process, but divorce planning is something that has to be done with care.  Hastily gathering information as you need it will lead to wasted time, mounting frustration and more money needlessly spent.  Remaining organized and systematized is one thing you can truly control to save you time, money, and your sanity in the process of divorce planning.



Filed Under: Blog, CDFA, Dividing assets, Divorce Settlement Tagged With: , , , ,

What to Do with the 529 College Savings Accounts in Divorce?

December 7, 2011 By Leave a Comment



529 College Savings Account

Thank you to my fellow CDFA, Kevin Worthley, from the Retirement Planning Company of New England, for this informative guest blog post below on 529 College Savings Accounts and some smart tips on dealing with them in divorce.  You can reach Kevin directly at Kevin(a)RetirementPlanningCo.com

What to Do with the 529 College Savings

Accounts in Divorce?

By Kevin Worthley, CFP, CDFA

With the emotional difficulty and new household arrangements, asset division is a major part of the divorce process and that can include a 529 College Savings Account.  The family house, other real estate, the family business and retirement/money accounts are all common assets that come into the settlement discussion or negotiations.

The so-called “Section 529” College Savings Account, similar in some ways to old ‘custodial trust’ accounts, is somewhat unusual in that only one person may be the owner or “Participant” of an account, (the child is usually the “beneficiary”).  The Participant retains full control and discretion over the account, its investments and, importantly in the case of divorce, technical ownership and the disposition of the money.

529 College Savings Account and Taxes

The implications of this are very important to the divorce settlement discussion.  First, whoever is the Participant legally owns the 529 College Savings Account, even though the contributions made to the account by gift, (including those by relatives, friends, etc) were intended for the beneficiary’s (student’s) college education.  Second, the Participant may empty the account and use the money for purposes other than the intended student’s college expenses, should the Participant so choose.  (Unlike custodial accounts, 529 College Savings Account do not become the property of the beneficiary at their age of majority (18 or 21)). Of course, there are IRS-imposed penalties and taxes for using the money for non-college reasons (10% penalty and Federal/State income taxes owed by the Participant on the appreciation (only) of the withdrawn money), but that aside, the Participant can do whatever he/she wishes with the account, including changing the beneficiary to another person.  The beneficiary, the contributors and even the Successor Participant have no say in the matter.

With these powers over the account and considering most 529 College Savings Account were created during the marriage (and therefore are usually considered marital assets) and are generally for the benefit of the children of the marriage, how the 529 account(s) are handled during the divorce settlement process can be tricky.  Depending upon whether the divorce is contentious or if there is a lack of trust between the parents, safeguards may need to be imposed on these accounts post-divorce to ensure the 529 account money goes toward the intended purpose; college expenses for the children.

How to Resolve the underlying issues of the 529 College Savings Account in Divorce?

To resolve this potential issue, parents (and their financial advisors or attorneys) should know that 529 College Savings Account can be split and divided between divorcing parents, where each parent would become the Participant of their respective account, and the one child-student can be the beneficiary of both accounts.  This is not considered a non-qualified ‘taxable event’ (will not incur taxes or penalties), since no actual distribution of account assets took place.  The change in “ownership” is similar to a change in named beneficiary.    Even though the account assets are actually intended for the child, splitting the 529 accounts in this manner may help with settlement negotiations.

Other divorce safe-guards that may be used to ensure the college money actually goes toward college expenses:

  1. The divorce decree could stipulate the non-Participant parent of each account be named as the Successor Participant.  Therefore, if the Participant-parent dies unexpectedly, the Successor-Participant parent immediately assumes ownership and control of the account rather than another non-parent person.
  2. Most investment account custodians have authorization forms that allow an “interested third-party” to receive regular statements and all notifications of changes to investments, sales, purchases and distributions from the account.  The divorce decree could stipulate that Participant parent of the 529 account agree to approve such authorization for the non-Participant parent.  This way, the parent who is not the owner of the account is still fully aware of all account activity, especially of non-qualified withdrawals or ‘draining the account’.  This is not an iron-clad prevention of such an event, but at least the non-Participant parent would know soon after that a withdrawal had occurred and can take steps to prevent further withdrawals or other action to recover the money for their child.
  3. The divorce decree might further stipulate agreement on the part of both parents that the 529 money be used solely for college costs.  Again, this may not actually prevent abuse of the account by the Participant-parent, but there may be a legal basis and liability for that parent to come up with the money needed for college that was taken improperly from the 529 account.

All of these points contain legal aspects, by the way, so be sure to consult qualified legal professionals as to how the laws in your state apply to these suggestions.  If you’re not sure how your college accounts should be handled in divorce, consult with a knowledgeable professional for your particular situation.

Kevin Worthley is a Certified Financial Planner® practitioner, a Certified Divorce Financial Analyst™ and an investment advisor representative of the Retirement Planning Company of New England, a Registered Investment Advisor, 1287 Post Road, Warwick, RI 02888.  He is also a registered representative of, with securities offered thru, Ridgeway and Conger, Inc.  Member FINRA/SIPC.  Office of supervisory control: 2123 Main St. New Woodstock, NY 13122, 315-662-7450.  RPC and Ridgeway & Conger are not affiliated.  Contact Kevin with questions at (800) 585-8696.  529 College Savings Account

divorce



Filed Under: Blog, CDFA, Children, College Planning, Dividing assets, Divorce Settlement, Parenting Tagged With: , , , , ,

Great Giveaways Event for Parents, Caregivers and Kids of Divorce

October 20, 2011 By Leave a Comment



I’m touching base with a quick update on what’s happening with the “Great Giveaways Event for Parents, Caregivers and Kids of Divorce!”

Our Giveaway Event is just about ready to launch and we can’t wait to share all the great gifts we’ve got waiting for you! We’ve got over 15 fabulous experts giving away over $20,000 in free gifts! You can glimpse a peak at all the contributors we’ve added at the bottom of this page Great Giveaways Event!

Here’s a few of our Great Givers:

  • Dr. Deborah Hecker, www.drdeborahhecker.com, is giving away unlimited downloads of her article – Divorce and Your Emotional Needs:  What You Should Know to Survive Your Divorce. This information will help you answer questions like, “Now what,” and “Who am I without my partner?” and will give you useful insights into the psychology of separation and how to begin helping yourself to survive the journey.”  In addition, she is drawing winners for 10 mini and 2 full 50 minute consults!  Total value more than $1,400.00!
  • Jennifer J. Moheyer, “The Heart-Centered Lawyer,” is giving away something very special – EMERGENCY legal documents that EVERY divorcing parent NEEDS!  Everyone can get a $200 Emergency Guardianship document FOR FREE!! You should know that as a parent, if you are ever injured, on travel, arrested or “CUSTODIALLY UNAVAILABLE”, the law often demands your children wait in protective custody, UNLESS they have this $200.00 legal document in-hand when the authorities arrive!  Total value for peace of mind – Priceless!   PLUS: 10 winners will get 3 FREE months in the “Live Coaching Support Group” at www.DivorceSupport.org.    Total value more than $1,447.00!
  • ShaRon Rea, Certified Parent Coach and Mentor at www.thewholefamily.biz is contributing unlimited copies of her Parent Guide – “A Child’s Reaction to Divorce.  Why is my child acting this way and what can I do to help them?” This MUST HAVE guide is for children of divorce in every age and stage of development.  In addition, ShaRon will have a drawing for (3) Personal mentoring sessions and creation of your own personal Declaration for a Bright Future for 3 lucky people!   Over $1,000.00 in value!

There’s still time to join in the Giveaways Event as a Contributor, Sponsor, or Promotional Partner. If you would like more information please contact our team at Support@DivorceMoneyMatters.com.

My team is working on putting all the final processes in place and we should be ready very soon to open up the gates to the Giveaways!

Until then…

Wishing you generosity and abundance,



Filed Under: Blog Tagged With: , , , , ,

Back to School Tips for Co-Parents

August 18, 2011 By Leave a Comment



Back to School Tips for Co-Parents

Thought you might like these helpful tips from my affiliate partners at Our Family Wizard.

The new school year is quickly approaching and its time to start preparing. If you and your co-parent both take part in the upbringing of your child than this can be a challenging task. Preparing your child for a new school year requires a lot of coordination and cooperation between you and your co-parent. This is an important time for your child to feel support from both you and your co-parent and to know that you both care. Here are some tips to remember to make going back to school as smooth as possible for you and your child.

Keep everyone on the same page

Some co-parents have implemented the use of weekly or monthly family meetings to keep everyone updated on what’s going on in everyone’s lives. This is a good way for children to get to talk to both you and your co-parent in the same room but it is more useful to keep both you and your co-parent updated on your child’s life.

Simple responsibilities, such as remembering to bring your son’s soccer cleats for his after school game, can become a daunting task if communication with the other parent is poor. Communication hurdles can be difficult to overcome for parents with a good relationship, and separated co-parenting can become an even more challenging environment.

For family law professionals, the OurFamilyWizard website can provide an in-depth look into the parents’ communications. This newly found accountability is giving parents a reason to get along with the other parent, because action and inaction are both documented. The end result is parents who communicate, children who are kept out of the middle and professionals who can spend their time more effectively helping the clients they serve.

Shopping is a job for both co-parents

It is extremely important to coordinate the back to school shopping with your co-parent. This is a big job and should not all be dumped on either one co-parent. Back to school shopping includes shopping for school supplies as well as clothes. If you and your co-parent are in a high conflict relationship try to remember to not sweat the small stuff. If you don’t agree on your co-parent’s choice of clothing or school supplies try to compromise as best you can.

Don’t bring up child support issues

Child support is a touchy subject and should generally not be discussed around your child. The beginning of a new school year is a time where kids show off all of their new stuff to their friends. This desire for the latest and greatest things can put a strain on your wallet. It’s important not to blame your inability to buy the most expensive things for you child on your child support payments or lack of child support. Do all that you can to avoid talking bad about your co-parent in front of your child.

Help your child with their daily schoolwork and projects

Regardless of whether or not your child is a fast or slow learner, when your child is residing at your home you should be sitting down with them as they work on their schoolwork. The same goes for your co-parent as well. The most important thing is to just be there for your child so that they can call on your whenever they need you. This will show them that you’re there to support them in whatever they are doing, not just schoolwork. Also try to coordinate with your co-parent regarding your child’s schoolwork. Let your co-parent know about important due dates and if your child did not complete something before it was time to switch between homes.

Attend important school events with your co-parent

This may not always be possible if you and your co-parent are in a high conflict relationship or if you have a no contact order by the court. If it is possible, it’s much more effective when you and your co-parent are both able to sit down at school orientation, parent-teacher conference, or any other important event on behalf or your child. This is much better than one co-parent attending and relaying the information to the other co-parent.

Keep the focus on your child

Don’t get caught up in unnecessary competition or arguments with your co-parent. It’s important to keep the focus on your child during this time and to let your child know that both you and your co-parent are there for comfort and support. Be as civil as possible given the situation between you and your co-parent.

Have a backpack for the parents

Having a separate backpack for the parents to transmit items and forms is a great way to keep the kid out of the middle.  This way it is the parent’s responsibility to make sure the bag makes it to the other parent, taking the pressure off of the kids.  Additionally, this takes possible inappropriate items from being seen by the kids.




Filed Under: Blog, challenges, Children, Co-Parenting, Communication, Parenting, School Tagged With: , , , , , ,

Real Estate – How to Value Your Largest Asset

May 24, 2011 By Leave a Comment



A lot of my clients have been asking questions about appraisals and how they relate to determining the value of their home and other properties. To get more information I reached out to Real Estate Appraiser, Mike Congemi, of Appraisal Workx.

Here is what he shared:

Divorce can be a very emotional and challenging time. You are forced with many decisions that will shape and affect the rest of your life. Frequently a house owned by both spouses needs to be sold so that one or both spouses can liquidate their share. In this dynamic time in the real market how do you maximize the value of your house?

The first step might be to engage a certified appraiser. Remember that an appraisal is a confidential document and the appraiser can only share information in it with the client who engaged him, unless subpoenaed in court or review by state regulatory authority. A certified appraiser is bound by ethics standards to render opinions of value that are unbiased based on examining the market and finding comparable properties and making adjustments in differences to your house referred to as the subject. A certified appraiser is the top residential license level and is obtained after extensive coursework and 2500 logged hours of field work. In addition the certified appraiser must pass a national test and keep updated with yearly continuing education. A certified appraiser is licensed to appraise any residential property.

The second step is to decide on what type of appraisal is required. There are three types of appraisals. They vary based on depth on which information is gathered and fees are adjusted accordingly. The first type is known as full appraisal; this is a summary appraisal and is the most common. With the full appraisal the appraiser comes out to your house (also referred to as the subject) measures exterior and walks through the inside to note features and attributes. The appraiser then does research for comparable properties nearby, then takes pictures of the comparables and observes them from the street. Finally the appraiser gathers this information and puts it together in a report and submits it to the party who engaged him.

The second type of appraisal is referred to as a “Drive By” or Exterior appraisal. Essentially the appraiser performs the same research as the full appraisal. The appraiser determines square footage of the subject from reliable data sources. The appraiser will photograph the exterior of the subject and comparables. The appraiser will interview the client to determine features and attributes of the subject. After these steps are complete, the appraiser will compile the information in a report and submit it to the client.

The third type of appraisal is referred to as a “Desktop Appraisal”. This appraisal is also a restricted use appraisal like the “Drive By” except the appraiser does not visit the subject or the comparables, but basis his opinion of value on interview with the owner and research from reliable data sources.

I have briefly described the types of appraisal to value your house. Hopefully I have enlightened you and expanded your knowledge in this area to help you make an informed decision at a time when you whole world is changing. The full appraisal is a complete summary appraisal and is the most thorough appraisal product. There may be various reasons you choose one of the restricted use products, for example budgetary, unable to gain access to the subject property, or some other reason. You still have the option to engage an appraisal professional to value your largest asset in unbiased matter.

Michael Congemi is the principal of Appraisal Workx, LLC and a certified residential appraiser licensed in Georgia and Missouri. His firm covers Atlanta, GA metro area and the St. Louis, Mo metro area. Michael is also an Associate member of the Appraisal Institute.and can be reached at www.appraisalworkx.com, or by phone at 770-331-8066.



Filed Under: Blog, Real Estate Tagged With: , , , , , , ,

Mothers and Others on “Mothering”

May 9, 2011 By Leave a Comment



I had a lovely Mother’s Day toiling about in my backyard. Clearing brush and cleaning up the aftermath of a rough winter by metro Atlanta standards may not sound like fun to some, but I loved every minute of it. Since this is a rare treat for me, I probably enjoyed it so much because I don’t have to do this kind of back breaking work all the time.

As I worked I listened to the neighbor children playing make believe games. It reminded me that this was the first Mother’s Day I’ve ever had where all of my children were gone for the day. My youngest, Hayley, just got her first job and was working today, along with her sisters.

As I raked leaves I thought about “mothering” and what really makes someone a mother. I don’t believe mothering only comes from giving birth, but rather it is a state of being when one person shows kindness toward and concern for another.

I’ve mothered many children that weren’t my own over the years, usually teenagers who needed extra mothering to get through those difficult teen times. I was happy that I was there when they really needed it. Mothering in this sense can be temporary and short, but can make such a difference in the path that someone’s life takes.

So for this Mother’s Day, I would like to thank mothers and others who have loved, nurtured, and cared for someone or something in their lifetime.

Mothers who bring children into this world and give them all the love a child needs,

Mothers who foster children who need more than their real mother can give,

Mothers who love and want more for their child so they give them up to another,

Mothers who choose to adopt and raise the child of another mother,

Mothers who bravely raise kids on their own when there is no one else to turn to,

Mothers who simply nurture those who need some extra mothering,

Mothers who mother those who have no other mother.

Fortunately for me my girls, Michelle, Brittany, and Hayley, were able to get home or come by after work. Then they made me alovely dinner with Dad’s help (and cleaned it up too!). I enjoyed every minute of just being a mother and…not doing dinner!

I hope you had a lovely Mother’s Day wherever or whoever you spent it with.



Filed Under: Blog, Children

Guidelines for Divorced Parents in Getting College Financial Aid

April 13, 2011 By Leave a Comment



A big thanks to Amy Kelly over at www.ParenteSource.com for asking me to contribute a guest blog post about Guidelines for a Divorced Parent in Getting Financial Aid.

I dug deep into my private teleseminar library to pull out snippets from a past teleHow does divorce affect college financial aid?seminar interview I did with Kevin Worthley, a CFP and fellow CDFA from Rhode Island, who has a lot of specialized knowledge on these matters. Click here to read the a condensed snippets from my interview with Kevin that shed some light on this very complex matter.

I hope my readers find the information helpful as well!



Filed Under: Blog

Divorce Money Matters Evolution – New Site, New Look, New Offers…oh my!

March 31, 2011 By Leave a Comment



It has begun…the shift to becoming more of who I really am.  The first steps in my personal evolution are changing the look and feel of my website to be a more authentic reflection of the true me.  It’s taken months of planning and revisions (thank you to my wonderful and patient team members!) and I am so happy to say, it’s finally done!

And even more exciting are the new FREE gifts I have created for you, my wonderful readers.  So many of you have reached out to me over time and asked for help with issues you are struggling with – pre-divorce questions, mid-divorce concerns and after-divorce guidance.  Thank you for your trust in me.

I’ve been listening and working on many new offerings to help guide you before, during and after your divorce – starting with my new FREE Fast 5 Divorce Prep and Planning Kit! Know that this is just the beginning of so much more to come.  I’ll be sharing LOTS more information over the coming weeks…so check back often, or better yet, add my site to your RSS feed so you get automatic updates!

I’d love to know what you think about all the exciting happenings going on around here so please leave a comment below if you care to share!  Speaking of sharing please be a friend and let someone who may be in need know about all the free resources here…they’ll thank you for it!

~ Lisa ~



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