--- title: Our Blog - AMF Divorce (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) # Our Blog ### Browse By: Everything Divorce Finances Planning Divorce Budgeting Financial Planning Budgeting Taxes Retirement Accounts Assets Divorce Options and Methods Maintenance Child Support Investments Retirement Property Real Estate Spousal Support Emotions Family Property Division Mediation Separation Co-Parenting Coaching Court Estate Planning Kids Retirement Planning Tips Counseling Home Interest Rates Lawyer Mediator CFI College Do It Yourself Gifts Healthcare Inflation Insurance Litigation PRE Remarriage Stock Stock Market Transfers Travel This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. ## [Building Your Relationship With Money](https://amf-divorce.com/our-blog/building-your-relationship-with-money) March 07, 2023 You manage many relationships in your life with the things and people most important to you. Some of those relationships might be difficult, especially with family members or ex partners. Others... [CONTINUE READING](https://amf-divorce.com/our-blog/building-your-relationship-with-money) ## [Converting Rental Property to a Primary Residence: Property Division in Divorce, Part 4](https://amf-divorce.com/our-blog/converting-rental-property-to-a-primary-residence-property-division-in-divorce-part-4) March 05, 2023 When dividing assets in divorce most people, individuals, mediators and attorneys alike, tend to focus on the property division spreadsheet. Current values of assets are listed along with... [CONTINUE READING](https://amf-divorce.com/our-blog/converting-rental-property-to-a-primary-residence-property-division-in-divorce-part-4) ## [Financial Resources for Women](https://amf-divorce.com/our-blog/financial-resources-women) March 01, 2023 There is no shortage of financial resources available online. With so many websites and events to sort through, it can be challenging to consult and trust the right resources. Educating yourself... [CONTINUE READING](https://amf-divorce.com/our-blog/financial-resources-women) ## [Understanding Pension Plans in Your Divorce](https://amf-divorce.com/our-blog/understanding-pension-plans-in-your-divorce) March 01, 2023 If there wasn’t enough to sort through, employer pension plans can be a particularly confusing aspect of dividing your assets in a divorce. From decoding what pension plans truly are to... [CONTINUE READING](https://amf-divorce.com/our-blog/understanding-pension-plans-in-your-divorce) ## [Colorado Health Insurance and Your Divorce: Your Top 8 Questions, Answered](https://amf-divorce.com/our-blog/colorado-health-insurance-and-your-divorce-your-top-8-questions-answered) February 15, 2023 Sorting through the details of your divorce can be overwhelming at a time when [so much is changing](https://mahlenfinancial.com/divorce-a-catalyst-for-change/) in your life. It’s critical to work with [experts](https://mahlenfinancial.com/divorce-professionals-mahlen-financial/) who can help you sort through decisions ranging... [CONTINUE READING](https://amf-divorce.com/our-blog/colorado-health-insurance-and-your-divorce-your-top-8-questions-answered) ## [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) ## [7 Tips if a Divorce is on the Horizon](https://amf-divorce.com/our-blog/7-tips-if-a-divorce-is-on-the-horizon) February 07, 2023 **What do you need to know if a divorce is possible in your future?  Regardless of which path your relationship goes, here are seven helpful tips to be aware of:** **1. Seek the RIGHT Advice for YOU** ... [CONTINUE READING](https://amf-divorce.com/our-blog/7-tips-if-a-divorce-is-on-the-horizon) ## [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) ## [Stress Testing a Budget in Divorce](https://amf-divorce.com/our-blog/stress-testing-a-budget-in-divorce) January 14, 2023 Transitioning financially through divorce has many moving parts. Stress testing your strategy regarding how income and expenses can change your circumstances in the future is important to consider.... [CONTINUE READING](https://amf-divorce.com/our-blog/stress-testing-a-budget-in-divorce) - - [5](https://amf-divorce.com/our-blog/page/5) - [6](https://amf-divorce.com/our-blog/page/6) - [7](https://amf-divorce.com/our-blog/page/7) - [8](https://amf-divorce.com/our-blog/page/8) - [9](https://amf-divorce.com/our-blog/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" : "You manage many relationships in your life with the things and people most important to you. Some of those relationships might be difficult, especially with family members or ex partners. Others may be relationships filled with joy and fulfillment. However, it’s possible you’ve never considered the “relationship” you have with money. Since money is essential to all aspects of your life, creating a healthy relationship with it is critical to your well-being. There is no better time to examine your relationship with money than during a divorce. This challenging life event can also be a great catalyst for change, and facilitate the right environment to understand, improve, and reimage your financial goals. In this post, we explore how to build a healthy relationship with money. We’ll outline considerations and steps you can take to build awareness around and improve your relationship with money. Understand your relationship with money Before you can improve your relationship with money, it’s important to understand why and how you currently relate to money. Your approach to money has likely been influenced by factors such as your family, culture, religion, location, gender, social status, and education. As you reflect on these aspects of your past, notice which ones may be most prevalent in your views of spending, saving, and budgeting. As you examine the factors that have influenced your perspective around money, notice what emotions come up when you think or talk about money. Do you feel excitement, anxiety, uncertainty, fear, or other feelings? Examine how these reactions might be tied back to your major influences around money. For example, if you grew up in a single-parent household where money was tight and in a social setting where money was important, you might never feel like you have enough money and experience feelings of anxiety and scarcity when you think about money, no matter how well you manage your finances. Lastly, relationship attachment styles can provide interesting insights into money management philosophies. You might find some similarities between the way you approach any relationship in your life and the way you manage your money. The three major types of attachment in relationships are anxious, avoidant, and secure. If you have an anxious attachment style, you may find yourself more reluctant to engage in your finances and hesitant to do things like create and manage a budget. If you are more anxious about money (and relationships), you may be hypervigilant about your spending and savings and over-engage in budgeting activities. In secure relationships with money, you likely spend an appropriate amount of time focused on money management, are saving appropriately, and have accepted that finances will fluctuate moderately. Take care of your foundational needs Maslow’s hierarchy of needs is a great example of how to build your financial foundation. Just like this famous survival pyramid, you have to take care of and budget for your basic needs first before considering more complex spending and savings needs. For example, only after your prioirize your monthly mortgage, electric bill, cell phone payments, gas, insurance, and other necessary payments, can you consider how you might budget for an upcoming vacation. You can’t plan for higher-level needs and budget items that lead to higher-level happiness and fulfilment unless your basic needs are met. When you build your budget from your foundational needs, you have the opportunity to examine what brings you joy and fulfilment, which you can build into tier two of your budget. Spend time with your finances Just like good relationships are built on shared, quality time, it’s important to prioritize time with your finances to cultivate a healthier relationship with them. Start small with a few minutes a day in which you review your spending, categorize your spending, and understand key patterns in the way you save and spend money. Apps such as Mint and Google Sheets can help you organize your spending and your credit card company may even have these tools built into your spending summary. As you get more comfortable regularly reviewing your spending and identifying opportunities to improve, dedicate a longer stretch of time each weekend to your finances and spend time reviewing what is working and what needs improvement. These review periods are also a great time to check in with your emotions around money. When your spending is in alignment with your values, you’ll feel less anxious about money and more confident about your spending and saving patterns. Create healthy boundaries Like any relationship in life, you have to create boundaries to keep the dynamics of a relationship healthy. In the case of money, you must declare the boundaries you want to have with your money. This might look like setting limits to your spending and even defining consequences if you don’t adhere to these limits (such as cutting back your unnecessary spending in key areas). Similarly, you might reward yourself with a spa day or other memorable experience if you do manage to maintain healthy boundaries with money. Spend time reflecting on your current and desired boundaries regularly and adjust as your relationship with money evolves and progresses. In order to have a healthy relationship with money, you have to understand your origins and beliefs around money, focus on your financial foundation, spend time reviewing your day-to-day spending, and create boundaries to ensure your success. At A.M. Financial, we can assist you in this process by providing various services to support your financial journey. Learn more in a free consultation.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "07/03/2023", "datePublished" : "07/03/2023", "headline" : "Building Your Relationship With Money", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-uhWlNr.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/building-your-relationship-with-money", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "When dividing assets in divorce most people, individuals, mediators and attorneys alike, tend to focus on the property division spreadsheet. Current values of assets are listed along with outstanding debt balances that are deemed to be marital. Typically, above all else, the focus and end goal is to split property 50-50. With so much emphasis on this spreadsheet that dictates the remainder of your financial future, is there anything missing that could dramatically change your post-divorce expectations? One of the first initial complications of divorce is altering living arrangements. Planning for this change usually creates strain on the budget and tension within how the family will operate in two homes. Divorce proceedings may have already began or the process is nearing which creates more stress and demands. Moving into a rental property that the couple owns may seem like an easy answer for solving these overwhelming living arrangement issues. However, converting rental property to a primary residence can cause significant tax complications down the road that weren’t anticipated or discussed during a dissolution of marriage. Be cautious of what might be missing! Capital Gains Tax Capital gains are assessed when a property is sold, whether the property is real property, a personal residence or combination as discussed in the previous article in this series, Property Division in Divorce Part 3: Home Equity (click here to read). Individuals or couples that have owned and been living in the home for two out of the last five years can offset gains by utilizing the primary home exclusion of up to $250,000 for individuals or $500,000 for married filing joint couples. However, The Housing Assistance Tax Act of 2008 has complicated the exclusion for property that has been used as both a primary residence and a rental property. In cases where the property has been rented out after 2009, not all of the gains associated with the property can be offset with the above exclusions even if the ownership and living requirements have been met. With the tremendous real estate growth that has been experienced in the Denver market this past decade, it is imperative to understand how much of the capital gains can be sheltered with the primary residence exclusion and if there are any amounts that will be exempt. Depreciation Recapture If the property has at anytime been rented to tenets, most likely depreciation occured. Owners depreciate assets such as rental property because it will lower income taxes and help offset rental income. Depreciation can not be offset by a primary residence capital gain exclusion which was discussed above. Therefore, any amount depreciated while holding the property will be subject to 25% depreciation recapture tax. Conclusion Making the decision of moving into a rental property that you own can be more complex then what it may seem on the surface with unique tax issues involved. The value of these properties on the property division spreadsheet may not always be of the same value down the road after taxes have been evaluated. Be sure to consider all the financial components of your divorce transition; how they affect your priorities and long-term financial situation. Financial education, analysis and proper planning before signing the final papers is more important than ever to build a strong foundation for the next chapter in life. Let’s build a property division strategy that works best for your future! You wouldn’t retire without a financial plan… it might be messy! Don’t divorce without one either! Get the information you need to get started here, or Click here to schedule a free initial consultation with Amy", "author" : { "@type" : "Person", "name" : "max.melomed@gmail.com", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/max-melomedgmail-com" }, "dateModified" : "05/03/2023", "datePublished" : "05/03/2023", "headline" : "Converting Rental Property to a Primary Residence: Property Division in Divorce, Part 4", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/c38cd71759f744e1a7ec2d10871410da.webp", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/converting-rental-property-to-a-primary-residence-property-division-in-divorce-part-4", "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 no shortage of financial resources available online. With so many websites and events to sort through, it can be challenging to consult and trust the right resources. Educating yourself through the blogs, articles, books, events, tools, and even podcasts available is key to ensuring you are getting sound advice to meet your goals. In this post, we detail top resources you can consult to educate yourself about your finances and keep up on any market changes that might impact them. Incorporate these resources into your financial planning by committing to exploring one resource per week, or contact us to learn which resources best align with your needs and goals. Books Your Money or Your Life Your Money or Your Life details nine steps you can take to transform your relationship with money. The book details ways to achieve financial independence no matter your age. It covers topics like investing in index funds, managing side hustle revenue streams, getting out of debt, developing savings, using online finance tracking, and navigating difficult conversations about money. Prince Charming Isn’t Coming Prince Charming Isn’t Coming is a book geared toward women who want to get smart about their money and take control of their finances. The author uses real-life success stories and modern advice to inspire you to move from fearful to confident when it comes to managing your money. Money: A love story Money: A love story is about creating the financial life you want by understanding the dynamics of your relationship with money. Complete with a quiz and interactive exercises that help you understand your personal perceptions of money and wealth, you’ll be empowered to change them for the better. My Money My Way My Money My Way is about taking back control of your financial life. Through the author’s personal story about overcoming debt, she’ll remind you that money problems are often rooted in other dynamics, such as self-doubt, shame, guilt, and societal pressure. By reversing negative thinking patterns while aligning with goals, her lessons help you reimagine your life by channelling emotions into financial advantage. On My Own Two Feet On My Own Two Feet helps you understand basic principles of money management to free yourself from financial stress. A practical guide to everything from your daily budget to saving for big-ticket items, the concepts in this book have been featured in the Wall Street Journal, Forbes, and The Huffington Post. Workbooks The Financial Recover Workbook The Financial Recovery Workbook is a step-by-step guide for regaining control of your money, and your life, during and after a personal financial crisis. The guidance and reassurance in this workbook help you get a handle on your spending to get your finances back on track through understanding how to prioritize bills, use credit cards, and reallocate funds to change your relationship with money for good. The Financial Anxiety Solution The Financial Anxiety Solution is a step-by-step workbook to help you stop worrying about money and live a happier life. This interactive guide can help you overcome financial anxiety and achieve financial freedom. The tools help you understand money anxiety coping skills, address pain points of financial stress, and develop money-management techniques that can help you better understand and overcome financial anxiety. The Financial Planning Workbook The Financial Planning Workbook helps you build a successful financial plan with a wealth of resources to manage investments, plan your retirement, document your income, understand cash flow, choose insurance, complete dependent planning, and start estate planning. Through goal setting, analysis, defining strategies, and developing your unique plan, this workbook provides the tools to build a strong financial foundation. Podcasts Women and Money Women and Money helps you become the master of your own financial destiny to live a full and meaningful life. Through personal, entertaining stories and 35 years of experience teaching financial principles, the host answers top financial questions with actionable advice. Her Money Her Money recognizes how women are different when it comes to money. Covering topics from fighting fair with your partner when it comes to money, to career and tax advice, this podcast is a judgement-free zone focused on changing your relationship with money. So Money So Money shares inspiring money strategies and stories from today’s financial leaders, authors, and entrepreneurs. This podcast is dedicated to answering your pressing financial questions about saving, investing, and building wealth through a lens of equity, inclusivity and the changing world we live in. Clever Girls Know Clever Girls Know empowers women to ditch debt, save money, and build real wealth in order to live life fully. The podcast shares open and honest conversations with real women at different stages of their financial and life journeys to inspire and motivate other women on their own financial journeys. More Money More Money guides you on your personal finance journey through stories, expertise, and wisdom. With advice from top personal finance and business experts, celebrities, entrepreneurs, authors, and influencers, this podcast helps simplify and demystify the “complex” world of money. Blogs Mixed Up Money Mixed Up Money is both a blog and community all about personal finance and money decisions, but without any of the complex jargon and numbers. This blog will remind you that having wealth isn’t about the money, but about the power of choice Women’s Institute for Financial Education Women’s Institute for Financial Education or WIFE is the oldest non-profit organization dedicated to providing financial education to women in their quest for financial independence. This blog will remind you that a man is not a financial plan and instead help you understand how to take control of your own financial future. Ms. Money Ms. Money is a blog dedicated to helping you spend, save, and invest your money aligned with your values and the global community. Featuring 20 women personal finance experts, this blog offers thousands of pages of premier educational content around women and money. A.M. Financial Bookmark our blog so you never miss an article. We publish articles a few times a month to help you better manage your finances during and after a divorce. From the impact of current events and market conditions, to how the dynamics of your divorce will impact your finances, our blog answers your top divorce questions. Budget Applications Google Google offers a number of free add-ons that allow you to use Google Sheets as a budgeting application. You can set up categories/subcategories for income and expenses, then enter your transactions daily or weekly. Analyze your expenses by category and compare them to your budget. The summary tab will give you the year in review to see how you are tracking against your overall annual budget. MINT Mint is a free money management app and financial tracker that brings together all of your finances. View paychecks, debts, transactions, and credit card payments automatically, when you sync your bank information. This application allows you to set budgets based on your spending and savings goals and track your progress toward those goals each month. If you are just starting to track your spending, begin by spending just five minutes each morning reviewing your spending, budget, and how you are tracking toward your goals. Denver Groups BLOOM BLOOM is a free monthly gathering of divorced women in south Denver. This group offers events that provide both education and discussion around your top financial questions. All events are free and led by Amy Mahlen, CFP®, CDFA® and independent wealth manager While resources can certainly steer you in the right direction when it comes to managing your finances, there is no substitute for highly cusotmized and personalized advice from a professional. At A.M. Financial, we provide guidance post-divorce and during all phases of your financial journey. Contact us to learn more about our services.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "01/03/2023", "datePublished" : "01/03/2023", "headline" : "Financial Resources for Women", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-bqch7i.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/financial-resources-women", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "If there wasn’t enough to sort through, employer pension plans can be a particularly confusing aspect of dividing your assets in a divorce. From decoding what pension plans truly are to understanding whether you need a valuation for one that you or your ex-spouse has, takes the expertise of a professional. In this post, we help answer your top questions about how to handle a pension plan in your divorce. What is a pension plan? A pension plan is a type of employee retirement benefit plan. More common nowadays in public sector jobs, a pension provides eligible employees with a promise to pay future income streams (monthly) upon retirement. A pension plan can be provided to employees as the sole employer retirement plan or in addition to other saving plans such as a 401k, 457 plan, etc where the employee can elect to contribute and to what amount. A pension is funded by employer contributions into a pool of money that is set aside to fund future payments to retired employees. Employees must meet eligibility requirements to qualify for future benefits which is determined by a formula based on the employee’s years of service and their compensation over time. Pension benefits are paid out at retirement and the money is available to employees after reaching a certain age such as 60, 62 or 65. Payments received are taxable unless a lump sum of the benefits are rolled into an IRA. Retirees will receive monthly payments for the rest of their life. Therefore, the value of what a retiree will receive over their lifetime is unknown, not to mention the value of what it is worth currently and in a divorce proceeding. How are pensions paid out? Pensions can be paid out in one of two ways. Retirees can choose either monthly payments over a lifetime or a lump sum at retirement. For monthly payments, amounts are modified based on whose lifetime the payments cover. Those options include retiree only, retiree and spouse, and other predefined payout options. Lump sums can be rolled directly into an IRA account where funds can be accessed based on IRA rules. This is common for tax, investment budgeting reasons. However, unlike more traditional retirement options, like 401Ks and IRAs, pension benefits are usually not accessible prior to retirement What is a Valuation and when is one necessary? Retirement accounts are often a complex part of asset division, and pensions fall into that category. Unlike a 401k account that has a stated current value, a pension that provides funds over a lifetime does not have an exact value as of today. This is because of the way pensions are paid out. For example, someone may die and only receive benefits for five years while another retiree may live longer and receive more payments. Therefore, it is difficult to determine the value of a pension when calculated for the purposes of divorce. It is essential to have a professional help with a pension valuation, which determines the separate value and marital value of the pension for proper division. Like other assets, if you or your spouse earned future pension benefits during your marriage, it is usually considered marital property. Benefits accrued before your marriage or after your divorce would be separate property. In order to complete a valuation and understand the current pension value pertaining to a divorce, a valuation expert will take various factors into consideration to determine the value of your pension, including: Valuation date or the date in which the plan is valued for divorce division Average lifetime expectancy (states have different statutory guidelines) Date of the marriage Date of hire Date of employment termination (if applicable) This information will help determine what percentage of the pension value is marital. Valuations are extremely important if assets will be ‘offset’ in your division, which is fairly common. For instance, you may want to stay in the marital home and therefore your ex-spouse may receive more of another asset, like a pension, to offset the value of your home. A valuation helps you value, compare, and accurately divide assets. If you are the non-employee spouse and expect to receive future benefits as an agreement in your divorce, it is crucial to work with a Certified Divorce Financial Analyst (CDFA) to understand and plan for other complexities regarding the timing of your pension payments. For example, you may not want to wait until your ex retires in order to withdraw funds from the pension. In another important scenario, you will want to make sure you can continue to receive pension payments in the event of your ex-spouse’s death, instead of those payments ceasing due to your ex spouse’s death (usually by executing a QDRO or DRO). Lastly, if you or your ex-spouse already receives pension benefit payments, a valuation is typically not needed. Also, if a pension is going to be split 50/50 between spouses, a valuation may not be necessary. Once valuation and division agreements are complete, you must file a qualified domestic relations order (QDRO) to receive the payment benefits from a pension. In order to successfully divide a pension, work with a CDFA who can help you understand your pension valuation and division options as part of dividing your overall assets. At A.M. Financial, we can complete pension valuations for your divorce case. Pensions contain a critical part of your future earnings and can often be a very large percentage of a couple’s total assets. It’s critical not to underestimate a pension’s value. In some cases, they can be worth as much as or more than your home. As you fully understand your pension plans, you can divide them in ways that help you meet your future financial goals. Contact us to learn more.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "01/03/2023", "datePublished" : "01/03/2023", "headline" : "Understanding Pension Plans in Your Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-Re0BoV.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/understanding-pension-plans-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" : "Sorting through the details of your divorce can be overwhelming at a time when so much is changing in your life. It’s critical to work with experts who can help you sort through decisions ranging from health care options to whether you should rent or buy a home. When it comes to health insurance, we’ve put together a list of top questions many divorcees ask when sorting through how to manage coverage post-divorce. Always consult with a local specialist in your area for questions that might be unique to your situation Can I cancel my spouse’s health insurance on my group plan? You can only remove your spouse from your health insurance once your divorce is finalized. If you have a mutual agreement in place prior to that time, you may remove them in accordance with that mutual agreement. Can I stay on my spouse’s plan if we agree to those terms in our decree? In Colorado, and all other states across the country, an employer will no longer cover an employee’s ex spouse after the divorce agreement has been finalized. Some plans may allow for employees to keep spouses on their plans who are legally separated and not divorced. In these incidences, check with your HR or benefits department. What are my health insurance options after divorce? Most individuals have three main healthcare options post-divorce: 1. A group policy through employment benefits is usually the best option because cost and premiums are typically shared with an employer. Therefore, they are substantially less expensive. Self-employed individuals can qualify for a group policy even if they have no employees. 2. The open marketplace can sometimes provide competitive options. In Colorado, you can review those options at Connect for Health. 3. COBRA includes a limited continuation of current coverage through the previous spouse’s health plan. This is typically the most expensive option. How much will insurance cost on the open marketplace? The cost depends on your income, family size, plan type, and the coverage options. You can explore plans here. Your options also depend on your health insurance risk tolerance. You may decide to risk more with a higher deductible plan if you are healthy, or have more cash available to you in case of a healthcare emergency. You may want to play it safe and choose a lower deductible plan if you anticipate a lot of healthcare expenses this year. The cost depends on your income, family size, plan type, and the coverage options. You can explore plans here. Your options also depend on your health insurance risk tolerance. You may decide to risk more with a higher deductible plan if you are healthy, or have more cash available to you in case of a healthcare emergency. You may want to play it safe and choose a lower deductible plan if you anticipate a lot of healthcare expenses this year. How much does COBRA cost? COBRA tends to be the most expensive insurance option but it also guarantees the continuation of care with current providers and healthcare benefits. Usually, the recipient of COBRA pays the entire premium amount, which is the total of the employer’s and employee’s share. How long does COBRA last? COBRA can last up to 36 months (3 years) when it’s available due to divorce When should I sign up for COBRA? You have 60 days to enroll in COBRA from the time the plan administrator notifies you of the COBRA coverage availability. When can I get a new health insurance plan? If you are obtaining a new plan through your employer, you are eligible for a new group plan based on your company’s policy. Because divorce is considered a qualifying life event, such conditions allow you to change insurance mid-year or outside a designated enrollment period. If you are choosing the open marketplace, you have 60 days to enroll once your divorce is finalized. If you fail to act during that window, you must wait until the traditional open enrollment period, which is November 1st through January 15th each year. Health insurance questions are one of the many categories of questions you’ll have as you make changes in your life post-divorce. Working the cost of insurance into your budget is critical to success post-divorce. This expense should be considered while working through divorce negotiations because it can represent a substantial need. Lean on a team of experts to help you make important healthcare insurance decisions, or take advantage of free resources related to health insurance, which can set you up for success. Discuss possible tax breaks with these advisors, which might be available based on the type of play you chose.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "15/02/2023", "datePublished" : "15/02/2023", "headline" : "Colorado Health Insurance and Your Divorce: Your Top 8 Questions, Answered", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-xUH0O4.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/colorado-health-insurance-and-your-divorce-your-top-8-questions-answered", "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 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" : "What do you need to know if a divorce is possible in your future? Regardless of which path your relationship goes, here are seven helpful tips to be aware of: 1. Seek the RIGHT Advice for YOU Not all advice is best for your situation. Relationships are different, and all divorce experiences are unique. Be sure to take friend’s and family’s advice with the grain of salt. Not all divorce professionals are aligned with your priorities regarding your changing relationship with your spouse and therefore what you need. Some attorneys excel at litigating divorce which can cause more conflict yet provide the highest level of protection for those who require that level of representation. Make sure to research divorce methods, the pro’s and con’s of each option, and what is best suited for you before moving forward (refer to Divorce Methods & Options here). Research and interview qualified professional who align with the method that best suites you and provides the qualified services you require. The following are a list of professionals available to help you: Attorney Collaborative Attorney Mediator Financial Divorce Analyst Divorce Coach Counselor (or Collaborative Facilitator) Is a Divorce in Your Future? Get Prepared with These Essential Tips. 2. Gather and Organize Financial Information Regardless of where your future is headed, it is extremely important to be aware of your finances. If at all possible, locate financial documentation titled in either you or your spouse’s name. The more organized you are, the more you will be able to utilize time with professionals, know what should be monitored and move forward more easily if things progress. If things do not proceed to divorce, you will now be a more informed and accountable partner. Here is a list of items to prepare: Bank Statements Business Statements (assets, debts, income and expenses) Retirement Account Statements Investment Account Statements Private Investment Contracts Debt Statements (credit cards, car loans, mortgages, student loans, etc) Pay Stubs or other income documentation (W-2s, 1099s, check copies, etc) Income Tax Returns (past 3 years) List of assets and debts brought into marriage (and respective values at the time) Business Balance Sheet and Profit and Loss reports Credit report (to ensure all debt is accurate and protect sources) Other additional documentation maybe required as your case moves forward. If you do not have access to this information and a divorce is initiated, your spouse will be court ordered to provide you with all financial information. 3. Establish a Separate Bank Account and Credit Card In the event you and your spouse are not seeing eye to eye and you require funds to hire an attorney or make a deposit on a new living arrangement, it is critical to have funds available to access either through a checking account or available credit. If a spouse has already filed for divorce it is important to make sure to disclose any new accounts to your spouse and it’s purpose to provide transparency. It is never advised to open an account to try and hide money. Seeking legal counsel before making these changes is always recommended. 4. Track Current and Future Anticipated Expenses Understanding your current financial obligations (expenses) versus total household income will help you and your support team map what you need in the future. Staying current all debt and expenses during this time should be a high priority even if it means only paying required minimums. Minimize expenditures as best as possible to prepare for additional expenses such as professional fees and alternative housing costs. 5. Set Priorities & Establish Boundaries Everyone hopes for an amicable divorce. The reality is that sometimes as much as we try to keep things cordial, sometimes escalated conflict is out of our control. It is important to start with firm boundaries and be willing to compromise. To avoid getting stuck on one issue, be aware of your priorities regarding the divorce and refocus often (write down your priorities on the Priority Worksheet here). It helps to do this at the beginning before arguments heighten. 6. Do Not Make Big Financial Decisions It may be tempting to sell an investment to raise cash or purchase a new home to solve short-term needs while the divorce is pending. However, making big decisions before knowing the details of the largest financial transition in your life and how it will affect your future, is extremely risky and very challenging logistically – in other words, a lot of room for errors. If a spouse has filed for divorce, making significant financial changes that are not approved by your partner may be grounds for contempt of court. 7. Stay Calm Emotions are known for taking over, pushing couples into divorce and heightening both conflict and costs during the process. If you have been going to marital counseling and continue to feel like you are not making the progress you need, it may be time to consider a different type of counseling. Discernment counseling helps you determine if you want to move forward with a divorce. If you or your spouse make the decision to divorce, a divorce coach can help you keep your emotions in check during the process, weigh various options, improve communication and create a well thought out plan for telling your children if applicable. Remember that once a divorce is final, agreements can be significantly harder to change, if at all. Surround yourself with friends and family that will help support you through the process and hire professionals that are best suited for you and your changing family. It is possible to plan for a smooth financial transition today that leads to a stronger tomorrow. Contact Amy at A.M. Financial for all of your Denver Divorce Financial Planning needs.", "author" : { "@type" : "Person", "name" : "max.melomed@gmail.com", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/max-melomedgmail-com" }, "dateModified" : "07/02/2023", "datePublished" : "07/02/2023", "headline" : "7 Tips if a Divorce is on the Horizon", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/0cbd19_a47f2d62c506477182994a09f4d42517~mv2.webp", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/7-tips-if-a-divorce-is-on-the-horizon", "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" : "Transitioning financially through divorce has many moving parts. Stress testing your strategy regarding how income and expenses can change your circumstances in the future is important to consider. Understanding how spousal or child support can be modified will help you answer questions such as ‘should I go back to work?’, ‘how much should I spend on rent?’ or ‘how much should I keep in my emergency fund?’ Overall, it also assists you in creating a workable settlement that you feel secure about moving forward. This topic is subject to state statutes and legal counsel is always advised regarding your specific situation. The following are considered general guidelines. A.M. Financial does not provide legal or tax advice. Spousal Support Start by reviewing your divorce papers as they might provide insight regarding allowable modifications regarding your case. Some arrangements allow for adjustments due to income changes within a specific percentage by either party. For example, receiving a significant pay raise or transitioning from part-time to full-time work could trigger modifications to support. Other changes in employment, living arrangements (moving in with a boyfriend or roommate) or injuries leading to long-term disabilities can also be cause for support to be modified. Contractual spousal support agreements mean modifications cannot be made unless stated otherwise. Individuals who have concerns that an ex-spouse could potentially and purposefully be vindictive, e.g., risking their employment in attempts to avoid paying support, should speak with their attorney to see if a contractual support agreement or lump-sum payout would be a workable option for your case. Be aware that if spousal support decreases more than $15,000 per year within the first three years after a divorce, significant tax consequences could result unless the changes were due to death or remarriage. It is important to speak to an attorney or tax professional to review your case. Child Support Child support is determined by state guidelines which are based on overnight visits with each parent. If the number of overnight visits changes due to a move, change in school or other circumstance, parties can petition for a modification. Many of the same occurrences that can change spousal support also apply to child support – employment changes, disabilities, etc. Child expenses such as medical expenses, daycare, educational expenses or extra-curricular activities are addressed either in the child support worksheet or the parenting plan. When items listed on the child support worksheet change, such as daycare expenses or child health insurance expenses, modifications can be made. Spousal support is viewed as income to the recipient and affects the amount of child support. Therefore, if spousal support is modified then child support will most likely change as well. How to Modify Support Arrangements If changes have occurred that warrant a modification in either spousal or child support, paperwork should be submitted requesting an adjustment with an explanation for the change. Just like any other time in the divorce process, it is prudent to seek legal counsel to understand your rights and how to protect yourself. Depending on the situation, if a petition for modification is received in agreement with the other party the process can be straight forward and timely. In other cases, when parties are unable to come to an agreement, the issue will be decided in front of a judge. It is important to note that individuals remain responsible for court-ordered arrangements until a request for modification has been submitted and alternate arrangements have been approved.", "author" : { "@type" : "Person", "name" : "max.melomed@gmail.com", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/max-melomedgmail-com" }, "dateModified" : "14/01/2023", "datePublished" : "14/01/2023", "headline" : "Stress Testing a Budget in Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/e2f69251cb244a16a0c1f7d6f87aba1e.webp", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/stress-testing-a-budget-in-divorce", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ```