Divorce takes time, and in some ways we shouldn’t push it along too fast. Ideally the divorcing couple should engage in thoughtful discussion around such topics as the parenting plan, how to divide assets or who stays in the house. But there are some aspects of the process that can be time-consuming or just take an extended period to accomplish and it would help to get these going as early as possible.
Read MoreIn 2018 a new tax credit was conceived, the Retirement Savings Contribution Credit, or “Saver’s Credit.” To help lower-income individuals save for retirement (and take some of the burden off the government), this credit was created as an incentive. Here is how it works.
Read MoreIn the best of times credit cards serve a valuable purpose. But as we know, they are prone to overuse, and the consequences of such may be deep financial difficulties. This is of particular concern with a divorcing couple as it is common that credit cards are issued in both names. The use of joint credit cards should be addressed at the beginning of the divorce process.
Read MoreOne of the most popular forms of saving for college is the 529 Plan. Named after its section of the IRS code, the plan is a way for parents to squirrel away money for their children’s educations on a tax-deferred basis. If the money is spent on a qualified college education expense, then withdrawals are tax-free (if withdrawn for any other purpose the owner is subject to income tax and a 6% penalty). These accounts have become even more popular in the past few years, since the 2018 Tax Cuts and Jobs Act extended the definition of a “qualified educational expense” to include $10,000 per year of tuition for grades K-12.
Read MoreYour new divorce client needs help. She’s ceded control of the family finances to her husband for 32 years and knows nothing about what’s going on. She has no idea what she spends or what she is going to need and wouldn’t know where to put her fingers on their investment statements.
Read MoreWhen a client engages us for help with their divorce, the first thing we do is give the client an extensive list of financial information to provide. This includes items that might not typically be requested such as reward points, accumulated vacation time, seasons tickets and prepaid burial plots.
Read MoreThe process of getting divorced is often long and arduous. In our experience the worst part of the negotiations (usually the alimony discussion) is often left to the end. Once that is hammered out and the agreements are signed everyone is mentally and physically exhausted and ready for a break. The professionals (attorneys, mediators, financial planners) are used to the process and will quickly move on to another case. But the parties have been through a unique and challenging experience. They leave the room a little shell-shocked!
Read MoreLife turned upside down for many in March when COVID 19 hit us. Most of us were sent home to figure out quickly how to do our job remotely.
Read MoreDivorcing couples sometimes wish to hold onto the family home for at least some period of time. The most common reasons are to keep continuity in the childrens’ lives or to wait for further appreciation before selling. Tax laws give them some special opportunities to avoid taxes on the eventual sale.
Read MoreIn January 2019 the tax rules around alimony were changed, such that these payments are no longer tax-deductible to the payor and are not taxable to the payee.
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