--- title: Our Blog - AMF Divorce | Amy Mahlen (8) description: From mortgage professionals to therapists to attorneys, the team at A.M. Financial works closely with these types of professionals. (8) --- ## 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 ## [Filing for Divorce: Key Considerations](https://amf-divorce.com/our-blog/filing-for-divorce) June 01, 2022 There is never a good or easy time to file for divorce. You can second guess yourself for a long time, contemplating the right week to move forward, or even be conflicted about whether divorce is... [CONTINUE READING](https://amf-divorce.com/our-blog/filing-for-divorce) ## [Types of Divorce Professionals & How They Help](https://amf-divorce.com/our-blog/divorce-professionals-mahlen-financial) June 01, 2022 Like so many other things, divorce has gotten more complex overtime. Divorce has also evolved into a more integrated and holistic process, with the involvement of several professionals and experts... [CONTINUE READING](https://amf-divorce.com/our-blog/divorce-professionals-mahlen-financial) ## [Key Ways Inflation Impacts Your Divorce](https://amf-divorce.com/our-blog/key-ways-inflation-impacts-your-divorce) June 01, 2022 Over the last six months, you have likely heard the word “inflation” more often in the news, in conversations with others, and as an explanation for rising costs in almost all aspects of life. If... [CONTINUE READING](https://amf-divorce.com/our-blog/key-ways-inflation-impacts-your-divorce) ## [Retirement Accounts & Divorce: What to Expect](https://amf-divorce.com/our-blog/retirement-accounts-divorce-what-to-expect) June 01, 2022 There is so much to financially sort through during the divorce process. From [splitting physical assets to dividing up real estate to sorting through retirement accounts,](https://mahlenfinancial.com/post-divorce-financial-to-do-list/) different rules and laws... [CONTINUE READING](https://amf-divorce.com/our-blog/retirement-accounts-divorce-what-to-expect) ## [Part 1: What is Discernment Counseling and is it Right for Me?](https://amf-divorce.com/our-blog/discernment-counseling-mahlen-financial) June 01, 2022 If you are considering a divorce, you have lots of options to confirm whether that is the right decision for you and your future. Some people choose to go on a retreat or even a trip with their... [CONTINUE READING](https://amf-divorce.com/our-blog/discernment-counseling-mahlen-financial) ## [Post-Divorce Living Arrangements - Should I Rent or Buy?](https://amf-divorce.com/our-blog/post-divorce-living-arrangements-rent-or-buy) June 01, 2022 There are so many decisions to make during the divorce process, many of which can impact the course of your life significantly. From the parenting plan you agree upon to how you’ll spend holidays... [CONTINUE READING](https://amf-divorce.com/our-blog/post-divorce-living-arrangements-rent-or-buy) ## [Reentering the Workforce: 4 Post-Divorce Considerations](https://amf-divorce.com/our-blog/reentering-the-workforce-mahlen-financial) June 01, 2022 Depending on the financial dynamics of your divorce, you may consider whether or not to re-enter the workforce. Maybe you are still in prime working years and you are reentering after being a... [CONTINUE READING](https://amf-divorce.com/our-blog/reentering-the-workforce-mahlen-financial) ## [Sworn Financial Statement: An Explanation of How to Complete](https://amf-divorce.com/our-blog/sworn-financial-statement) June 01, 2022 While divorce is undoubtedly a highly emotional event with ups and downs to sort through for years, it is also, more logistically, a paperwork-intensive process. After filing, the paper trail of... [CONTINUE READING](https://amf-divorce.com/our-blog/sworn-financial-statement) ## [Saving for Retirement after Divorce](https://amf-divorce.com/our-blog/retirement-after-divorce) June 01, 2022 In working with clients throughout Colorado, many divorced women do not save much for retirement. This is especially true if 100% of their income is coming from maintenance payments. It’s important... [CONTINUE READING](https://amf-divorce.com/our-blog/retirement-after-divorce) ## [What should we do with the home in our divorce? ](https://amf-divorce.com/our-blog/home-in-divorce) June 01, 2022 If you are going through a divorce, one of the top questions likely on your mind is what to do with your marital home. This decision has financial, emotional, educational, and even social... [CONTINUE READING](https://amf-divorce.com/our-blog/home-in-divorce) - - [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) - [10](https://amf-divorce.com/our-blog/author/amy-mahlen/page/10) - ##### 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" : "There is never a good or easy time to file for divorce. You can second guess yourself for a long time, contemplating the right week to move forward, or even be conflicted about whether divorce is the right choice for your family for a long time before you act. You and your spouse might have a good week and you begin to question your decision, or you feel concerned about managing finances on your own, so you tell yourself that you can make your marriage work with more effort. However, most of the issues that are causing you to contemplate divorce may never go away and could be the reasons you ultimately choose to end your marriage. In this post, we detail top financial and living considerations in the divorce process and address top questions you likely have that might help you decide when and how to file for divorce. Financial Considerations While divorce is primarily an emotional decision, it’s important to understand the financial impact of your filing date. After Filing for Divorce: Once you have officially filed for divorce, the court will officially begin to oversee your finances. This is sometimes referred to as assets being ‘frozen’. In reality, finances are not frozen, life can continue as usual, and parties can spend the ‘status quo’ such as buying groceries and covering regular needs. Anything out of the ordinary, such as transferring funds to a separate account, requires notifying the other party and may require their approval (which might include a discussion with legal counsel). Beneficiaries on retirement accounts or life insurance policies can not be changed without permission. Both parties will be held accountable to the court to ensure marital funds are not being ‘wasted’ and a standard of complete transparency is expected. Asset and debt accumulations will continue during this time and will be updated throughout the divorce process. Due to these continual updates, generally speaking, the official financial stopwatch does not end until a divorce agreement has been made or the parties are given permanent final orders. Depending upon how long your divorce takes, it is important to consider future big bonuses, financial milestones, job changes, larger purchases, or big expenses that you have coming your way and how those might impact your decision of when to file. Social Security: Social Security is another financial consideration, especially if one spouse hasn’t been working or you have a significantly lower historical earnings record. After a divorce, you can collect Spousal Social Security benefits based on a former spouse’s earnings record. The spousal benefit is 50% of your ex-spouse’s benefit if that amount is greater than 100% of your own social security benefit. In order to meet the requirement to receive this benefit, you must have been married to your spouse for 10 years or more, you must be at least 62 years old (to receive a reduced social security benefit), and you cannot currently be married/remarried. If you get divorced when you are 50 years old, you can still receive the Spousal Social Security benefits when you reach the age of 62, as long as all the other criteria are met. This is especially important if one spouse stayed home with children while the other spouse generated most of the income. Even if your ex-spouse remarries (and possibly receives a spousal benefit), as long as you have met the above requirements, you can still claim a spousal benefit on your ex-spouse’s social security record. State Laws: Consider state laws that are specific to your area. These may detail unique requirements around asset division, spousal support, and/or child support. In almost every state, the age of your children and the length of your marriage will influence the total dollar amount of your spousal or child support obligations. Taxes: Taxes and filing status will be impacted by the time of year you file. As a reminder, your tax filing status is determined by your marital status on the last day of the year. That means that if your divorce is final on December 31, then you will be filing non-married for the tax year. Because there are benefits to filing jointly, including more tax credits, this is a significant consideration from a financial perspective. In Colorado, a required waiting period of 90 days after filing must be met before a divorce can be finalized. Living Considerations Financial and living considerations are closely related. Living considerations may be incredibly important if your divorce involves children or a parent who is a primary caregiver. In some cases, one spouse may have left or moved out to reduce the conflict, but decisions on the home and living considerations will still involve both parties. Here are some questions you may want to ask yourself and/or discuss with your spouse to provide clarity on the best living situation for your family post-divorce: Does one party want to stay in the home? Could one parent refinance the house and are rates favorable to do so? If one party can refinance, is there enough equity in the home that could be available to the other spouse if needed for their new living arrangements? Will the house need to be sold from a financial perspective? Is it a good time to sell? How is the real estate market? Will we make money if we sell now? Is now a good time to find new housing? Is the housing market in a place where both parties can easily move out and find new living arrangements? If we sell, is each person’s credit strong enough to get a house and car on their own? Is the economy strong enough for a non-working spouse to find a job and afford a place to live on their own? Is it better for the children if the home is retained or sold? Will potential new living arrangements force the children to change schools and be required to build new social connections and support? Are there any future repairs that are needed and how will they be paid for if the home is kept or sold? Answering these questions may help you understand whether you and your spouse see eye to eye about what should happen with the house. If there is not a strong consensus, you’ll work out these details in your divorce process, whether you choose to hire attorneys, use a mediator, or work in a collaborative divorce setting. External factors like the job market, real estate market, and interest rates will undoubtedly impact your divorce. Considering these key factors relative to when you file could reduce friction in the divorce process and provide more options to help settle your case as amicably as possible. Other Considerations Many parties fail to understand that it doesn’t matter who files for divorce. It does not impact the decree and there is no benefit to being the Petitioner or the Respondent. In fact, some parties even file as Co-Petitioners. In this “joint filing” scenario, you both sign the paperwork and you avoid the need to have the other party “served” papers which has both financial and emotional benefits. However, if your spouse is dragging their feet and not acting on your desire to file jointly for divorce, or if you are stuck in a loop of unsuccessful reconciliation, you can force the divorce by filing and having paperwork served to your former spouse. This is also a good idea if your spouse is physically, emotionally or financially abusive as it provides you some level of protection. Finally, it’s natural to consider holidays, existing commitments (weddings, anniversaries, graduations, vacations, reunions, etc), and major milestones when you choose your filing date. For this reason, January is often “divorce month” as couples feel that post-holiday timing might be better for everyone involved, especially children. January filing can also make financials cleaner as you have access to end of year statements. At A.M. Financial, we can help you evaluate the best time to file and help you plan accordingly. We can work closely with you and determine which considerations are the most financially significant so you can make the best decisions for your family. Contact us for a free consultation where we can learn more about your unique situation and further explain how our services 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" : "Filing for Divorce: Key Considerations", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-VOTaDf.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/filing-for-divorce", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Like so many other things, divorce has gotten more complex overtime. Divorce has also evolved into a more integrated and holistic process, with the involvement of several professionals and experts being the “new normal” in many cases. In the past, these kinds of professionals were more commonly brought into a collaborative divorce, and it’s now clear that they can help significantly in most divorces. With so many types of divorce professionals to help, whether or not to hire an attorney isn’t the only decision you have to make and an attorney may not be the best professional to contact first, depending on your needs. With types and methods of divorce expanding, so do your options when it comes to hiring divorce professionals. Here are eight types of divorce professionals and how they can help. Attorney An attorney is the most common divorce professional to employ. Family law and court procedures are complex and an attorney is trained and experienced in the ins and outs of family law. Make sure to interview a handful of attorneys and choose one with experience in your state as many laws do vary by state. You can work with an attorney in a variety of ways, including: Limited scope or partial representation: An attorney will only deal with a few agreed upon issues or serve in a consultative fashion. Full representation: An attorney will handle every part of your case. Mediator A mediator is an impartial and neutral person who assists parties who are negotiating their different perspectives about the divorce settlement. A mediator assists and guides the parties toward their own resolution. They facilitate a private process where, as a neutral third party, they discuss options with the parties to try to resolve any disputes about the pending divorce decree or parenting plan (if applicable). Some mediators will help explain the court process, paperwork and what must be filed when however they will not complete or submit anything to the court. Is a Divorce in Your Future? Get Prepared with These Essential Tips. They can be appointed by the court or privately selected by agreement of both parties. Most courts will require you to try mediation before litigation. Mediation is a far less intimidating step than litigation proceedings and allows you to discuss your wants and desires in a more casual way before going before a judge. It’s safe and usually recommended to try mediation because neither party can bring up the details of mediation if your case does go to court. Divorce Financial Professionals There are a variety of divorce financial professionals you can work with based on your unique situation and goals. For example, A.M. Financial provides financial services to help you build a new financial picture. Having financial services and expertise available during the divorce process can dramatically decrease your stress, anxiety and uncertainty regarding your finances during this time. Not only do financial planners help you stay better informed on your situation, they can support the exploration of creative settlement options based on your short and long term goals. Specifically, a professional with the robust Certified Financial Planner™ designation who specializes in divorce can help you: Identify cash flow problems Address and plan for future income tax concerns and changes Understand the financial implications of keeping the marital home Identify business expenses to be added back to income Analyze and value retirement assets Understand the current marital value of a pension Prepare future cash flow needs Explain and plan for distributions from retirement accounts Establish and integrate a comprehensive, workable budget into the agreement that sets up both parties for success If you are specifically concerned about achieving an equitable divorce settlement, a Certified Divorce Financial Analyst (CDFA) uses their knowledge of tax law, asset distribution, and financial planning to help support the couple as a neutral party or on an individual basis as an advocate for one party. CDFAs help parties consider both the short and long-term financial impact of their divorce settlement arrangements so they can make the most informed decisions possible. Divorce Coach A divorce coach will help you with the transition into your new life after divorce. They will help you navigate your new circumstances by providing support and resources to help you with everything from your new solo parenting responsibilities to finding a new home or job. They may also help you work through the difficult emotions surrounding your divorce essentially trying to keep from emotionally ‘falling off the rails’ and provide resources to support your healing. Realtor In most divorces, property is a joint asset that needs to be split between parties. Typically the largest asset for divorcing couples is their home, and a realtor can help with the process of valuing and selling the home in the divorce process. Make sure to choose a realtor with expertise in selling property amidst a divorce and someone who will keep the best interest of both parties in mind (including selling price, timelines, negotiations, etc). A realtor can also tell you whether the market is good for parties to sell their home and find new, individual homes. A realtor who is trained in divorce has experience working like a mediator with a couple who may not always agree on items such as listing price, items to fix, etc. during the selling process. Mortgage Lender Mortgage Lenders can help partiers understand proposed property settlement agreements and the short and long-term impact of these settlements. Based on mortgage rates and lending dynamics and proposed settlement agreements, they can help parties understand: Whether they should sell their home as part of their settlement Whether one party should and can refinance the home on their own What lending rates look like and how that will impact financing the current or new homes If you have a complex property arrangement, there are even Certified Divorce Lending Professionals who bring the financial knowledge and expertise of Divorce and Family Law, IRS Tax Rules, and mortgage financing strategies into real estate and divorce situations. They can be hired as a neutral third party or by one individual to make recommendations and suggest scenarios when it comes to refinancing or selling property. It is essential to review your proposed settlement agreements with these proposals before officially signing any agreements. Parental Responsibility Evaluator or Child Family Investigator Either party can request or the court can order a Parental Responsibility Evaluator (PFE) or a Child Family Investigator (CFI). A CFI, which is more common than a PRE, investigates family dynamics and makes recommendations in the best interest of the child around parenting time and decision-making. They will often use questionnaires, visits, interviews, reference checks, and other approaches. A CFI assessment typically takes about 60-90 days and results in a report that will detail recommendations to the judge or attorneys. A PRE is specifically a mental health professional who focuses on determining appropriate parenting time and decision-making. Sometimes there are specific circumstances or unique concerns that require a PRE such as substance abuse issues, mental health concerns, abuse, or sexual misconduct. A PRE helps determine things like parenting rights and schedules as well as the need for therapy for the family or individuals within the family. The evaluation by a PRE typically takes 90 days. Divorce is becoming increasingly more complex, which often means you need a more robust team to ensure you get the outcomes you want. We are here to provide the support you need and join your team or divorce professionals. If the financial side of your divorce isn’t clear, or you want to model and discuss different ways to divide finances based on your goals, we can help. Schedule a consultation to learn more.", "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" : "Types of Divorce Professionals & How They Help", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-0hSfLL.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/divorce-professionals-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" : "Over the last six months, you have likely heard the word “inflation” more often in the news, in conversations with others, and as an explanation for rising costs in almost all aspects of life. If you are going through a divorce alongside these market dynamics, you will be impacted by inflation. Simply put, if you expect to receive maintenance in your divorce, you are at a higher risk of feeling the effects of inflation because the fixed value of that maintenance won’t go as far to pay for rising expenses. These dynamics aren’t unique to high-inflation times, but are felt more during turbulent financial times. In fact, an individual receiving maintenance will always have significant exposure to inflation risk, especially if they are unemployed. This is because most of the time, the maintenance received doesn’t change during the life of the award (assuming the award is never modified), while costs continue to rise over time. This reality can be deceiving if you don’t understand the effects of inflation, especially on a long-term maintenance award. Even during times of normal inflation (2.5%) an award is eroding by inflation. The current environment (which is closer to 8%-9%), could wreak havoc on a maintenance award. Whatever the level of inflation, it erodes the purchasing power of a maintenance award and individuals receiving maintenance should be aware and plan accordingly. In this post, we outline key considerations, questions, and strategies to address inflation in your divorce. The effects of inflation The effects of inflation are felt immediately when you start to receive maintenance. Consider inflation like an income tax that doesn’t require a tax return filing or a mandatory tax withholding from a retirement account withdrawal that was not expected. Imagine that, instead of receiving a $20,000 withdrawal that you requested you only receive $16,000 because the difference was withheld for taxes. In other words, divorce can be challenging to navigate because not only do most divorcees experience many unforeseen expenses that pile up such as health insurance and car payments, you are automatically starting from a more cash-strapped wallet due to inflation. These dynamics are unique to those who receive maintenance because wage earners don’t have inflation risks to the same degree as an unemployed person. An employed person’s earnings can grow over time through cost-of-living raises. If you are retired or not planning to re-enter the workforce, you will feel inflation to a greater degree. Ask the right questions There are several things to keep in mind to address inflation in your divorce. These are great questions to discuss with a financial expert or dedicated financial resource. The answers to these questions can help you successfully negotiate a possible maintenance award and/or the division of assets in your divorce as well as protect your financial future. What other assets are you receiving from the divorce? Understanding whether these assets can grow and counterbalance some of the dynamics of inflation will help you make decisions about the division of assets in your divorce. Are the assets available if needed and can I rely upon them with minimal taxes and penalties? Understand the liquidity constraints of your assets and whether selling them results in tax consequences. At what rate will the assets grow? Will they keep up with inflation? Property and stocks may grow quickly whereas other assets may not appreciate at the same rate or may have higher expenses associated with them. Understanding how assets grow and modeling their potential is an important step in planning your divorce and planning your future. How much margin have you built into your future budget? Knowing how much flexibility you have if inflation worsens and how much risk you can absorb can help you navigate future budget expectations. Will you need to plan on downsizing your living arrangements and lifestyle while retaining growth assets as much as possible? Modeling whether you have enough diversity in your portfolio to weather the storm of inflation (including property, stocks, 401(k) accounts, cash, and more) can give you peace of mind about your financial future. Have you made future employment plans to address your needs if necessary? Depending on the financial dynamics of your divorce, you may consider re-entering the workforce to earn income that can supplement the impact of inflation. Strategies to manage inflation There are things you can include in your divorce agreements to protect yourself from the effects of inflation. For example, some individuals and attorneys are requesting and advocating for a cost of living provision or adjustment in their maintenance awards. This essentially recalculates the maintenance award annually based upon the current Consumer Price Index. Another approach involves balancing assets that will likely increase in value over time with aspects of your maintenance award that will decrease in value over time, in your divorce negotiations. Keep in mind that inflation can also raise the value of the things you own, including the value of your home and stocks. Include these assets in your portfolio with those that might have a more increased probability of losing value in the future due to inflation. If the marital estate has enough assets to do so, you can even consider a lump sum maintenance award that can be invested and grow, which can lessen the risk of inflation while improving liquidity. However, investment risks must also be controlled and balanced so working with a CDFA or financial advisor is crucial to understanding whether this is the right approach for you. Working with a financial expert to help you understand the impact of inflation is necessary to address the confusing and complex market dynamic of inflation. At A.M. Financial, we offer financial modeling, planning services, and consultative expertise to support your decisions in divorce, including decisions regarding the division of assets. Contact us for a free consultation. Divorce transition/financial planning services offered by A.M. Financial. Investment advisory services offered through WealthSource Partners, LLC (“WSP”). A.M. Financial and WSP are independent and unaffiliated entities. The statements and opinions expressed are those of A.M. Financial and Amy Mahlen and do not necessarily represent the views and/or opinions of WSP or any other associated or affiliated person of WSP. Furthermore, the statements and opinions expressed are for informational and educational purposes only and should not be construed as legal, tax, accounting or investment advice. All statements and opinions are current only as of the time made and are subject to change without notice.", "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" : "Key Ways Inflation Impacts Your Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-ZJn0lp.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/key-ways-inflation-impacts-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" : "There is so much to financially sort through during the divorce process. From splitting physical assets to dividing up real estate to sorting through retirement accounts, different rules and laws apply for different types of marital assets. In this post, we discuss how retirement accounts are typically handled in a divorce, what to expect, and what to consider as you make decisions around this part of your divorce process. How retirement accounts are typically handled in a divorce While retirement accounts can have only one account holder, the funds in these accounts belong to the marital unit as a whole. This is true despite the fact that the account title or funds may have come from one spouse’s payroll deduction (such as 401k contributions). Therefore, overall, any accumulation (including contributions and investment gains) during the marriage is considered a marital asset and is accounted for in the overall division of property. It is important to note that any balance in retirement accounts accumulated before marriage is considered separate property since the funds were earned before the date of marriage. Sometimes the 50/50 rule of splitting each asset, including retirement accounts, is not practical for the couple. If, for example, one party wants the house or other large assets, sometimes off-setting one asset for another could be an alternative to help settle the case. In this example, if one party wants the house but does not want to buy the other person out based on the current home’s value, the person who is not getting funds from the house could request more retirement funds in the divorce settlement, because of significant tax differences associated with each asset. It is imperative to work with an experienced financial professional to help you evaluate a division in this manner as the adjustments to division values can be dramatically different for each individual. Note that some laws and regulations around this are state-specific, so choose a financial team that has experience in your state. Specifics of how accounts are divided There are a variety of retirement accounts that are subject to their own rules and regulations in a divorce. Below, you’ll find common account types and the process of how to divide the account. Roth IRA and Traditional IRAs (SEP-IRAs and Simple IRAs) The process to divide these assets requires a ‘Transfer Due to Divorce’ form to be signed (usually by both spouses, but not always) from the account institution. A copy of your divorce agreement outlining said division is usually required. Roth IRAs hold funds that have already been taxed and Traditional IRA accounts usually (not always) hold funds that have not been taxed. This contrast creates significant differences regarding withdrawal penalties, when assets can be distributed, and overall taxability. The tax discrepancies significantly affects how much net money is received at the time of distribution – in other words, how much money someone can actually walk away with and actually use. Due to the tax liability of these accounts, financial professionals can create account division strategies to address these differences alongside each couple’s needs and concerns. Similar to Traditional IRA accounts, SEP-IRAs and Simple IRAs are unique employer retirement plans that can have employer contributions. The assets in these accounts have not been taxed and may have withdrawal restrictions depending on how long the account has been open. Even though these accounts are employer retirement plans, they only require the ‘Transfer Due to Divorce’ form from the institution in order for the account to be divided. Employer-sponsored retirement plans (401K, Profit Sharing Plans, etc) The process to divide these assets requires a Qualified Domestic Relations Order. This requires that a professional drafts instructions based upon the agreement, which is reviewed by the company sponsor for approval, and signed by a judge. This process comes as an added expense with one qualified domestic relation order (QDRO) required for each employer retirement account, and typically takes at least 3 months to complete from the time of submission if there are no complications. It’s important to note that only the vested value is considered an asset and subject to marital division. To add complexity, many 401K accounts can have a Roth 401K component which creates very similar differences as the Roth IRA versus Traditional 401K as discussed above, from a tax liability perspective. It’s important to work closely with a financial professional to understand these details as the 401K statement may not make it obvious that there is a Roth component to the overall account, which impacts the way these accounts should be equitably divided. Some 401K plans offer participants loans from their 401K accounts. With that in mind, it is important to note whether a loan has been taken against this account previously and determine how to properly account for it during the divorce process. Employer Defined Benefit Plans (Pensions) A pension plan is a retirement plan that requires an employer to make contributions to a pool of funds set aside for a worker’s future benefit. The future benefit can be taken in the form of a lump sum upon retirement or a monthly benefit for the rest of the employee’s life (with various survivor options available). A QDRO is required to divide this plan, although some plans require a domestic relations order (DRO) which is a form outlining payment and survivor plans from the institution and therefore professional assistance is highly recommended to ensure it is filled out properly to reflect your wishes. Once submitted, it is very difficult if not impossible to correct mistakes. Pensions are particularly confusing in the divorce process and pension valuation is usually required to analyze the equitable division of this asset, unless it is already in payment status. Individuals often underestimate the total value of a pension and, depending upon the situation, these can be very large assets. In addition, survivorship planning is critical and varies from plan to plan. The complexity of pensions and the fact that they vary from company to company with various restrictions and distribution requirements makes it essential to work with a financial specialist and QDRO specialist to ensure your divorce agreements reflect these intricacies. Working with the right team also ensures that you avoid post-divorce issues. Annuities The process to divide these assets requires a ‘Transfer Due to Divorce’ form to be signed, usually both by spouses (but not always), from the account institution. A copy of your agreement outlining said agreement is usually required. As a reminder, annuities can be in the form of an IRA or non-retirement, investment account. It’s important to analyze the tax implications properly. When dividing annuities, you may be subject to surrender fees, depending on how long the account has been open, if the account is divided. In other cases, there may be unique provisions, such as doubling or tripling future benefits at various times, or rules around how distributions can be taken and/or the amount of the distribution. Sorting through these details, once again, requires the assistance of a financial specialist with experience in your state. Mapping Account Transfer Specifics Most couples will have several different types of retirement accounts unless they have stayed with one employer throughout their career or have a simple financial situation. Based on the differences of these various accounts, it’s important to map where the appropriate destination of assets will be transferred to. For example, although parties can roll over 401Ks, sometimes different types of accounts cannot be combined and therefore one party can end up with a portfolio of different retirement accounts with different tax rules. Working with a financial professional can help you map an efficient and effective transition that can reduce tax liability, transfer expenses, and help you avoid errors that can cost you time and money. Retirement accounts can lead to confusing financial situations and more questions than answers for most divorcing couples. At A.M. Financial, we specialize in helping sort through these messy financial situations and help you make decisions that support both your short and long-term financial goals. We can work with you to achieve a fair and equitable split based on these different rules, realities, and tax consequences. Contact us for a free consultation.", "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 Accounts & Divorce: What to Expect", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-11wKW2.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/retirement-accounts-divorce-what-to-expect", "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 considering a divorce, you have lots of options to confirm whether that is the right decision for you and your future. Some people choose to go on a retreat or even a trip with their spouse to talk through the right path and next steps. Other couples attempt marriage counseling for a length of time to try and validate their feelings and inclinations about the marriage. Other people might stay in limbo far too long, worried about how the decision to get divorced could impact their families, finances, friends, and future. One approach you can explore, if you aren’t 100% sure whether you want a divorce, is Discernment Counseling. In this post, we outline what Discernment Counseling is and who is a right fit for this methodology. What is Discernment Counseling? Discernment Counseling is a step between couples counseling and divorce with the goal of helping a couple or individual decide if they truly want to go through with a divorce, or take other steps to repair their marriage. Discernment counseling can be for a couple or an individual. Oftentimes, individuals who go through Discernment Counseling have struggled with the decision to get a divorce for a long time. They value getting insight from a professional who works with those contemplating divorce regularly, and someone who can provide additional context on the in and outs of the divorce process—as well as post-divorce life. The outcome of Discernment Counseling is a “go” or “no-go” decision about divorce. If a couple chooses not to move forward with the divorce, typically they commit to at least six months of counseling to address and overcome their unmet needs and communication challenges that are causing issues in the relationship. How Does it Differ From Traditional Counseling? Marriage counseling tends to get at the root of the issues in the relationship whereas Discernment Counseling helps a couple or individual make a decision to either move forward with a divorce or commit to further couples counseling. Usually, Discernment Counseling includes a counselor spending time with each party individually, as well as together, to understand whether: They want to be married in general They want to be married to their partner The why or why not of their decision Discernment counseling is typically 1-5 sessions that are 90-120-minutes in length. It is a relatively inexpensive way to validate whether you are making a really expensive mistake (both emotionally and financially) by divorcing if the relationship is repairable. The goal of the Discernment Counseling sessions is making a definitive decision about a relationship while marriage counseling’s goal is to improve the health of the relationship over a longer time frame. Who is a Good Fit for Discernment Counseling? Discernment Counseling is a great fit for individuals or couples who are even slightly ambivalent about the right next steps in their marriage. If there is any desire or inclination to save the marriage, Discernment Counseling can help a couple choose the right path. Discernment Counseling is appropriate for individuals or couples that are: At a standstill in their relationship Unsure whether they can fix their problems On different pages about their marriage Are talking about divorce It’s important to take this step early if you want to save your marriage. Often couples use Discernment Counseling, marriage counseling, and therapy as a last resort and the hurt runs too deep to fix at that point, and there is often too little hope left. Addressing unmet needs and poor communication in a marriage when things are just starting to get off track helps save many marriages. Like a check engine light that comes on in your car, knowing the warning signs of unmet needs and not ignoring them prevents both cars and marriages from falling apart. By going through the process of Discernment Counseling, clients report feeling more sure of their decision to stay or go in their marriage, less guilt, and lower levels of remorse. Couples find that this type of counseling validates their decision and helps them feel more confident about their future. In Colorado, one of the most experienced discernment counseling professionals is Deb Daufeldt of New Chapter Solutions. Deb has used her expertise to help hundreds of clients transition to new chapters of their relationships and lives through her private online counseling practice. If you are ready to learn more about how Discernment Counseling can help you make a decision about your marriage, contact Deb Daufeldt of New Chapter Solutions to learn more about how her work can support your needs through a complementary 20-minute evaluation. Deb often works with the team at A.M. Financial to provide a comprehensive picture of what divorce will look like, from the emotional to the financial side of this life transition. Check out part two of this post where we explore the dynamics of finances in divorce and how they come up in Discernment Counseling sessions.", "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" : "Part 1: What is Discernment Counseling and is it Right for Me?", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-PgVmgw.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/discernment-counseling-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" : "There are so many decisions to make during the divorce process, many of which can impact the course of your life significantly. From the parenting plan you agree upon to how you’ll spend holidays to changes that might impact your job, there is a lot to sort through during this time of transition. One of the biggest decisions you’ll make is around your post-divorce living arrangements and the decision to rent or buy a home. The decision to rent or buy (or even stay in your marital home) will impact your finances at the time of your divorce and for years later. Often, the cost of a mortgage or rent will be the highest bill you pay each month, so it’s important not to take this decision lightly. The current real estate market makes this even more difficult with competitive housing offers and low inventory complicating options. In this post, we discuss the pros and cons of post-divorce living arrangements and what to consider as you finalize your decision. Pros to Renting & Cons to Buying There is no doubt that renting offers you more flexibility than other living arrangements. It’s a short commitment, often at a lower total price point (without a large down payment required). Renting also gives you time and a new space to clearly think about where and how you want to live long-term. In a competitive housing market, renting may be an easier choice, especially if housing inventory is low. Leaving your marital home may have emotional benefits like providing a fresh start with new neighbors and friends. Often there is less maintenance in a rental home, or that maintenance falls on the landlord or homeowner rather than you. This also translates to less post-divorce stress, which can assist in your emotional recovery. Be honest with yourself about the cost of owning a home and consider how much savings you must have for maintenance expenses that come up, beyond your mortgage or rent payments. If your former spouse was the type of partner who could fix anything, it could be a struggle to take care of a home on your own, especially with everything else going on. Financially, mortgage lending requirements may make homeownership out of reach and renting a more attractive option, especially with a single income or lack of past income. If you and your partner had credit issues, this could also make purchasing a home difficult. Lastly, depending on the structure of court-ordered support, qualifying for a loan on your own for the caliber of home you were living in when married could make purchasing the type of home you’d like out of reach. Pros to Buying / Cons to Renting If you are able to purchase a home post-divorce, or anytime, it helps with building equity and on-time mortgage payments help with rebuilding credit. Even purchasing a small home post-divorce can be a great long-term investment and help you rebuild assets. Most homes will appreciate over time, which makes owning property an attractive investment. Purchasing a smaller home post-divorce could eventually convert to a rental home in the future as you continue to accumulate wealth or even get remarried. A new home can also be empowering and give you another reason to work hard at rebuilding yourself financially after a divorce. It can be emotionally liberating to call something your own and navigate the home purchasing decision-making process without your former spouse. Staying in Your Marital Home Another option to consider is staying in your marital home. If you are receiving support, it is vital to determine prior to making final agreements whether you’ll have enough maintenance and/or child support (or other savings) to qualify to keep your home by refinancing (or purchasing a new home) and for additional expenses that will come up. Staying in your marital home is particularly important to consider if you have kids. Kids may benefit from staying in the marital home with one parent for continuity during a time of so much change. However, if the home is a financial burden, the kids will do better in a home without overwhelming financial stress on their parent, allowing the parent to focus their energy on rebuilding a healthy environment overall. One other benefit of staying in the marital home is that there is less change and one less thing to worry about during this time. Divorce is a time full of change, and if that makes you highly anxious, eliminating one major change and staying in your home may help. On the flip side, staying in your marital home, with memories, history, and the same neighbors may make moving on more difficult. If your home is the largest financial asset you own together and you are wishing to keep the home, you may be tempted to offer other assets, such as retirement, cash or stock assets, in exchange for home equity. This may not be the best financial move for you since more money would be tied up in your home versus available for unexpected expenses and could have tax issues to take into account. It is important to understand how a lopsided asset division can affect you long term. Lastly, it’s critical to review future tax consequences of keeping the marital home, especially in a hot real estate market. Many recent divorcees are unknowingly incurring substantial future tax consequences by retaining the home themselves. A financial advisor can review your exact situation and advise accordingly. The decision to buy or rent is often personal, and a financial advisor is your best ally in running scenarios and talking through the best options. It’s important to weigh both the finances and emotional connection to the home (both good and bad) as you arrive at the decision that is best for your family. Everyone feels the financial impact of a divorce and a financial advisor can really help you understand what is best now and for the future. Contact A.M. Financial for a free consultation and learn more about 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" : "Post-Divorce Living Arrangements - Should I Rent or Buy?", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-k7wNP7.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/post-divorce-living-arrangements-rent-or-buy", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Depending on the financial dynamics of your divorce, you may consider whether or not to re-enter the workforce. Maybe you are still in prime working years and you are reentering after being a stay-at-home parent. Or, perhaps you are nearing retirement age but unsure if you will have enough money to retire comfortably and therefore are looking for a lower-commitment job to supplement other savings. Reentering the workforce post-divorce is not a decision to take lightly and there are often strong financial reasons to do so. In this post, we outline four considerations for reentering the workforce and discuss the financial implications of your decision. Identify your network Often, getting a job relies heavily on who you know. This may be even more true if you have been out of the workforce for some time. Identify where you might have colleagues that can support your career ambitions. If your professional network was closely tied to your ex, get involved in professional groups, events, and social media networks to rebuild connections with important professional influencers. As you consider this decision, research market conditions or network with others to understand how competitive the current job market is and whether that will be an added challenge if you have been out of the workforce for some time. In addition, research the state of your industry. Some industries change quickly and you may have to get up to speed through podcasts, events, certifications, or other opportunities. Decide if you are ready If you are in the middle of a difficult divorce with your ex, you may not have the mental capacity to take on a new job successfully. Be honest with yourself if you are in too much transition to take on a new job and choose to delay the decision. Putting together goals or a timeline can be helpful if it is something you think you want to tackle in the future. In other cases, a job may be a positive place to focus your energy and time. Working can provide a distraction or the feeling of moving forward and taking control of your life. In some cases, if there are enough financial resources where needs and obligations are being covered, holding off until support orders are established in your divorce also can help you understand how much money you’ll need to supplement support from your ex. In other circumstances, if support calculations include income for you that you do not yet have (referred to as imputed income), getting a job may not negatively affect your support numbers. In situations like this, the sooner you start making income, the more financial stress will decrease, resulting in more financial flexibility, financial freedom and can build a sense of independence. Always discuss the best approach with your attorney first. Consider roles that complement your lifestyle As a single parent or unmarried individual, you now have a new lifestyle and likely less support post-divorce. Take that into consideration when choosing a new job. For example, if you have part-time parenting duties, taking a job with overnight travel, nighttime hours, or a long commute might not be an option until you are settled into a more regular routine post-divorce. These considerations might change depending on the age of your children. If a new job requires learning a new skill, ask yourself if you have the time and mental bandwidth to do that post-divorce. In some cases, a work-from-home role might be ideal and in other cases, getting out of the house and around others might be a great step for you post-divorce. Evaluate your current skills and experience and consider how you can apply them to a role. You may surprise yourself! Being a full-time parent requires multi-tasking, scheduling, organization, decision-making, leadership, and so many other life skills that are applicable in the workforce. If you are considering going back to school, understand that it is an investment that may require budgeting and sacrifice. Reaching your goals and doing what you love for a living is important, but it is also wise to make sound financial decisions that will pay off in the future. Establish your salary expectations As you consider going back to work, understand what salary ranges you need to achieve the lifestyle you want. Drafting a post-divorce budget is a critical step to understanding your salary needs. In addition, work with your attorney and financial experts to understand how you should receive or pay support agreements and any lump sums you might receive or pay in your divorce. When you are evaluating salary, consider the total compensation package including employee benefits such as health insurance and employer retirement contributions. A position that offers health insurance can save you hundreds of dollars each month. Healing emotionally (and even physically) after divorce is your responsibility and having health insurance coverage will provide you the ability to move forward and heal. Employer retirement contributions are a considerable benefit as one of the most common financial challenges non-working post-divorcees have is the inability to save as finances have become so strained. Many employer retirement plans offer contributions to help you save in addition to your own savings. Understand additional expenses you may take on if you go back to work and add them to your budget. Examples of these include: Clothing Childcare Pet Care Parking Gas Most people decide to reenter the workforce out of financial obligation. Getting clear about whether you need to go back to work based on your divorce agreement and financial goals often takes the help of a financial expert. Have you created a budget to understand your post-divorce financial situation and even used that information to negotiate an ideal division of assets? Contact our team for a free consultation to learn how we can help you understand more about your financial situation and whether you need to reenter the workforce.", "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" : "Reentering the Workforce: 4 Post-Divorce Considerations", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-uCY19b.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/reentering-the-workforce-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" : "While divorce is undoubtedly a highly emotional event with ups and downs to sort through for years, it is also, more logistically, a paperwork-intensive process. After filing, the paper trail of your divorce begins with a sworn financial statement, which is a mandatory financial disclosure required by the state that details your income, expenses, assets, debts, and some of your financial history. This multi-page document, submitted with evidence of the details, is provided not only to the court but also to your former spouse. In Colorado, it is also referred to as your 16.2 mandatory disclosures. Many clients find this document extremely confusing. In this post, we hope to provide an overview of the purpose of the Sworn Financial Statement and tips to make it easier for you to complete it accurately. Understand the Goal The goal of the Sworn Financial Statement is honesty and transparency, both for your current and projected future situation, whereas after completion, settlement proposals can begin. The forms should not be completed with any motive in mind, including showing that you can balance your finances without a negative cash flow. You also should not inflate your expenses to an unreasonable level, hide income, or manipulate any of the figures. Do not feel the need to showcase that you are a financially responsible person through this statement either as if it is not true, it could end up hurting you more post-divorce. Focus on disclosing everything in the most honest way possible, despite financial changes that are unfolding. At any time, you can amend your Sworn Financial statement or correct details. This is particularly important if you expect changes to your career or living expenses as your divorce unfolds. In the event of a long divorce process, changes will inevitably occur. Is a Divorce in Your Future? Get Prepared with These Essential Tips. From the court and attorney’s perspective, this document will provide the basis to determine 1.) any financial needs from either spouse as well as 2.) the ability to provide a spousal support obligation. In Colorado, the case for spousal support starts with a calculation; however, the case can be continued to be argued based on the Sworn Financial Statement. Adhering to honesty and transparency and following these suggestions regarding your current and future situation will increase your credibility, not to mention possibly decrease your legal fees (less billable hours when attorneys don’t have to request items left out or argue over reasonableness). Sworn Financial Statements that are thorough and well documented will decrease the risk of post-decree litigation where one spouse argues something wasn’t addressed properly or missed altogether. Begin by Organizing Like any kind of large financial review, such as filing taxes, having your information organized and accessible makes the process of completing the Sworn Financial Statement smoother. Begin by reviewing your bank information and credit card statements. If you sign up for a service like Quicken or Mint, you can download all your transactions and create reports to learn exactly how much money is being spent in various categories. Some banks, such as Chase, provide this level of detail directly in your accounts. If you work several jobs or receive bonuses, this information will also help you understand where your income is originating, how often and help with averaging income over various periods of time. Looking at the big picture in this way will help you understand your overarching financial situation before you begin diving into the details of a possible settlement. Complete the Sworn Financial Statement Here is what to consider as you complete each section. Report Monthly Amount (sections 1-3) In these sections, income and expenses should be reported as monthly amounts. If the item occurs more or less than monthly, it is worth noting the frequency of the income and expenses. Here are some other important details: Income (Section 1): If you have unsteady or contractor income, average your income monthly by taking your total income for the year and dividing by 12. Include a note stating that the figure you provided is an average during the specific time period. Payroll frequency (section 1and 2): Pay special attention to reporting income, monthly deductions, tax deductions, and other payroll deductions properly. For example, there is a significant difference between income reported from bi-monthly payroll (where you multiply your paychecks by two) or bi-weekly payroll (where you multiply your paychecks by 26 and divide by 12). Social Security withholding (section 2): There is a maximum social security withholding amount each year. The timing of the payroll stubs being used to calculate this withholding may be misleading and lead to a significant difference in what is actually being withheld for the full year. For instance, there could be a large portion of the year that this withholding is not being taken out at all. A Certified Divorce Financial Analyst (CDFA) can help you determine if it is being reported correctly on you and/or your spouse’s Sworn Financial Statement. Expenses (section 3): Complete this section based on your current situation. Sometimes, this is difficult for individuals to accurately complete depending on their living situation and because they anticipate so many possible future changes. For future anticipated changes, small notes can be added under each expense headline with an asterisk where you can report how much the expense will be in the future and when. For instance, if you anticipate that you’ll be moving out of your marital home and renting a house for $2500 a month post-divorce, you can add that projected expense with an asterisk and site when it will occur. Common expenses that change are mortgage or rent, health insurance, car insurance, cell phone expenses, food, therapy, and car expenses. If you have not worked outside the home or in a full-time role in several years, it may be reasonable to add an expense for saving for retirement. Other items that will change are your tax withholdings that are listed in Section 2 – a CDFA will help you estimate how they will change in your future budget. This is another reason why the Sworn Financial Statement is not a reliable source to build a future budget as taxes can make a big difference. Lastly, many individuals struggle how to document an expense that is paid by both parties If this is the case, make a note with an asterisk detailing whether you are listing the full amount that is shared or only the amount you currently pay for. Disclosing this level of detail creates transparency, which will be favorable to the courts. Debts and Assets (sections 4-5) Regardless of whose name is on the property (debt or asset), it is prudent to document the item on your Sworn Financial Statement. Debts (section 4): Even if an account has a zero balance, disclose the account. All accounts need to be tracked throughout the process in case of future transactions, and for your protection. Running a credit report for you and your spouse to make sure this section is thoroughly addressed is prudent and recommended. Again, transparency is key when it comes to debts. As noted on the form, the court wants to see the minimum payment on the debt, not the actual payment made. This reinforces the need to complete a separate financial cash flow worksheet with a financial advisor as the Sworn Financial Statement is not reliable for actual and future cash flow and budget planning. Assets (Section 5): If you are having a hard time finding documentation of your assets, list the item and note that documentation is pending. Sometimes you aren’t aware of all the details of your assets. If you have heard your spouse talk about an asset but have not seen documentation, list it and request the required documentation. Household items (including jewelry, art, firearms, tools, furniture, etc) can be listed out separately or lumped together as a large sum. If there are items in particular that you want to be addressed in the division, list the item separately. This may apply to items of high value or sentimental value. When detailing the value, use “undetermined” or the expected sale price you would expect in a second-hand transaction (not the value of the item new). Miscellaneous Assets (section 5H): To complete this section, go through the list of potential miscellaneous items and check the box if you think you have any that fall into this category. If you are unsure of the value of these assets, your attorney or other advisors can help you or you can list the value as unknown or TBD. These items can be substantial, so do not skip over these or take this section lightly. Separate Property (Section 5I): This section includes assets brought into the marriage, gifted or inherited to an individual and kept as separate property. Some of these items may need to be reported in other asset sections like retirement accounts (inherited IRAs), investment accounts, real estate sections, childrens’ assets, and more. When you report these assets in Section 5, provide the total value (including separate value and marital value) and in the note section, report the separate value (which is the value at the time the item was brought into marriage or received), if known. If separate value is not know yet, update to unknown or TBD and your professional team will help determine the appropriate value.. If you have been married for a long time or have been hands-off with the finances in your marriage, you may not have all the information you need to complete this statement or even have access to all your accounts. Do your best to estimate based on what you do know and make a note that some line items are estimates and you are awaiting documentation. Include items such as account names if you know an account exists and leave the value blank adding a note that documentation is pending. If you are on account titles, you can request statements from the institution. Otherwise, your spouse will be required by the court to provide the documentation you need to complete the information. All information must be disclosed before moving into property division discussions. Plan Your Budget Because there is so much change involved with the Sworn Financial Statement, we do not recommend using this document for future cash flow planning or budgeting – this fact creates tremendous turmoil with many clients who are attempting to complete it and use it as such. Create a new budget exclusively for this purpose or create a few options with different scenarios, such as what your financial situation would look like if you keep the house versus rent an apartment. At A.M Financial, we can help you project different financial situations based on different living arrangements, incomes, settlement strategies, and more. We also support clients when completing sworn financial statements and answer your top financial questions throughout the divorce process. Contact us for a free consultation and get started with the financial planning you need to meet your obligations of today and goals of tomorrow.", "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" : "Sworn Financial Statement: An Explanation of How to Complete", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-7puIjL.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/sworn-financial-statement", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "In working with clients throughout Colorado, many divorced women do not save much for retirement. This is especially true if 100% of their income is coming from maintenance payments. It’s important to consider how to prioritize saving for retirement despite competing priorities in your budget. In this post, you can learn why this happens and what you can do about saving for retirement after your divorce. Gender Income Gap One challenging aspect of saving for retirement for women is in a large part due to gender income gap issues. Traditional dynamics contribute to this reality, including lower pay for women, women having less financial knowledge, women needing more time away from work caring for family, divorced women financially providing for family, not receiving court awards or agreed upon shared expenses for children, and more. There are simply not enough finances to properly prioritize saving for retirement. It is extremely important to be aware of this challenge when 1.) negotiating asset division during your divorce and 2.) creating a future savings plan even if it means starting small. Putting off addressing this reality could mean working many more years than you would like or other undesirable outcomes. When you come up with a plan to save incrementally, your retirement savings can quickly add up. Prioritizing Children and Family If you are divorced and also a mother, your financial obligations to them may impact your ability to save for retirement. You may be overly taking care of your children and family’s financial needs to your own detriment. Some parties don’t help financially, even if they are under court order or if they do, do not comply fully with financial agreements, or don’t reimburse costs on time or at all. They may not agree that the child should receive medical care, go to day camp, play hockey, get a tutor, or attend counseling, for example. In which case, in a joint decision-making scenario, if the other party wants the child to participate in these activities, the financial responsibility falls on that party (often the mother). Getting retirement assets in your divorce For retirement planning, it’s critical to receive an equal portion of retirement assets in your divorce, even if you feel that getting the home or other cash options are better for you in the short term. You should push to receive at least 50% of the retirement assets in your divorce to lessen future savings needs that will be required. Even if you feel other assets are a priority at the moment, consider the long-term. Of course, it is difficult to save and when you’re in the thick of it, it is hard to see how important this is. Work with a financial specialist to model and project whether 50% of the retirement assets in your divorce can grow and mature into enough money for retirement, or if you may have to consider returning to work to supplement your income. When you consider your entire savings plan, take your own long-term needs into account alongside those of your children and family. Work with a financial expert to design a retirement savings strategy and budget that works for your unique situation. If you prioritize this now, know that there are substantial compounding effects over time. Contact Amy Mahlen of A.M. Financial to learn more about 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" : "Saving for Retirement after Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-U2oRxV.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/retirement-after-divorce", "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 going through a divorce, one of the top questions likely on your mind is what to do with your marital home. This decision has financial, emotional, educational, and even social implications. Market conditions and current real estate dynamics can also play into how you divide your home. Recently, we talked with a Denver real estate expert, Shirley Jenkins, to get some insights on handling real estate during a divorce. In this post, Shirley outlines four considerations to keep in mind when weighing the pros and cons of selling your marital home. Financial Considerations First and foremost, either party who wishes to keep the marital home should meet with a financial specialist to understand whether financing the home on their own is an option. A financial advisor or lender can help you understand your bottom line numbers, determine whether you have sufficient assets, and help you understand the tax consequences of selling versus keeping your marital home. Regardless of what you decide to do with the home, recognize how important it is to meet with experts who will prevent you from making decisions based on emotions. Instead, experts ranging from financial advisors to tax specialists to mortgage lenders will give you facts and objective opinions based on numbers. A financial advisor or certified financial divorce analyst can help you understand whether you can afford your home right now. They can also help connect with experts who can pre-qualify you for another home purchase if you want to see what options are out there. However, many lenders will pre-qualify you at the top of your range and underestimate the additional expenses of owning a home, including maintenance costs and taxes. Right now, many people buy a home over the list price based on appraisals of recent sales in the neighborhood, and many homes are currently overvalued. These dynamics lead to higher tax bills because taxes are based on your assessment value. Therefore, if you end up buying a new home, and buying high, you will have to pay significantly more on taxes than you likely planned for when you were prequalified for your home loan. This, combined with common job changes during a divorce and current market declines can inflate your overall home costs even more. Emotional Considerations Once you understand whether you have the financial means to keep your marital home, it’s time to consider the emotional element of this decision. Ask yourself whether you want the home and the memories that go along with it. Some divorcing couples tend to relive those memories again, ranging from good memories of bringing your kids home from the hospital as newborns to remembering rooms where heated arguments occurred during the marriage. Sometimes, a divorce is a great time for a fresh start and it is in your emotional best interest to detach from that part of your previous life. No matter what you decide about the emotional aspects of the home, once you decide you want to sell it, it’s important to make a mental transition into seeing your home as real estate without the emotional attachment of the memories. You can take the memories with you, but decoupling the emotions from your home will make the sale easier. Timing Because market uncertainty, lending options, and even the age of your children are important considerations in selling a home (and purchasing a new one), it’s critical to consider timing as an element of this decision. For example, you may have a child with special needs or a particular attachment to a school that would make it extra difficult to move out of the neighborhood. You may be facing economic conditions that make it difficult to get a reasonable loan or are in-between jobs, which could make it nearly impossible to qualify for the size of mortgage you need. Notice how the particular timing of this situation impacts your decision to sell now, sell later, or keep the marital home. Option to Rent Sometimes, selling your marital home and renting is a great option, especially if you are in a situation where you could lose money keeping your home. While real estate is one of the best investments you can make, you generally have to hold onto the property for 7-10 years to get a good return on your investment. While rent can never be recouped, you don’t lose money when you rent either. In the current market, rent prices will continue to go up significantly, at least for the next 18 months. Paying rent each month means less money in your bank account for a downpayment for a house you own. Once again, get input from realtors, lenders, trusted friends, and people working on your divorce team who are experts in their field. Listen to their advice rather than make decisions based on emotion. Taking the next step in the process of selling or keeping your marital home as part of a larger division of assets isn’t simple. There are a variety of factors to consider and Amy Mahlen of A.M. Financial can support your decision by providing insight into the financial aspects of this decision. If you have additional questions about the Denver real estate market and what to expect from the current market dynamics, contact Shirley Jenkins to learn more.", "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" : "What should we do with the home in our divorce?", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-QV5ycb.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/home-in-divorce", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ```