Connecting with the right attorney is critical in divorce. But if you have accumulated a significant asset portfolio during your soon-to-be dissolved marriage, hiring a third party financial expert can be just as important. A Certified Divorce Financial Analyst (CDFA) can help you negotiate your financial position and save money in the process. Read More
With the exception of child custody, the distribution of marital property is arguably the most important aspect of a divorce agreement. When considering division of assets, remember that what looks equitable on the surface may not be. One major reason is tax liability.
Typically, any transfer of marital property to one spouse that occurs as a result of a divorce settlement is not taxable at the time of transfer. However, any taxes due after the sale of assets or income earned from investments after the divorce will be paid solely by the spouse who was awarded the asset.
Let’s take a look at two areas of tax liability that come into play: income taxes and capital gains taxes. Read More
Divorce consumes every aspect of your life: emotional, familial, social, spiritual, legal, and financial. It generates emotions that are often conflicting and intense. In divorce, expect upheaval in virtually every area of your life.
That’s why one of the best things you can do to keep your emotions from overwhelming the situation is to maintain focus on the financial challenges the divorce process presents. The decisions you make today will set your financial tone well into the future. That’s why in addition to qualified legal counsel, it’s critical you seek qualified financial counsel: a Certified Divorce Financial Analyst. Read More
When you’re going through a divorce, you may be dividing a variety of different assets. Each will need to be properly valued to come to a final settlement. Specific assets may be valued differently. Here’s some information on the valuing of specific assets during divorce.
Valuing the Home in Divorce
If you or your spouse do not wish to sell the home and are negotiating an agreement out of court, you can use whatever value determination you both agree is fair. This can be fair market value, original purchase price, or the amount it would take to pay off the mortgage. In court, the judge will likely use current real estate appraisals of the property to determine value. A real estate appraiser will be used as the expert to determine the value, and each party can hire their own appraiser if they wish. Because there are various approaches that appraisers might use to determine value, you’ll want to have an appraiser on your side if you’re arguing your case before a judge. Read More
A business is treated like any other asset during a divorce. That means that the rules related to community property apply. It also means that you may have the right to a portion of the profits from the business as part of the divorce settlement, even if you haven’t played a role in the creation or running of the business. There are also ways in which you might be entitled to the profits of a business that was started or acquired prior to the marriage. Read More