--- title: Our Blog - AMF Divorce | Amy Mahlen (7) description: From mortgage professionals to therapists to attorneys, the team at A.M. Financial works closely with these types of professionals. (7) --- ## A.M. Financial - [Services](https://amf-divorce.com/divorce-transition-services) - [Service Plan](https://amf-divorce.com/service-plan) - [Frequently Asked Questions](https://amf-divorce.com/frequently-asked-questions) - [Our Blog](https://amf-divorce.com/our-blog) - [About Amy](https://amf-divorce.com/about-amy) - [Contact Us](https://amf-divorce.com/contact-us) - [Services](https://amf-divorce.com/divorce-transition-services) - [Services](https://amf-divorce.com/divorce-transition-services) - [Service Plan](https://amf-divorce.com/service-plan) - [Frequently Asked Questions](https://amf-divorce.com/frequently-asked-questions) - [Our Blog](https://amf-divorce.com/our-blog) - [About Amy](https://amf-divorce.com/about-amy) - [Contact Us](https://amf-divorce.com/contact-us) [Book a Meeting](https://calendly.com/amymahlenmelander/consultdivorcefinancialplanning) # Amy Mahlen ## [New Year and Newly Divorced: Don't Put Off Next Steps](https://amf-divorce.com/our-blog/new-year-and-newly-divorce-dont-put-off-next-steps) February 08, 2023 If you were divorced last year and since that time, you’ve been distracted with the holidays, celebrating your new sense of freedom, or even contemplating new year’s resolutions in your... [CONTINUE READING](https://amf-divorce.com/our-blog/new-year-and-newly-divorce-dont-put-off-next-steps) ## [Financial Self-Care: Prioritizing Your Financial Needs](https://amf-divorce.com/our-blog/financial-self-care) February 02, 2023 Over the last decade, you’ve likely heard more about the importance of self-care or ways you can proactively take care of yourself to reduce stress and burnout. Because finances and money can be a... [CONTINUE READING](https://amf-divorce.com/our-blog/financial-self-care) ## [Playing Your Cards Right: Divorcees Who Pay 0% Capital Gains Tax](https://amf-divorce.com/our-blog/capital-gains-tax-mahlen-financial) February 02, 2023 If you are recently divorced, you may be experiencing a lot of ‘firsts’. For example, you may have to [do your own taxes for the first time](https://mahlenfinancial.com/post-divorce-financial-to-do-list/) and feel like a deer in headlights, frozen and overwhelmed... [CONTINUE READING](https://amf-divorce.com/our-blog/capital-gains-tax-mahlen-financial) ## [Divorce: A Catalyst for Change](https://amf-divorce.com/our-blog/divorce-a-catalyst-for-change) January 13, 2023 Any major life event, including divorce, can be a catalyst for overall life changes. By recognizing and accepting that any big life change will result in many other significant changes, you’ll... [CONTINUE READING](https://amf-divorce.com/our-blog/divorce-a-catalyst-for-change) ## [Options to Handle Rental Properties in a Divorce](https://amf-divorce.com/our-blog/rental-properties-mahlen-financial) January 10, 2023 While there is so much to sort through in a divorce, splitting up rental properties can add additional complexity to your separation. You do have several options for handling rental assets, and the... [CONTINUE READING](https://amf-divorce.com/our-blog/rental-properties-mahlen-financial) ## [Divorce Season: Key Tasks for Success](https://amf-divorce.com/our-blog/divorce-season-key-tasks-for-success) January 04, 2023 Divorce season is upon us. January is the most common time for divorces throughout the year, for various reasons. Many couples are trying to get through the holidays for their families, or are... [CONTINUE READING](https://amf-divorce.com/our-blog/divorce-season-key-tasks-for-success) ## [Separate vs. Marital Property: Understanding the division of assets in your divorce](https://amf-divorce.com/our-blog/separate-vs-marital-property) January 03, 2023 Getting a divorce means learning a whole new vocabulary of legal and financial terms. Therefore, having a team of experts to talk you through new concepts and what to consider as you make important... [CONTINUE READING](https://amf-divorce.com/our-blog/separate-vs-marital-property) ## [Stay at Home Moms: Learning to Budget Post-Divorce](https://amf-divorce.com/our-blog/stay-at-home-moms-learning-to-budget-post-divorce) June 01, 2022 In my work supporting divorced individuals in the Colorado area along their financial journey, I see one particular group of clients who struggle more than others. Long-time stay-at-home mothers... [CONTINUE READING](https://amf-divorce.com/our-blog/stay-at-home-moms-learning-to-budget-post-divorce) ## [Preparing for Mediation in your Divorce](https://amf-divorce.com/our-blog/mediation-in-your-divorce) June 01, 2022 Many divorcing parties believe their case will [go to court](https://mahlenfinancial.com/3-myths-about-going-to-court-in-a-divorce/) because there is so much friction and disagreement about the path forward. The media also portrays divorce this way. In reality, it’s much... [CONTINUE READING](https://amf-divorce.com/our-blog/mediation-in-your-divorce) ## [Retirement Savings Plans in 2023: What to Expect](https://amf-divorce.com/our-blog/retirement-savings-plans-in-2023-what-to-expect) June 01, 2022 You may have heard about the big changes coming to retirement plans and savings options in 2023. Both changes, made by the IRS, benefit employees or those saving for retirement. These changes were... [CONTINUE READING](https://amf-divorce.com/our-blog/retirement-savings-plans-in-2023-what-to-expect) - - [5](https://amf-divorce.com/our-blog/author/amy-mahlen/page/5) - [6](https://amf-divorce.com/our-blog/author/amy-mahlen/page/6) - [7](https://amf-divorce.com/our-blog/author/amy-mahlen/page/7) - [8](https://amf-divorce.com/our-blog/author/amy-mahlen/page/8) - [9](https://amf-divorce.com/our-blog/author/amy-mahlen/page/9) - ##### About Amy With compassion and patience, Amy focuses on her client’s unique priorities to build a financial road map that provides clarity to make informed decisions today regarding the future. ##### Links - [Home](https://amf-divorce.com) - [Services](https://amf-divorce.com/divorce-transition-services) - [Our Blog](https://amf-divorce.com/our-blog) - [About Amy](https://amf-divorce.com/about-amy) - [Contact Us](https://amf-divorce.com/contact-us) - [Schedule a Meeting](https://calendly.com/amymahlenmelander) ©2026 Copyright. All rights reserved. A.M. Financial provides supporting financial information, evaluation and analysis to be utilized by the client and the client’s selected attorney if directed, during the process of their divorce. ervices provided in regards to this agreement are solely fee-only and do not involve investment or security advice or insurance transactions. All information is financial in nature and should not be construed or relied upon as legal or tax advice. A.M. Financial IS NOT AN ATTORNEY AND DOES NOT PROVIDE LEGAL OR TAX ADVICE. Individuals are encouraged to seek competent legal and tax advice from professionals who specialize in divorce and tax laws in their respective state. Amy Melander (CRD #4692263) is an Investment Adviser Representative of OneDigital Investment Advisors, LLC (ODIA). ODIA and A.M. Financial are independent and unaffiliated entities. ODIA does not offer or provide divorce financial planning services and any statements and/or opinions expressed by A.M. Financial do not represent the views and/or opinions of ODIA.   This website is a publication of A.M. Financial. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. Content should not be viewed as personalized investment advice or as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. A professional adviser should be consulted before implementing any of the strategies presented. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "If you were divorced last year and since that time, you’ve been distracted with the holidays, celebrating your new sense of freedom, or even contemplating new year’s resolutions in your post-divorce world, you likely haven’t taken the next steps you need when it comes to your finances. Many clients tell me that they feel stuck or paralyzed by all they have to do post-divorce. That isn’t surprising as there are three typical reactions when you are fearful, stressed, confused, or overwhelmed, which are to flee, fight, or freeze. If you find yourself in one of these reactive modes, you likely need a little extra support. In this post, we’ll detail what to do if you are newly divorced in the new year and the important to-dos you must complete now to protect your financial future. Make Peace with Feeling Overwhelmed As we mentioned, feeling overwhelmed is normal post-divorce. You may feel as if you are trying to get a grip on income and spending, especially after the holidays and asking yourself why this change in lifestyle is so painful. You have heard that updating your beneficiaries and estate plan is crucial but with everything else you need to do you put it on the back burner and wonder if it’s really necessary. If you are tackling all this alone, it probably feels like a full-time job to organize all the change with limited expertise and time. In fact, you may feel like you have still been making the biggest decisions about work, investments, and living situations all by yourself. However, if you have been checking off some of your financial to-dos, that is good news as the longer you wait, the bigger mess you can create. And, by losing time, you can also lose the opportunity to earn money. For example, procrastinating on tax planning can put you in a bind and leave you without ample time to determine the best tax strategy. This is especially true if a lot has changed with your taxes so the more you know, and the earlier you know it, the better. Now is the time to think about taxes, the list of to-dos you must complete, and finding the right team to help you achieve your financial goals. Take a Next Step Yes, we understand that you feel frozen, burned out, or confused following your divorce. Rather than accepting or avoiding the things you don’t understand or simply don’t want to do, take action now. This is especially true if your spouse handled the finances in your marriage and now you are left with limited knowledge of what needs to be done. Here is a list of action items to get started on as you take your next step: Complete the Post-Divorce Financial To-Do list. If it feels overwhelming, set a goal to complete a part of this list per week until the list is complete. Lean on a professional to help. Answer the big questions. The most significant questions will help you understand your financial strategy. Don’t put them off, and get the professional analysis you need to answer them thoroughly. These questions include: Should I go back to school or work? Should I move? How much should I be saving? When can I retire now? Has my QDRO been processed yet? Was I supposed to receive gains from my accounts when they were split? How much should I have received? 3. Work with a financial expert. You will save time and money, accelerate your progress, and get your questions answered quickly with the right expert. If you wait, you may run into the following scenarios and even one month can make a difference: Not earning money with your investments Exposing yourself to too much risk Leaving too much money sitting in savings Poor diversification Spending too much money and not understanding your true cash flow By working with a financial professional right away, you can get through your post-divorce financial to-do list quickly, and be ready to control your new future and make adjustments that reflect your values moving forward. During this transition time, a professional can also ensure you accurately received funds based on your divorce agreements, such as gains or losses on accounts or other unrecognized issues that you may not have even considered, and create efficiencies right away.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "08/02/2023", "datePublished" : "08/02/2023", "headline" : "New Year and Newly Divorced: Don't Put Off Next Steps", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-0S8mGj.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/new-year-and-newly-divorce-dont-put-off-next-steps", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Over the last decade, you’ve likely heard more about the importance of self-care or ways you can proactively take care of yourself to reduce stress and burnout. Because finances and money can be a top source of stress for so many people, there is an opportunity to view and manage financial stress with self-care, like you address other stressors in your life. In this post, we’ll dive into steps you can take to create and sustain financial self care in your life. Complete an inventory Getting a grasp on your finances begins with identifying what is working well and what areas need attention. This practice can help you recognize areas of strength and resources as well as vulnerabilities that should be addressed through budgeting and planning. To complete an inventory, write down all the aspects of finances in your life, including regular spending, savings goals, financial priorities, outstanding debts, and more. Getting an honest, truthful, and objective perspective by working with a financial professional can also reduce your financial stress. Create a budget If you don’t control your money, it will control you. Giving your money boundaries strengthens your relationship with money and will help you make financial decisions that are aligned with your values. Spend time analyzing the emotional or physical value you receive for each budget item and if it should be adjusted. When you consider the “value” of something, align it with its importance, worth, or usefulness in your life. Also, ask yourself how your values may have changed post-divorce and make sure you aren’t automatically assigning a value that was expected in your marriage. As you reflect on your values, you may find that you are pouring too many resources into an area that isn’t providing the appropriate level of fulfillment in return for what is given. For example, your mortgage payment is likely your highest expense and perhaps you don’t get all that much joy and satisfaction out of a home that provides far more space than you need. Maybe cleaning the large space produces additional stress that you don’t welcome in your life. It might be time to consider downsizing or even renting out some of your home on short-term sites like Airbnb. In other examples, maybe you’re eating out too much, spending too much on gifts, or paying for cable television that you know longer use. Next, use your inventory, which details both your resources and needs, to move items around in your budget so that it aligns with your financial vision and plans. For example, if you have family or friends who are willing to help watch your kids, you may be able to work more hours or engage in a side hustle. Lastly, create a cushion in your budget. Think of your financial cushion as your best friend. The best friend that always has your back in tough times. Life is nearly impossible without those relationships that help hold you up during storms. Recognize that emergencies happen, and you may even want to splurge on a trip or an item. At any time, a family member might need financial help. Reduce stress about money by creating this financial buffer and fostering this critical financial component into your life. Give yourself the gift of space, grace, and compassion around money, just like you give yourself this emotionally. Include self love Alongside taking responsibility for your financial success, plan enjoyable and fulfilling experiences or purchases that bring you joy and align with your values. Most individuals find more fulfillment in experiences post-divorce and this is a great time to invest in new hobbies and interests, which will also support your post-divorce healing. Maybe you have wanted to start skiing again or learn to knit. Perhaps joining a travel group will make it easier for you to continue traveling post-divorce. Prioritize activities such as going out with friends, shopping (thrift stores work great if you are on a tight budget), reading books, attending a college sports game, getting your nails done, or doing your nails together with a friend. Don’t neglect planning for your future While it is important to be a present-moment warrior, balance is crucial and necessary. One day, retirement will be your present moment. Budget and plan for the retirement life you want. Detail this vision in your inventory and use your budget to make your ideal retirement possible by investing now for tomorrow. Work closely with a financial professional to ensure you are saving and investing appropriately while getting any tax benefits available to you through detailed retirement planning. If you haven’t planned your financial life in advance, or don’t fully understand the resources available to you, you can lose sight of what’s possible. It is easy to get overwhelmed with life and try to remedy your feelings in the moment by buying things you don’t need instead of sticking to initial, thoughtful budgets and plans. This can be especially dangerous during a big transition such as a divorce where it’s common to purchase things emotionally or even get stuck in bad spending patterns. Whether you are just starting the process of building regular financial self-care into your life, or have been building these practices for years following a divorce, recognize the importance of these financial commitments to yourself. Contact us to learn more about our financial planning services or attend one of our free upcoming events.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "02/02/2023", "datePublished" : "02/02/2023", "headline" : "Financial Self-Care: Prioritizing Your Financial Needs", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-aAL1RB.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/financial-self-care", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "If you are recently divorced, you may be experiencing a lot of ‘firsts’. For example, you may have to do your own taxes for the first time and feel like a deer in headlights, frozen and overwhelmed by the facts and figures you are sorting through. Or, maybe you have to set up a budget for the first time and try and determine where your money should go, how much money you should keep in savings, how you should invest in the market, and more. Managing, monitoring, and learning about investments likely feels like a full-time job⁠—and one you aren’t getting paid for. In this post, we help you sort through one aspect of your divorce related to your investments and how you might be able to reduce your capital gains tax by considering some different investment strategies. Please note that this post does not serve as tax or investment advice and you should always consult with your team of professionals for individual guidance based on your unique situation. What to consider The most suitable investment management strategies take all of an individual’s financial considerations into account, including taxes. There is no question that post-divorce financial life is drastically different and you might not have a grasp on the most effective ways to invest or file your taxes. Working with a professional, especially if you have experienced a lot of change, will save you time, money, and headaches. It is overwhelming enough to address the issues previously mentioned and therefore quite easy to overlook that you may be paying substantially more in capital gains tax than you could be. Some post-divorce individuals may qualify for 0% capital gains tax when instead many people may be unknowingly paying 15% on their gains instead because they aren’t working with a financial professional who can provide guidance on money-saving strategies like this and more. The following individuals are more likely to qualify to take advantage of 0% capital gains rates on their investments: Post Divorce individuals with annual employment wages between $0-$60,000. Some of these individuals might also be receiving tax-free maintenance on top of their own personal wages. For divorces that were finalized before or in 2018, maintenance is usually taxable income (unless otherwise specified in their agreement) in which case their employment income and taxable maintenance would need to fall into this range. All divorces finalized after 2018 have tax-free maintenance and the payor does not receive a deduction. Individuals who received taxable investments from divorce asset division or maintenance lump sum payout. This type of payout creates ongoing taxable gains, especially if it is invested. If it isn’t invested, you might be missing out on key opportunities to grow your wealth and meet future life goals. Individuals who are not working with an experienced financial advisor who specializes in divorce circumstances. Many individuals qualify for 0% capital gains taxes but don’t know this is the case because they feel confident enough in their ability to manage their finances on their own and want to try and save on expenses or they are working with professionals that do not incorporate tax planning into their investment strategies and probably don’t know the client’s overall situation that well. Let’s break it down We know taxes and investments are a confusing topic, especially if you weren’t managing your finances in your previous marriage. Let’s look at an example to illustrate what kinds of savings are possible. With a little tax and investment planning, you may be able to qualify for the 0% capital gains tax rate that is available to taxpayers in the 10%-12% marginal tax brackets. Mary works as an executive assistant with an annual salary of $50,000. After her divorce, she begins to receive $4,000 per month in tax-free spousal support. Among the assets divided in her divorce, she was awarded a $300,000 investment account that holds stocks, bonds, and mutual funds. Those investments are managed by the same advisor who worked with her ex-spouse when they were married and she didn’t have much communication with this professional. The account is well balanced, has been growing steadily, and produces $9,000 (3%) in annual income. This additional income generated from the qualified dividends and long-term capital gains has pushed Mary into the 22% tax bracket from the 12% bracket that her salary aligns with. Therefore, Mary is paying $1,350 in taxes associated with these gains because she has been bumped into a higher tax bracket. What if there was a way to pay $0 in taxes and still have the account grow? Is it possible for you to pay 15% less in taxes on your investments? There are numerous ways to invest which all have various tax implications. Do you know which one is the best for you? Ask Yourself These Four Questions Now that you have a better idea of how your investment strategies can affect your taxes, the following questions can help you determine what to do next. If you answer ‘no’ or “unsure” to any of these questions, you should talk to your financial professional: What marginal income tax bracket are you in? How much are your investments producing in taxable income? Is your investment income pushing you into a higher tax bracket and therefore substantially increasing the taxes you owe? If you answered “no” or “unsure” to any of these questions, you should consult with your financial professional. It can be overwhelming to manage all your finances and understand all the changes you have experienced post-divorce. Your financial professional can help you understand your short-term financial choices and help you achieve your long-term goals.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "02/02/2023", "datePublished" : "02/02/2023", "headline" : "Playing Your Cards Right: Divorcees Who Pay 0% Capital Gains Tax", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-jw2Wfn.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/capital-gains-tax-mahlen-financial", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Any major life event, including divorce, can be a catalyst for overall life changes. By recognizing and accepting that any big life change will result in many other significant changes, you’ll likely find the transition easier. Knowing this, it’s possible to be intentional about the changes you want to see in your life during this crossroad. Those might include financial changes, a new work situation, changes in your family traditions, your schedule, dating, your living situation, and even your overall lifestyle. Change can be both overwhelming and exciting. In this post, we discuss how to own, plan, and design your post-divorce life by using divorce as a catalyst for positive change. Honor the Transition Divorce is undoubtedly stressful and the most challenging time of separation is often the time of indecision. During this time, it feels like you are trying to figure out what the future will look like without a true vision, blueprint, or roadmap to get you where you want to be. First off, recognize that the time of transition is often the hardest and that it won’t feel this way forever. At the same time, temporary arrangements made to parenting time, holiday time, or decision-making authority could change again as you negotiate the official decree. The more work you can do to create a plan for success, both financially and from a life design perspective, the sooner it will feel like a new normal rather than a time of uncertainty. Being intentional about what you want can help you settle into healthy and productive life patterns faster through adapting habits related to finances, a new job, a new parenting schedule, and decision-making. You can get clear about what’s possible and realize the future you desire through preparing, planning, budgeting, saving, projecting your retirement savings, and understanding any financial protections you may need (such as insurance). For example, if you plan to take on a new house payment, have a new job, and have savings set aside, working on a budget to understand how much you’ll want in retirement savings in your divorce settlement to complement other financial assets is critical to realizing the financial freedom you want in the future. Own Your Decisions In addition to struggling with the transition of your divorce and all the associated change, you may notice that, possibly for the first time in your life, you’re making decisions on your own. If you find yourself struggling with these decisions, know that that is normal. You are no longer making major life choices about everything from your living situation to your career with the input of your partner, his/her expertise, and perspective. You may feel added pressure or uncertainty due to these new autonomous dynamics. Once again, your divorce can be a catalyst for you to get clear about what you want, based on your values and life vision, which might even be difficult to even articulate after sharing so much of your life and self with a spouse. For example, if you are moving into a new house post-divorce, this may be the first time you have made the decision about your living space and location on your own. In order to make a decision that aligns with your needs, reflect on what is truly important to you without the influence of your former spouse and his or her opinions about living arrangements and circumstances. You now have the opportunity to define new decision-making criteria, taking financial considerations into account. Along with this, you have a new responsibility to yourself and your own happiness by choosing a path that aligns with your wants and needs. Get Clear about What You Want Divorce is an opportunity for re-evaluation, planning, and preparing for the life you want. It’s an exciting time for you to build your future! Recognize that the decisions you make as you negotiate various aspects of your divorce decree can have a ripple effect. As you consider all the options available in your future, notice how one change or decision can impact others and/or limit what’s possible for you from a work and earning perspective. For example, the parenting time agreement will influence what’s possible with your career as well as child support and/or maintenance. This will impact your finances as well. In another example, quitting or changing your job won’t necessarily impact your financial obligations or what you receive from your spouse for support, since imputed income and historical income will be taken into consideration in these circumstances. Instead of looking for ways to minimize what you might owe your spouse or extract as much value from your spouse, do what is best for your future long-term. Don’t get wrapped up in short-term wins. For example, sometimes going back to work immediately can ‘hurt’ your short-term situation and the support you receive, but not always. Other times, getting back to work immediately can help you from a resume-building and independence perspective, which can be rewarding psychologically, especially long-term. Your attorney can advise you based on your unique situation. Lastly, recognize when you are just trying to “win” in your divorce versus setting yourself up for the best financial future. Be willing to surrender and compromise for the best long-term situation, even if it means “losing” some aspects of the divorce battle. A major transition in life, such as divorce, can be a catalyst for positive change and you have an abundance of choices to make that can facilitate a secure and rewarding future. It’s possible to improve your finances and your relationship with your children, friends, family, and self during this time. By focusing on your values and investing in your financial future, you can reclaim the life balance you want. At A.M. Financial, we are here to help you budget and plan for the future with the resources you need. We can support your decision-making process by providing financial insights when it comes to planning the next phase of your life. Contact us to share more about your specific situation and learn about how we can help.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "13/01/2023", "datePublished" : "13/01/2023", "headline" : "Divorce: A Catalyst for Change", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-YOt7Qk.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/divorce-a-catalyst-for-change", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "While there is so much to sort through in a divorce, splitting up rental properties can add additional complexity to your separation. You do have several options for handling rental assets, and the option you choose will depend on your long-term financial goals. In this post, we help you determine whether your rental properties are marital or separate property, what to consider as you weigh the options to handle these investments and the tax implications of your decision. Is my rental marital or separate property? In general, rental properties that were purchased during your marriage are marital assets. If the property was purchased by one party prior to your marriage, then that property would belong to the original purchaser if the title of the property has been kept in their single name. However, any appreciation of a rental property that happened during your marriage is considered a marital value, even if one party owned it first. Learn more about marital versus separate property in detail in our related blog post. What options do I have to handle my rental investment? In general, you have four options when it comes to what you can do with your rental property in your divorce. Sell the Property: In the simplest and more common approach, neither of you keep the rental properties and instead, you sell them and split the profits net of fees and expenses, including applicable taxes. 2. One Spouse Keeps the Property: Another common approach is splitting up the properties as you would any other shared asset. In this case, one party gets the rental property and the other party gets an equal asset. Sometimes one party even moves into the rental home as their primary residence, depending on the condition and location of the property. You start this process by getting an appraisal to ensure the declared value is fair. Once this is agreed upon, the party keeping the property will need to refinance the rental in his or her name only. It is important to note that the party keeping the rental will need to be able to qualify for the loan on their own, without the spouse as a co-borrower. Therefore, mortgage planning is incredibly important prior to finalizing a divorce and a scenario that the team at A.M. Financial can help walk you through with an experienced divorce mortgage lender. Operate the rental properties together: A less common scenario is to co-manage your rental properties. This is not recommended in most situations but can be done, especially if you have an amicable separation. Sometimes parties choose this as a short-term solution until the market is favorable to sell. If you do choose this option, be sure to open an LLC or trust to hold the property and hire a property management company to manage the details so you don’t have to interact regularly with your ex-spouse. Split multiple properties evenly: If you own more than one rental property, you can both remain rental owners by equally spitting the properties. Once again, you would need to start this process with property appraisals to ensure the declared value is fair and you’ll need to have the means to refinance any properties in your name only. Therefore, you’ll need to ensure you can qualify for the loans you will need on your own. What are the tax implications of rental properties? Part of the financial preparation for a divorce is understanding the tax implications of your decisions around dividing assets. This is especially true for selling and/or transferring property as real estate is often the largest asset and carries the most tax liability or tax benefit. Taxes can vary based on your personal situation. Here are some tax considerations related to rental properties to keep in mind as you weigh the pros and cons of the various options above: Note that the personal residence tax exclusions of $250,000 for single tax filers or $500,000 for married filers do not apply to sold rental properties (unless certain requirements are met). Consider capital gains tax (which can be 15-20%) in addition to depreciation recapture (25%). These combined fees can reduce your profit received in a sale by upwards of 50%. Taxes can drastically affect the total net value received from proceeds received today or in the future. Ensure you understand the current and future implications of your decisions, which vary from asset to asset. When you work with a financial advisor who specializes in divorce, you work with an expert who can analyze the pros and cons of any decision related to rental properties, in the context of your entire asset portfolio. This analysis can inform your decisions, and help you clearly understand the tax-adjusted value of your assets when dividing all marital property. While this post addressed rental properties, many of the same concepts may apply to vacation homes or other second homes. Working with a Certified Financial Divorce Analyst (CFDA) helps you model various scenarios to ensure you are making the right decision based on your financial goals, giving you peace of mind and taking some of the emotion out of these difficult choices. When you work with a financial specialist who knows the unique implications and considerations of a divorce, you are more likely to have positive financial outcomes both now and in the future. Contact us for a consultation.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "10/01/2023", "datePublished" : "10/01/2023", "headline" : "Options to Handle Rental Properties in a Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-UjGEIZ.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/rental-properties-mahlen-financial", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Divorce season is upon us. January is the most common time for divorces throughout the year, for various reasons. Many couples are trying to get through the holidays for their families, or are taking time during the holiday season to reflect on their relationship happiness and make a decision in the new year. More logistically, other couples might be discussing divorce for awhile and choose to file at this time of year due to the financial clarity of filing at the beginning of the year from a tax and income perspective. Even if divorce has been on your mind for some time, don’t underestimate the changes that will occur during and after your divorce. Recognize how difficult this time may be for you, your family, your spouse, and your finances. Not to mention, the decision to get a divorce is not always black and white. If you still aren’t convinced that divorce is the right next step, explore Discernment Counseling with your spouse to get a more definitive conclusion about whether divorce is what you want. This method of therapy helps indecisive couples reach a stay or go decision about their marriage. Once you know that divorce is imminent, you’ll have to navigate two key tasks that are important in the early phases of your divorce: sorting through the finances and choosing a divorce method. In this post, we help you understand more about making decisions around these early tasks in your divorce. Prepare Financially Even before you officially file for divorce, it’s critical to get your finances in order. In fact, one of the first mandatory documents required by the court is a Sworn Financial Statement, which is a summary of your income, assets, debts, and expenses. As you complete this document, you’ll also want to verify account access and make sure your name is clearly on any assets that you own or co-own with your spouse. Is a Divorce in Your Future? Get Prepared with These Essential Tips. In addition to documenting various aspects of your finances, start thinking about your budget and your current or necessary spending. Instead of making any significant purchases right now, start putting aside money for future needs such as divorce expenses, possible moving expenses, new furniture, and even a deposit on a new place to live. If possible, pay off as much debt as you can before filing to reduce the complexity of your settlement. Lastly, begin to interview financial advisors that can help you plan for your financial future alongside your divorce (no matter which divorce method you choose). Choose a Divorce Method If you aren’t familiar with divorce, you may assume it will look like it does in the movies with courtrooms and high-powered attorneys presenting their side of your case to a judge. That isn’t the way more divorces unfold in the real world. In fact, there are four common divorce paradigms with pros and cons to each approach. Choosing the right method for your situation will impact your finances, timeline, relationship with your former spouse, settlement, and other aspects of your life. The divorce method you choose largely depends on how much you can spend on your divorce, your desired timeline, and how amicable the situation with your ex is. The four common types of divorces are: 1. Do-It-Yourself (DIY) Divorce This is a good choice if you have minimal conflict with your ex. It’s also favorable if you have fewer or less complex assets, similar income, and/or no children. Of course, one of the top benefits is saving money, yet sometimes this type of divorce can get drawn out if there is confusion about what to file, or if one party is dragging their feet. Without experts guiding the process, there may be more misunderstandings or confusion, especially about long-term needs or agreements. It’s critical to work closely with a financial advisor who specializes in divorce if you choose a DIY divorce so that you make informed decisions about your finances. A divorce coach can also be helpful in a DIY divorce, providing guidance, non-legal expertise, and support during this time. Divorce coaches are especially helpful if you expect a significant life change following your divorce, such as a new job or relocation, or endured an abusive relationship with your ex. 2. Mediator-Led Divorce A neutral third party can often help guide you if you and your spouse are mostly on the same page about their divorce, and mediator-led divorces can cost far less than hiring attorneys. This method of divorce often reduces conflict and speeds resolution on key disagreements around parenting time or how assets will be split. Both parties often feel heard and don’t experience the emotional toll of going to court or battling toward desired outcomes through their attorneys. However, the quality of the assigned mediator can have an effect on the outcomes and occasionally, limited time means that important topics are overlooked. 3. Litigation & Hiring an Attorney Some couples might try the first two methods before eventually hiring attorneys and preparing for court. This can sometimes be the only option if there is hostility, ongoing disagreement, safety concerns, abuse, addictions, or a reluctance to compromise. This method can be the most expensive and can have the longest timelines since the court is involved. You may feel less in control of the outcome of your divorce negotiations. On the plus side, having someone advocate for you can set you up for long-term success and stability. Recognize that hiring the right attorney by screening them in an interview is essential to getting the outcomes you want. Don’t overlook how important it is to choose an attorney with the experience and resolution style you need to settle your case, as well as one who is aligned with your values. Ensure that the attorney you choose is open to working with other experts in your divorce, whether you consult them for parenting time advice or financial guidance. 4. Collaborative In a collaborative divorce, a team of professionals help you settle out of court. The team can includes coaches, financial professionals, mental health experts, realtors, appraisers, mortgage professionals, child behavior specialists, and more. This is a great choice if you and your spouse’s goal is to retain the best post-divorce relationship, and are solution-oriented. In this type of divorce, you commit to reaching a mutually acceptable agreement. The professional team helps you reach resolution and creates a supportive environment of healing and recovery for your whole family. Learn more and find professionals on the Colorado Collaborative Divorce Professionals website. Consider what method might work best for you based on the relationship with your ex, the resources available to you, and the timelines you hope to achieve with your divorce. Begin interviewing the experts you need early in the process, so you are ready to meet timelines and stay informed about your options. If you need help organizing your finances and understanding your financial disclosure obligations in your divorce, contact us for professional financial support. If you would like to receive a list of the top divorce methods, along with their pros and cons, contact us for a copy of this important resource.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "04/01/2023", "datePublished" : "04/01/2023", "headline" : "Divorce Season: Key Tasks for Success", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-Ue7fIJ.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/divorce-season-key-tasks-for-success", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Getting a divorce means learning a whole new vocabulary of legal and financial terms. Therefore, having a team of experts to talk you through new concepts and what to consider as you make important decisions is essential to surviving the divorce process. In this post, we share our expertise around how to determine whether your property is separate or marital and what that means or your division of assets. Please note that this article details general expertise and please consult your attorney and team of professionals for specific guidance. What is considered Marital Property? Just as it sounds, marital property is shared property in the marriage. Examples of marital property include property acquired after the parties are married, which is technically from date of marriage to date of filing for divorce however, the laws do vary by state and in some cases by specific situations. Marital property also includes property appreciation, which happens if the property was acquired before the marriage by one spouse but has gained value during the marriage. That appreciation is considered a marital asset. On the other side, debt accrued together is also marital debt. Sometimes questions arise with clients about how property is titled or who’s name is on accounts. It is important to note that it does not matter whose name is on the titles of cars, homes, rental properties, or other assets. If they were acquired while the parties were married, they are shared assets regardless of these legalities. The same goes for money in separate bank accounts, which is marital property if that money was accumulated during the marriage. In fact, all income earned by either spouse during the course of the marriage is considered a marital asset from a fundamental perspective. Gifts given from one spouse to the other during the marriage are typically marital property, although some exceptions apply and it’s always a good idea to seek legal advice from a state-specific specialist. Lastly, sometimes property exceptions are outlined in a prenup or postnup, which should also be reviewed by an attorney during your divorce. What is considered Separate Property? On the other hand, separate property is any property acquired separately before the marriage or any property or assets acquired after separation (even before the divorce is finalized). Exceptions to this, some of which are uncommon, include: Any gifts given by a third party to one spouse Inheritances acquired by either spouse at any time Money from a personal injury lawsuit paid specifically to one party for pain and suffering It’s important to note that all separate items must remain the party’s separate name in order to remain separate property. If these assets are co-mingled into joint title or joint accounts, they can become marital property. How is property divided? Generally, all marital property, assets, and debts are divided between the parties in a divorce. A division of property does not necessarily mean an exact physical division, but the overall value of all assets will be divided equally. For instance, if one party would like to retain all rental properties, the other party may receive more retirement funds. Separate property is not subject to division in this process. When you divide property, overall percentages are close to equal (50/50) in the end. If the division is not exactly equal the parties can either agree to the difference or can determine an ‘offset’ transaction in which one party will pay the other spouse a specific amount in order to make it as equal as possible. This is where negotiation strategy from your attorney and short- and long-term planning come into play with a financial advisor. Keep in mind that the overall percentage of assets can be drastically skewed if taxes are not taken into consideration, sometimes by up to 40% or more. A Certified Divorce Financial Analyst can help you perform analysis on this as most family law attorneys do not provide this service. Each divorce is different and parties have unique wants and needs based on their goals and vision of the future. Some things may be more emotionally or psychologically important to one part or better align to future goals and plans. For example, you can’t physically split a house, but one party can receive the house in the divorce and the other can receive the cash from refinancing the home, or another asset to offset the difference. One party may value the home more for the kids while the other may want to retire earlier. In this case, one spouse could also buy the other out. As another example, If maintenance is involved, parties can opt for a lump sum payout instead of monthly payments that would alter a 50/50 division. Equity in the home, or other assets, can be provided to the individual receiving maintenance in lieu of monthly payments. There must be sufficient assets available for this to be an option. This might be important to one party if cash is needed for a home down payment or vehicle purchase. When you officially transfer a property from a marital asset to one party in the divorce, the spouse not awarded the property must consent and relinquish all rights, title, and interest in the property by deed or other written agreement. This usually happens post-divorce with written stipulations of a specific deadline. At A.M. Financial, we help you understand different options for splitting marital property and what those options mean for your financial outlook now and in the future. We can provide the analysis you need to make decisions, and discuss how your needs and values align accordingly. Contact us for a free consultation and learn more about how we can support your divorce today.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "03/01/2023", "datePublished" : "03/01/2023", "headline" : "Separate vs. Marital Property: Understanding the division of assets in your divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-cpOdn4.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/separate-vs-marital-property", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "In my work supporting divorced individuals in the Colorado area along their financial journey, I see one particular group of clients who struggle more than others. Long-time stay-at-home mothers who weren’t involved with managing the finances or individuals who may have fully handed off financial management to their former spouse tend to have significant struggles during and after a divorce. In this post, I highlight the two main insights I have about this group. If you identify with this group, I’ll share ways you can change your perception of money to better support your financial goals. Lastly, I’ll offer ideas and tips to make the transition to post-divorce budgeting easier. Money is a Limited Resource Many stay-at-home moms had access to what may have felt like unlimited funds in their marriage. Some may have had a credit card that their spouse paid off and managed and used it freely for groceries, gifts, items the kids needed, registration fees for sports, spa days, and the list goes on and on. After a divorce, individuals who weren’t involved in financial planning or didn’t directly generate income for the family go through a period of relearning budgeting as they now likely have a fixed income and must fit their spending needs into a monthly allocation of maintenance and/or child support (along with any other supplemental income they might have such as now working outside the home). It takes time to fully recognize that money is limited, especially if it didn’t feel that way in their marriage. Only when we learn that money is limited can we really understand the true ‘value of a dollar and money in general. If you previously were not involved in money management of the home, you may be pretty far removed from all the expenses required for day-to-day living. If your spouse was a single-member CFO in the relationship, you may not even see all the bills that were coming out of your account via direct deposit each month or you may not have a clear understanding of the cost of maintaining things like a home, car, and more. You may even be overwhelmed by setting all this up yourself and making sure you have enough money in the right accounts for regular bills, checks, and payments to clear. If you weren’t involved in the day-to-day finances and budgeting in your marriage, you were likely also not part of retirement planning. Therefore, you may have a significant blind spot around how to budget and invest for retirement, how these decisions impact your taxes and the importance of planning for the future. It’s critical to get the help and support you need from a financial professional to ensure you don’t end up with a surprise tax bill or worse, end up unprepared with the resources you need for retirement. Most stay-at-home moms I work with post-divorce go through a process that leads them to understand money’s value firsthand. This comes through having to make hard decisions about what’s most important on a monthly basis, and learning how to make decisions when you have competing financial demands by creating a budget that aligns with your values. Budgeting is Key to Success Budgeting and money management can be extremely difficult post-divorce. It requires discipline, prioritization, and sacrifice. In order to create a budget that truly works for you and your family, you must first spend time outlining your values and aligning your limited money with those values. This process of understanding your financial priorities leads to the most life satisfaction when finances are tight. For example, if experiences are important to your family, such as vacations, nights out, dinners, and events, then you’ll have to make sacrifices elsewhere to prioritize spending in this category. If you appreciate and want to prioritize a nice home that is fully decorated, professionally cleaned, and landscaped, and have friends over regularly to enjoy it, your social finances might be spent in this category instead. It’s important to get clear about where items like new clothes, organic food, and putting your child in competitive sports fall on the value spectrum for you so that you can align your budget accordingly. As you work through the process of developing a values-based and realistic budget, have grace and patience with yourself and your advisors. As you get closer to understanding your financial limitations, you may want to share those more broadly with your family. Depending on the age of your children, you may want to create transparency around financial priorities in your post-divorce life and even get them involved in the planning and balancing of your budget. Similarly, you can share the amount of money you have budgeted for the holidays with close family members in an effort to align gift-giving expectations with your finances. A financial advisor can help you create a budget that not only aligns with your values but also improves your financial confidence by setting spending boundaries for you and your family. Committing to an ongoing relationship with a trusted financial partner means you can revisit this budget often to understand whether you must supplement it with part-time or full-time work and to ensure you are saving enough for retirement and emergency expenses. Budgets must also evolve with your changing family. Your teen children won’t have the same financial needs as your toddlers did, and your values will continue to change over time as well.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "01/06/2022", "datePublished" : "01/06/2022", "headline" : "Stay at Home Moms: Learning to Budget Post-Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-87B5FB.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/stay-at-home-moms-learning-to-budget-post-divorce", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Many divorcing parties believe their case will go to court because there is so much friction and disagreement about the path forward. The media also portrays divorce this way. In reality, it’s much more likely that you’ll settle details of your divorce through collaboration with your attorneys during mediation. Many courts will order mediation before you involve a judge in your case. Mediation saves the parties time and money because it takes more time and resources to prepare for trial than to negotiate with a mediator. Courts also order mediation because it is often successful and generally parties are more satisfied with the outcome of their case than those who ultimately go to court. In this post, we help prepare you for the financial aspects of your mediation, including steps you can take to get ready, building your support network, and understanding limitations. Prepare Your Case If you have arrived at mediation, then you likely haven’t been able to come to a complete compromise on an aspect of your settlement. In approaching mediation, you can more easily make a case for what you want in your settlement if you come prepared. Make sure to complete and exchange any required documentation, such as a sworn financial statement, before mediation. Create a list of key topics that matter to you to ensure the conversation stays on track. Meet with a Certified Divorce Financial Analyst (CDFA) before mediation to understand future cash flows, tax implications of asset division, and budgets. The more familiar you are with the subject matter the more comfortable you will be to negotiate toward a better outcome. Get clear about what you want, your goals, and your desired outcomes of mediation. Make sure you and your attorney have discussed these wants so that you can frame your negotiations around them. Consider what you’ll accept, from cash, to assets, to how you’d like the home divided and any other decisions that are unique to your divorce. Consider the tax consequences, financial logistics and benefits of all possible outcomes beforehand, so you understand the implications of what you might agree to in a mediation session. Calculate a post-divorce budget that you can present to the other party with detailed monthly income and expenses. Outline detailed future expenses like child care and health insurance. It can also be helpful to put together various scenarios based on employment situations (part-time, work from home, work in office) if you are currently not employed. Bring mortgage refinance information including future payments and cash out possibilities to be considered, timelines including when a mortgage can be refinanced based upon regulations, and what spousal or child support is needed. Design Your Support Network More than ever, people getting divorced are involving a variety of experts to advise them throughout the process. Consider who you might bring to various mediation sessions or who you may need to hire to support negotiations. Consider involving a financial expert who specializes in divorce to negotiate the details of your portfolio or a loan advisor to negotiate restructuring your home mortgage. Know Your Limits Don’t forget that you are not obligated to settle the details of your divorce in mediation. You’ll likely have a list of non-negotiables, and that is okay. You can walk away from these sessions if your non-negotiables aren’t being addressed in a way that is acceptable. You can also schedule multiple sessions if there are many details to negotiate in your divorce, if you need several different experts, or if long sessions tend to get heated. Sometimes, you may agree to a large part of your settlement through mediation, and still go to court for just one or two aspects that you can’t come to an agreement around. This can sometimes be an ideal outcome. A.M. Financial can help with financial expertise for those going through divorce by providing insights and tools unique to your situation. Contact us to share more about the finances of your divorce and learn how we can help.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "01/06/2022", "datePublished" : "01/06/2022", "headline" : "Preparing for Mediation in your Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-svNrIK.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/mediation-in-your-divorce", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "You may have heard about the big changes coming to retirement plans and savings options in 2023. Both changes, made by the IRS, benefit employees or those saving for retirement. These changes were driven by inflation and the associated macroeconomic impacts. In this blog post, we’ll discuss what to expect in 2023 and how to handle these retirement plan changes. Contribution Changes Every type of retirement account has maximum contributions you can make annually and/or maximum income levels that allow you to contribute. For 2023, the IRS has increased the maximum you can contribute to retirement accounts. This increase is historically one of the biggest jumps that we have ever seen. Specifically: 401K employee deferrals are increasing from $20,500 to $22,500. – Those over 50 years of age can contribute an additional $6,500. – IRA and Roth IRA maximum contributions are increasing from $6,000 to $6,500. Those over 50 years of age can contribute an additional $1,000. – The max income you can have to contribute to a Roth IRA has changed from $138,000 to $153,00 for head of household or single filing status. – The maximum is $228,000 for joint filers. While this seems like positive news, you might wonder how this impacts your retirement savings strategy. As mentioned, these changes keep retirement needs in line with costs of living, considering inflation. With these changes, it is encouraged for employees to max out their 401K and IRAs if their budget permits. It’s almost always recommended that employees max out their 401K to the point of getting a full employer match (which can be 1-10%) and is important to review with your financial advisor. Everyone’s financial situation is unique and by working with a financial advisor to create a budget that takes into account all your financial obligations, from mortgage payments to student loans, you can best take advantage of this change and its related tax benefits. Employer-Mandated Retirement Plans In the state of Colorado, there is a new mandate that employers with five or more employees must provide a retirement plan to employees. This plan is called the Colorado Secure Savings Program and it is essentially a Roth IRA with no required employer match. While it might not appear to provide direct benefits to small business employees who didn’t previously have a plan, it is a step in the right direction for those employed by a small business without retirement benefits. For example, many divorcees who work for small employers may not have previously had the ability to participate in a retirement savings plan therefore they didn’t save for retirement. Some of these employees may have previously been stay-at-home moms and don’t understand how to begin a retirement savings plan. While no employer plan can provide retirement resources to women who are simply stretched too financially thin to save, this new mandated plan is a great opportunity for women who work for small businesses to have access to the resources they need to increase their retirement savings. It’s an easily accessible way for more people to save in general. As always, it is always best to review your savings strategies with your financial advisor to determine what is best for you. While there are big changes coming to retirement accounts in 2023, they may not require significant changes to retirement planning on your end. However, even minor changes can have a big impact overtime. That’s why it is important to work with a financial planner to get all the benefits of these inflation-driven updates to retirement savings limits, and the new year is a great time to start thinking about saving in new ways.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "01/06/2022", "datePublished" : "01/06/2022", "headline" : "Retirement Savings Plans in 2023: What to Expect", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-oEckXY.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/retirement-savings-plans-in-2023-what-to-expect", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ```