--- title: Our Blog - AMF Divorce (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) # 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 Property Division Real Estate Spousal Support Emotions Family Mediation Retirement Planning Separation Tips Co-Parenting Coaching Court Estate Planning Kids 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. ## [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) ## [Property Division Values, Part 3: Home Equity](https://amf-divorce.com/our-blog/property-division-values-part-3-home-equity) January 13, 2023 When dividing assets in divorce individuals, mediators and attorneys alike, tend to focus on the property division spreadsheet. The current values of asset and debt balances determined to be... [CONTINUE READING](https://amf-divorce.com/our-blog/property-division-values-part-3-home-equity) ## [Divorce: A Catalyst for Change](https://amf-divorce.com/our-blog/divorce-a-catalyst-for-change) January 13, 2023 Any major life event, including divorce, can be a catalyst for overall life changes. By recognizing and accepting that any big life change will result in many other significant changes, you’ll... [CONTINUE READING](https://amf-divorce.com/our-blog/divorce-a-catalyst-for-change) ## [Options to Handle Rental Properties in a Divorce](https://amf-divorce.com/our-blog/rental-properties-mahlen-financial) January 10, 2023 While there is so much to sort through in a divorce, splitting up rental properties can add additional complexity to your separation. You do have several options for handling rental assets, and the... [CONTINUE READING](https://amf-divorce.com/our-blog/rental-properties-mahlen-financial) ## [Divorce Season: Key Tasks for Success](https://amf-divorce.com/our-blog/divorce-season-key-tasks-for-success) January 04, 2023 Divorce season is upon us. January is the most common time for divorces throughout the year, for various reasons. Many couples are trying to get through the holidays for their families, or are... [CONTINUE READING](https://amf-divorce.com/our-blog/divorce-season-key-tasks-for-success) ## [Separate vs. Marital Property: Understanding the division of assets in your divorce](https://amf-divorce.com/our-blog/separate-vs-marital-property) January 03, 2023 Getting a divorce means learning a whole new vocabulary of legal and financial terms. Therefore, having a team of experts to talk you through new concepts and what to consider as you make important... [CONTINUE READING](https://amf-divorce.com/our-blog/separate-vs-marital-property) ## [Stay at Home Moms: Learning to Budget Post-Divorce](https://amf-divorce.com/our-blog/stay-at-home-moms-learning-to-budget-post-divorce) June 01, 2022 In my work supporting divorced individuals in the Colorado area along their financial journey, I see one particular group of clients who struggle more than others. Long-time stay-at-home mothers... [CONTINUE READING](https://amf-divorce.com/our-blog/stay-at-home-moms-learning-to-budget-post-divorce) ## [Preparing for Mediation in your Divorce](https://amf-divorce.com/our-blog/mediation-in-your-divorce) June 01, 2022 Many divorcing parties believe their case will [go to court](https://mahlenfinancial.com/3-myths-about-going-to-court-in-a-divorce/) because there is so much friction and disagreement about the path forward. The media also portrays divorce this way. In reality, it’s much... [CONTINUE READING](https://amf-divorce.com/our-blog/mediation-in-your-divorce) ## [5 Helpful Tips to Get You Through Divorce](https://amf-divorce.com/our-blog/5-helpful-tips-to-get-you-through-divorce) June 01, 2022 Divorce, separation, breakup. Whether you’re the one who initiated it, or the one on the receiving end, going through it remains a very difficult life transition. The end of a relationship is not... [CONTINUE READING](https://amf-divorce.com/our-blog/5-helpful-tips-to-get-you-through-divorce) ## [Retirement Savings Plans in 2023: What to Expect](https://amf-divorce.com/our-blog/retirement-savings-plans-in-2023-what-to-expect) June 01, 2022 You may have heard about the big changes coming to retirement plans and savings options in 2023. Both changes, made by the IRS, benefit employees or those saving for retirement. These changes were... [CONTINUE READING](https://amf-divorce.com/our-blog/retirement-savings-plans-in-2023-what-to-expect) - - [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) - [10](https://amf-divorce.com/our-blog/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" : "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" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "When dividing assets in divorce individuals, mediators and attorneys alike, tend to focus on the property division spreadsheet. The current values of asset and debt balances determined to be marital are outlined. 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 experience? In most divorces, the largest asset involved tends to be the home and therefore carries a plethora of questions regarding equity and living arrangements moving forward. The bulk of planning efforts focus on basic budgeting and are driven from an emotional perspective of either an intense feeling of wanting to keep the home, run from it or utter confusion. Regardless of whether you wish to stay in the home or establish a new living space by renting or purchasing a new home, it would be remiss to rely solely on the real estate value listed on the property division worksheet, basic budgeting applications and not consider the following: Part 3: Home Equity and Future Living Arrangements Capital Gains Tax Capital gains taxes are assessed when a home is sold. Therefore, when one partner refinances and stays in the home, future taxes are overlooked during the divorce process as all eyes are focused on the equity numbers listed on property division worksheet. When the home is sold post-divorce an exclusion is available for up to $500,000 for married couples or $250,000 for individuals as long as the home has been owned and used as a primary residence for two out of the last five years. The equity growth and potential capital gains tax involved, especially for longer marriages, can be significant down the road if a spouse stays in the home and can only utilize the lower individual exclusion. For example, if Anne wishes to stay in the home where she raised her kids for the passed 18 years that was purchased for $150,000 and is now worth $750,000, upon sale of the home (assuming no additional growth in value) she would experience a $600,000 gain. If she refinanced the home into her sole name and remains unmarried, Anne would qualify for a $250,000 exclusion leaving her with a taxable gain of $350,000. Capital gains are most often taxed at a rate of 15% which would amount to an additional tax bill of $52,500 when the home is sold – a large financial burden to deal with for an individual! Keep in mind that if there is additional equity growth in the home, the tax will be even larger. Mortgage Lending Requirements Many couples finalize their divorce without integrating mortgage lending requirements into their settlement which can close doors for intended plans post-divorce. Debt to income and loan to value ratios are directly affected by equity payout agreements and support payments that are nearly impossible to change for mortgage lending purposes after a divorce has been finalized. To qualify as income, spousal and child support payments must meet specific time guidelines. These issues don’t affect the property division worksheet directly, however, post-divorce changes affect the financial strategy within the property division worksheet. Read Part 1: Retirement Accounts and Part 2: Non-Retirement Accounts in this series for more information and examples. On-Going Maintenance and Taxes Regardless of if you are planning on staying in your home or purchasing a new home, a home inspection is recommended. This report provides a full picture of the condition of the home, outlining serious issues that might require substantial financial outlays as well as other problems that should be addressed causing a financial impact down the road. As real estate values continue to climb, property taxes continue to rise. If you are looking for long-term living arrangements post-divorce it is important to leave a large enough margin in your budget to adjust for possible tax increases and home maintenance whether it is expected and listed on an inspection report or an unforeseen emergency – don’t overlook the importance of an emergency fund and how to manage replenishing it. Conclusion Establishing living arrangements for moving forward is complex and requires more analysis and planning then exclusively relying on a 50-50 division of property concept. Be sure to evaluate 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 you and 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" : "13/01/2023", "datePublished" : "13/01/2023", "headline" : "Property Division Values, Part 3: Home Equity", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/a6bd209816b54d1eca7231d293d682f7.webp", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/property-division-values-part-3-home-equity", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Any major life event, including divorce, can be a catalyst for overall life changes. By recognizing and accepting that any big life change will result in many other significant changes, you’ll likely find the transition easier. Knowing this, it’s possible to be intentional about the changes you want to see in your life during this crossroad. Those might include financial changes, a new work situation, changes in your family traditions, your schedule, dating, your living situation, and even your overall lifestyle. Change can be both overwhelming and exciting. In this post, we discuss how to own, plan, and design your post-divorce life by using divorce as a catalyst for positive change. Honor the Transition Divorce is undoubtedly stressful and the most challenging time of separation is often the time of indecision. During this time, it feels like you are trying to figure out what the future will look like without a true vision, blueprint, or roadmap to get you where you want to be. First off, recognize that the time of transition is often the hardest and that it won’t feel this way forever. At the same time, temporary arrangements made to parenting time, holiday time, or decision-making authority could change again as you negotiate the official decree. The more work you can do to create a plan for success, both financially and from a life design perspective, the sooner it will feel like a new normal rather than a time of uncertainty. Being intentional about what you want can help you settle into healthy and productive life patterns faster through adapting habits related to finances, a new job, a new parenting schedule, and decision-making. You can get clear about what’s possible and realize the future you desire through preparing, planning, budgeting, saving, projecting your retirement savings, and understanding any financial protections you may need (such as insurance). For example, if you plan to take on a new house payment, have a new job, and have savings set aside, working on a budget to understand how much you’ll want in retirement savings in your divorce settlement to complement other financial assets is critical to realizing the financial freedom you want in the future. Own Your Decisions In addition to struggling with the transition of your divorce and all the associated change, you may notice that, possibly for the first time in your life, you’re making decisions on your own. If you find yourself struggling with these decisions, know that that is normal. You are no longer making major life choices about everything from your living situation to your career with the input of your partner, his/her expertise, and perspective. You may feel added pressure or uncertainty due to these new autonomous dynamics. Once again, your divorce can be a catalyst for you to get clear about what you want, based on your values and life vision, which might even be difficult to even articulate after sharing so much of your life and self with a spouse. For example, if you are moving into a new house post-divorce, this may be the first time you have made the decision about your living space and location on your own. In order to make a decision that aligns with your needs, reflect on what is truly important to you without the influence of your former spouse and his or her opinions about living arrangements and circumstances. You now have the opportunity to define new decision-making criteria, taking financial considerations into account. Along with this, you have a new responsibility to yourself and your own happiness by choosing a path that aligns with your wants and needs. Get Clear about What You Want Divorce is an opportunity for re-evaluation, planning, and preparing for the life you want. It’s an exciting time for you to build your future! Recognize that the decisions you make as you negotiate various aspects of your divorce decree can have a ripple effect. As you consider all the options available in your future, notice how one change or decision can impact others and/or limit what’s possible for you from a work and earning perspective. For example, the parenting time agreement will influence what’s possible with your career as well as child support and/or maintenance. This will impact your finances as well. In another example, quitting or changing your job won’t necessarily impact your financial obligations or what you receive from your spouse for support, since imputed income and historical income will be taken into consideration in these circumstances. Instead of looking for ways to minimize what you might owe your spouse or extract as much value from your spouse, do what is best for your future long-term. Don’t get wrapped up in short-term wins. For example, sometimes going back to work immediately can ‘hurt’ your short-term situation and the support you receive, but not always. Other times, getting back to work immediately can help you from a resume-building and independence perspective, which can be rewarding psychologically, especially long-term. Your attorney can advise you based on your unique situation. Lastly, recognize when you are just trying to “win” in your divorce versus setting yourself up for the best financial future. Be willing to surrender and compromise for the best long-term situation, even if it means “losing” some aspects of the divorce battle. A major transition in life, such as divorce, can be a catalyst for positive change and you have an abundance of choices to make that can facilitate a secure and rewarding future. It’s possible to improve your finances and your relationship with your children, friends, family, and self during this time. By focusing on your values and investing in your financial future, you can reclaim the life balance you want. At A.M. Financial, we are here to help you budget and plan for the future with the resources you need. We can support your decision-making process by providing financial insights when it comes to planning the next phase of your life. Contact us to share more about your specific situation and learn about how we can help.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "13/01/2023", "datePublished" : "13/01/2023", "headline" : "Divorce: A Catalyst for Change", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-YOt7Qk.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/divorce-a-catalyst-for-change", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "While there is so much to sort through in a divorce, splitting up rental properties can add additional complexity to your separation. You do have several options for handling rental assets, and the option you choose will depend on your long-term financial goals. In this post, we help you determine whether your rental properties are marital or separate property, what to consider as you weigh the options to handle these investments and the tax implications of your decision. Is my rental marital or separate property? In general, rental properties that were purchased during your marriage are marital assets. If the property was purchased by one party prior to your marriage, then that property would belong to the original purchaser if the title of the property has been kept in their single name. However, any appreciation of a rental property that happened during your marriage is considered a marital value, even if one party owned it first. Learn more about marital versus separate property in detail in our related blog post. What options do I have to handle my rental investment? In general, you have four options when it comes to what you can do with your rental property in your divorce. Sell the Property: In the simplest and more common approach, neither of you keep the rental properties and instead, you sell them and split the profits net of fees and expenses, including applicable taxes. 2. One Spouse Keeps the Property: Another common approach is splitting up the properties as you would any other shared asset. In this case, one party gets the rental property and the other party gets an equal asset. Sometimes one party even moves into the rental home as their primary residence, depending on the condition and location of the property. You start this process by getting an appraisal to ensure the declared value is fair. Once this is agreed upon, the party keeping the property will need to refinance the rental in his or her name only. It is important to note that the party keeping the rental will need to be able to qualify for the loan on their own, without the spouse as a co-borrower. Therefore, mortgage planning is incredibly important prior to finalizing a divorce and a scenario that the team at A.M. Financial can help walk you through with an experienced divorce mortgage lender. Operate the rental properties together: A less common scenario is to co-manage your rental properties. This is not recommended in most situations but can be done, especially if you have an amicable separation. Sometimes parties choose this as a short-term solution until the market is favorable to sell. If you do choose this option, be sure to open an LLC or trust to hold the property and hire a property management company to manage the details so you don’t have to interact regularly with your ex-spouse. Split multiple properties evenly: If you own more than one rental property, you can both remain rental owners by equally spitting the properties. Once again, you would need to start this process with property appraisals to ensure the declared value is fair and you’ll need to have the means to refinance any properties in your name only. Therefore, you’ll need to ensure you can qualify for the loans you will need on your own. What are the tax implications of rental properties? Part of the financial preparation for a divorce is understanding the tax implications of your decisions around dividing assets. This is especially true for selling and/or transferring property as real estate is often the largest asset and carries the most tax liability or tax benefit. Taxes can vary based on your personal situation. Here are some tax considerations related to rental properties to keep in mind as you weigh the pros and cons of the various options above: Note that the personal residence tax exclusions of $250,000 for single tax filers or $500,000 for married filers do not apply to sold rental properties (unless certain requirements are met). Consider capital gains tax (which can be 15-20%) in addition to depreciation recapture (25%). These combined fees can reduce your profit received in a sale by upwards of 50%. Taxes can drastically affect the total net value received from proceeds received today or in the future. Ensure you understand the current and future implications of your decisions, which vary from asset to asset. When you work with a financial advisor who specializes in divorce, you work with an expert who can analyze the pros and cons of any decision related to rental properties, in the context of your entire asset portfolio. This analysis can inform your decisions, and help you clearly understand the tax-adjusted value of your assets when dividing all marital property. While this post addressed rental properties, many of the same concepts may apply to vacation homes or other second homes. Working with a Certified Financial Divorce Analyst (CFDA) helps you model various scenarios to ensure you are making the right decision based on your financial goals, giving you peace of mind and taking some of the emotion out of these difficult choices. When you work with a financial specialist who knows the unique implications and considerations of a divorce, you are more likely to have positive financial outcomes both now and in the future. Contact us for a consultation.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "10/01/2023", "datePublished" : "10/01/2023", "headline" : "Options to Handle Rental Properties in a Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-UjGEIZ.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/rental-properties-mahlen-financial", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Divorce season is upon us. January is the most common time for divorces throughout the year, for various reasons. Many couples are trying to get through the holidays for their families, or are taking time during the holiday season to reflect on their relationship happiness and make a decision in the new year. More logistically, other couples might be discussing divorce for awhile and choose to file at this time of year due to the financial clarity of filing at the beginning of the year from a tax and income perspective. Even if divorce has been on your mind for some time, don’t underestimate the changes that will occur during and after your divorce. Recognize how difficult this time may be for you, your family, your spouse, and your finances. Not to mention, the decision to get a divorce is not always black and white. If you still aren’t convinced that divorce is the right next step, explore Discernment Counseling with your spouse to get a more definitive conclusion about whether divorce is what you want. This method of therapy helps indecisive couples reach a stay or go decision about their marriage. Once you know that divorce is imminent, you’ll have to navigate two key tasks that are important in the early phases of your divorce: sorting through the finances and choosing a divorce method. In this post, we help you understand more about making decisions around these early tasks in your divorce. Prepare Financially Even before you officially file for divorce, it’s critical to get your finances in order. In fact, one of the first mandatory documents required by the court is a Sworn Financial Statement, which is a summary of your income, assets, debts, and expenses. As you complete this document, you’ll also want to verify account access and make sure your name is clearly on any assets that you own or co-own with your spouse. Is a Divorce in Your Future? Get Prepared with These Essential Tips. In addition to documenting various aspects of your finances, start thinking about your budget and your current or necessary spending. Instead of making any significant purchases right now, start putting aside money for future needs such as divorce expenses, possible moving expenses, new furniture, and even a deposit on a new place to live. If possible, pay off as much debt as you can before filing to reduce the complexity of your settlement. Lastly, begin to interview financial advisors that can help you plan for your financial future alongside your divorce (no matter which divorce method you choose). Choose a Divorce Method If you aren’t familiar with divorce, you may assume it will look like it does in the movies with courtrooms and high-powered attorneys presenting their side of your case to a judge. That isn’t the way more divorces unfold in the real world. In fact, there are four common divorce paradigms with pros and cons to each approach. Choosing the right method for your situation will impact your finances, timeline, relationship with your former spouse, settlement, and other aspects of your life. The divorce method you choose largely depends on how much you can spend on your divorce, your desired timeline, and how amicable the situation with your ex is. The four common types of divorces are: 1. Do-It-Yourself (DIY) Divorce This is a good choice if you have minimal conflict with your ex. It’s also favorable if you have fewer or less complex assets, similar income, and/or no children. Of course, one of the top benefits is saving money, yet sometimes this type of divorce can get drawn out if there is confusion about what to file, or if one party is dragging their feet. Without experts guiding the process, there may be more misunderstandings or confusion, especially about long-term needs or agreements. It’s critical to work closely with a financial advisor who specializes in divorce if you choose a DIY divorce so that you make informed decisions about your finances. A divorce coach can also be helpful in a DIY divorce, providing guidance, non-legal expertise, and support during this time. Divorce coaches are especially helpful if you expect a significant life change following your divorce, such as a new job or relocation, or endured an abusive relationship with your ex. 2. Mediator-Led Divorce A neutral third party can often help guide you if you and your spouse are mostly on the same page about their divorce, and mediator-led divorces can cost far less than hiring attorneys. This method of divorce often reduces conflict and speeds resolution on key disagreements around parenting time or how assets will be split. Both parties often feel heard and don’t experience the emotional toll of going to court or battling toward desired outcomes through their attorneys. However, the quality of the assigned mediator can have an effect on the outcomes and occasionally, limited time means that important topics are overlooked. 3. Litigation & Hiring an Attorney Some couples might try the first two methods before eventually hiring attorneys and preparing for court. This can sometimes be the only option if there is hostility, ongoing disagreement, safety concerns, abuse, addictions, or a reluctance to compromise. This method can be the most expensive and can have the longest timelines since the court is involved. You may feel less in control of the outcome of your divorce negotiations. On the plus side, having someone advocate for you can set you up for long-term success and stability. Recognize that hiring the right attorney by screening them in an interview is essential to getting the outcomes you want. Don’t overlook how important it is to choose an attorney with the experience and resolution style you need to settle your case, as well as one who is aligned with your values. Ensure that the attorney you choose is open to working with other experts in your divorce, whether you consult them for parenting time advice or financial guidance. 4. Collaborative In a collaborative divorce, a team of professionals help you settle out of court. The team can includes coaches, financial professionals, mental health experts, realtors, appraisers, mortgage professionals, child behavior specialists, and more. This is a great choice if you and your spouse’s goal is to retain the best post-divorce relationship, and are solution-oriented. In this type of divorce, you commit to reaching a mutually acceptable agreement. The professional team helps you reach resolution and creates a supportive environment of healing and recovery for your whole family. Learn more and find professionals on the Colorado Collaborative Divorce Professionals website. Consider what method might work best for you based on the relationship with your ex, the resources available to you, and the timelines you hope to achieve with your divorce. Begin interviewing the experts you need early in the process, so you are ready to meet timelines and stay informed about your options. If you need help organizing your finances and understanding your financial disclosure obligations in your divorce, contact us for professional financial support. If you would like to receive a list of the top divorce methods, along with their pros and cons, contact us for a copy of this important resource.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "04/01/2023", "datePublished" : "04/01/2023", "headline" : "Divorce Season: Key Tasks for Success", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-Ue7fIJ.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/divorce-season-key-tasks-for-success", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Getting a divorce means learning a whole new vocabulary of legal and financial terms. Therefore, having a team of experts to talk you through new concepts and what to consider as you make important decisions is essential to surviving the divorce process. In this post, we share our expertise around how to determine whether your property is separate or marital and what that means or your division of assets. Please note that this article details general expertise and please consult your attorney and team of professionals for specific guidance. What is considered Marital Property? Just as it sounds, marital property is shared property in the marriage. Examples of marital property include property acquired after the parties are married, which is technically from date of marriage to date of filing for divorce however, the laws do vary by state and in some cases by specific situations. Marital property also includes property appreciation, which happens if the property was acquired before the marriage by one spouse but has gained value during the marriage. That appreciation is considered a marital asset. On the other side, debt accrued together is also marital debt. Sometimes questions arise with clients about how property is titled or who’s name is on accounts. It is important to note that it does not matter whose name is on the titles of cars, homes, rental properties, or other assets. If they were acquired while the parties were married, they are shared assets regardless of these legalities. The same goes for money in separate bank accounts, which is marital property if that money was accumulated during the marriage. In fact, all income earned by either spouse during the course of the marriage is considered a marital asset from a fundamental perspective. Gifts given from one spouse to the other during the marriage are typically marital property, although some exceptions apply and it’s always a good idea to seek legal advice from a state-specific specialist. Lastly, sometimes property exceptions are outlined in a prenup or postnup, which should also be reviewed by an attorney during your divorce. What is considered Separate Property? On the other hand, separate property is any property acquired separately before the marriage or any property or assets acquired after separation (even before the divorce is finalized). Exceptions to this, some of which are uncommon, include: Any gifts given by a third party to one spouse Inheritances acquired by either spouse at any time Money from a personal injury lawsuit paid specifically to one party for pain and suffering It’s important to note that all separate items must remain the party’s separate name in order to remain separate property. If these assets are co-mingled into joint title or joint accounts, they can become marital property. How is property divided? Generally, all marital property, assets, and debts are divided between the parties in a divorce. A division of property does not necessarily mean an exact physical division, but the overall value of all assets will be divided equally. For instance, if one party would like to retain all rental properties, the other party may receive more retirement funds. Separate property is not subject to division in this process. When you divide property, overall percentages are close to equal (50/50) in the end. If the division is not exactly equal the parties can either agree to the difference or can determine an ‘offset’ transaction in which one party will pay the other spouse a specific amount in order to make it as equal as possible. This is where negotiation strategy from your attorney and short- and long-term planning come into play with a financial advisor. Keep in mind that the overall percentage of assets can be drastically skewed if taxes are not taken into consideration, sometimes by up to 40% or more. A Certified Divorce Financial Analyst can help you perform analysis on this as most family law attorneys do not provide this service. Each divorce is different and parties have unique wants and needs based on their goals and vision of the future. Some things may be more emotionally or psychologically important to one part or better align to future goals and plans. For example, you can’t physically split a house, but one party can receive the house in the divorce and the other can receive the cash from refinancing the home, or another asset to offset the difference. One party may value the home more for the kids while the other may want to retire earlier. In this case, one spouse could also buy the other out. As another example, If maintenance is involved, parties can opt for a lump sum payout instead of monthly payments that would alter a 50/50 division. Equity in the home, or other assets, can be provided to the individual receiving maintenance in lieu of monthly payments. There must be sufficient assets available for this to be an option. This might be important to one party if cash is needed for a home down payment or vehicle purchase. When you officially transfer a property from a marital asset to one party in the divorce, the spouse not awarded the property must consent and relinquish all rights, title, and interest in the property by deed or other written agreement. This usually happens post-divorce with written stipulations of a specific deadline. At A.M. Financial, we help you understand different options for splitting marital property and what those options mean for your financial outlook now and in the future. We can provide the analysis you need to make decisions, and discuss how your needs and values align accordingly. Contact us for a free consultation and learn more about how we can support your divorce today.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "03/01/2023", "datePublished" : "03/01/2023", "headline" : "Separate vs. Marital Property: Understanding the division of assets in your divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-cpOdn4.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/separate-vs-marital-property", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "In my work supporting divorced individuals in the Colorado area along their financial journey, I see one particular group of clients who struggle more than others. Long-time stay-at-home mothers who weren’t involved with managing the finances or individuals who may have fully handed off financial management to their former spouse tend to have significant struggles during and after a divorce. In this post, I highlight the two main insights I have about this group. If you identify with this group, I’ll share ways you can change your perception of money to better support your financial goals. Lastly, I’ll offer ideas and tips to make the transition to post-divorce budgeting easier. Money is a Limited Resource Many stay-at-home moms had access to what may have felt like unlimited funds in their marriage. Some may have had a credit card that their spouse paid off and managed and used it freely for groceries, gifts, items the kids needed, registration fees for sports, spa days, and the list goes on and on. After a divorce, individuals who weren’t involved in financial planning or didn’t directly generate income for the family go through a period of relearning budgeting as they now likely have a fixed income and must fit their spending needs into a monthly allocation of maintenance and/or child support (along with any other supplemental income they might have such as now working outside the home). It takes time to fully recognize that money is limited, especially if it didn’t feel that way in their marriage. Only when we learn that money is limited can we really understand the true ‘value of a dollar and money in general. If you previously were not involved in money management of the home, you may be pretty far removed from all the expenses required for day-to-day living. If your spouse was a single-member CFO in the relationship, you may not even see all the bills that were coming out of your account via direct deposit each month or you may not have a clear understanding of the cost of maintaining things like a home, car, and more. You may even be overwhelmed by setting all this up yourself and making sure you have enough money in the right accounts for regular bills, checks, and payments to clear. If you weren’t involved in the day-to-day finances and budgeting in your marriage, you were likely also not part of retirement planning. Therefore, you may have a significant blind spot around how to budget and invest for retirement, how these decisions impact your taxes and the importance of planning for the future. It’s critical to get the help and support you need from a financial professional to ensure you don’t end up with a surprise tax bill or worse, end up unprepared with the resources you need for retirement. Most stay-at-home moms I work with post-divorce go through a process that leads them to understand money’s value firsthand. This comes through having to make hard decisions about what’s most important on a monthly basis, and learning how to make decisions when you have competing financial demands by creating a budget that aligns with your values. Budgeting is Key to Success Budgeting and money management can be extremely difficult post-divorce. It requires discipline, prioritization, and sacrifice. In order to create a budget that truly works for you and your family, you must first spend time outlining your values and aligning your limited money with those values. This process of understanding your financial priorities leads to the most life satisfaction when finances are tight. For example, if experiences are important to your family, such as vacations, nights out, dinners, and events, then you’ll have to make sacrifices elsewhere to prioritize spending in this category. If you appreciate and want to prioritize a nice home that is fully decorated, professionally cleaned, and landscaped, and have friends over regularly to enjoy it, your social finances might be spent in this category instead. It’s important to get clear about where items like new clothes, organic food, and putting your child in competitive sports fall on the value spectrum for you so that you can align your budget accordingly. As you work through the process of developing a values-based and realistic budget, have grace and patience with yourself and your advisors. As you get closer to understanding your financial limitations, you may want to share those more broadly with your family. Depending on the age of your children, you may want to create transparency around financial priorities in your post-divorce life and even get them involved in the planning and balancing of your budget. Similarly, you can share the amount of money you have budgeted for the holidays with close family members in an effort to align gift-giving expectations with your finances. A financial advisor can help you create a budget that not only aligns with your values but also improves your financial confidence by setting spending boundaries for you and your family. Committing to an ongoing relationship with a trusted financial partner means you can revisit this budget often to understand whether you must supplement it with part-time or full-time work and to ensure you are saving enough for retirement and emergency expenses. Budgets must also evolve with your changing family. Your teen children won’t have the same financial needs as your toddlers did, and your values will continue to change over time as well.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "01/06/2022", "datePublished" : "01/06/2022", "headline" : "Stay at Home Moms: Learning to Budget Post-Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-87B5FB.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/stay-at-home-moms-learning-to-budget-post-divorce", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Many divorcing parties believe their case will go to court because there is so much friction and disagreement about the path forward. The media also portrays divorce this way. In reality, it’s much more likely that you’ll settle details of your divorce through collaboration with your attorneys during mediation. Many courts will order mediation before you involve a judge in your case. Mediation saves the parties time and money because it takes more time and resources to prepare for trial than to negotiate with a mediator. Courts also order mediation because it is often successful and generally parties are more satisfied with the outcome of their case than those who ultimately go to court. In this post, we help prepare you for the financial aspects of your mediation, including steps you can take to get ready, building your support network, and understanding limitations. Prepare Your Case If you have arrived at mediation, then you likely haven’t been able to come to a complete compromise on an aspect of your settlement. In approaching mediation, you can more easily make a case for what you want in your settlement if you come prepared. Make sure to complete and exchange any required documentation, such as a sworn financial statement, before mediation. Create a list of key topics that matter to you to ensure the conversation stays on track. Meet with a Certified Divorce Financial Analyst (CDFA) before mediation to understand future cash flows, tax implications of asset division, and budgets. The more familiar you are with the subject matter the more comfortable you will be to negotiate toward a better outcome. Get clear about what you want, your goals, and your desired outcomes of mediation. Make sure you and your attorney have discussed these wants so that you can frame your negotiations around them. Consider what you’ll accept, from cash, to assets, to how you’d like the home divided and any other decisions that are unique to your divorce. Consider the tax consequences, financial logistics and benefits of all possible outcomes beforehand, so you understand the implications of what you might agree to in a mediation session. Calculate a post-divorce budget that you can present to the other party with detailed monthly income and expenses. Outline detailed future expenses like child care and health insurance. It can also be helpful to put together various scenarios based on employment situations (part-time, work from home, work in office) if you are currently not employed. Bring mortgage refinance information including future payments and cash out possibilities to be considered, timelines including when a mortgage can be refinanced based upon regulations, and what spousal or child support is needed. Design Your Support Network More than ever, people getting divorced are involving a variety of experts to advise them throughout the process. Consider who you might bring to various mediation sessions or who you may need to hire to support negotiations. Consider involving a financial expert who specializes in divorce to negotiate the details of your portfolio or a loan advisor to negotiate restructuring your home mortgage. Know Your Limits Don’t forget that you are not obligated to settle the details of your divorce in mediation. You’ll likely have a list of non-negotiables, and that is okay. You can walk away from these sessions if your non-negotiables aren’t being addressed in a way that is acceptable. You can also schedule multiple sessions if there are many details to negotiate in your divorce, if you need several different experts, or if long sessions tend to get heated. Sometimes, you may agree to a large part of your settlement through mediation, and still go to court for just one or two aspects that you can’t come to an agreement around. This can sometimes be an ideal outcome. A.M. Financial can help with financial expertise for those going through divorce by providing insights and tools unique to your situation. Contact us to share more about the finances of your divorce and learn how we can help.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "01/06/2022", "datePublished" : "01/06/2022", "headline" : "Preparing for Mediation in your Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-svNrIK.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/mediation-in-your-divorce", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Divorce, separation, breakup. Whether you’re the one who initiated it, or the one on the receiving end, going through it remains a very difficult life transition. The end of a relationship is not something we plan ahead or hope for usually, and there’s often an element of surprise attached to it, whether you saw it coming or not. If you are in the process of separating, or divorcing, my heart goes to you. If you are the one subjected to it, here are 5 things you should know about this stage that I hope will help you normalize your current experience and help you get through it with a little more ease. 1- You will go through a roller coaster of emotions One moment you may feel enraged and you may want to destroy everything that reminds you of your partner. The next one, you may miss him/her/them incredibly. Then, you may try to bargain with yourself: “If I could talk to him again, if I hadn’t done or said this or that to her, if only they gave me a real chance…” Sometimes all these emotions will hit you at the same time, which may feel very confusing. This is normal and to be expected. Your mind and your heart are fighting against the reality of the situation. My advice to you is to let yourself feel whatever emotions come up, and stay away from the “should feel”. You’re not supposed to feel one way or another. Grief is a messy process and we all go through it in a unique way. So, next time a wave of emotions comes up, remember that it has a beginning and an end. 2- You will go through the stages of grief in no order Grief is not a structured and organized process. Even though you may have heard of the Kübler-Ross stages of grief, these are just a road map, not a box in which everyone who goes through a loss fits. You may spend more time in the first stages (anger, denial, bargaining and depression) at the beginning, or you may not. You may go from one stage to the other within seconds or days. Acceptance may come in small bites here and there, or as the final piece of a long journey. Also, not everyone who grieves goes through all of these stages, and that’s okay: you do not have to go through each stage to feel better. Remind yourself that you are unique, and so is your process. Sometimes it helps to write down what you’re experiencing. Some people carry a small notebook everywhere to jot down a few thoughts or emotions as they come. There’s something really cathartic in the old-fashioned writing process. 3- Your self-esteem and confidence may be down for a while You may go through all the reasons why the relationship ended, and you may even blame yourself. “If I were smarter, prettier, more passionate, had a job…. He/she/they would have stayed with me” are common thoughts in this situation. Your self-esteem may be temporary lower than usual and you will gain it back as you heal. Or maybe the separation brought to light the low self-esteem you had been experiencing for a long time that your relationship had helped cover up. For more details, you can read my blog posts on why your self-esteem goes in the dumps after a separation, and the 5 ways to boost your self-esteem. 4- High emotions and finances don’t mix well together While going through the grief and emotional roller coaster that a divorce or separation often brings up, you may be required to make major life decisions that may impact you long-term. Deciding how to divide assets and making sure you get what you need or want without feeling cheated or destitute may seem overwhelming from a financial perspective. Amy Mahlen, a Certified Financial Planner® and Certified Divorce Financial Analyst®, believes it is crucial to address these questions objectively before a divorce is finalized to create a healthy foundation for moving forward and rebuilding. Understandably, individuals tend to make emotional decisions regarding finances during this tumultuous time usually out of fear or anger. Often, choices made with emotions in the driver seat can lead to a bumpy ride, possibly laden with potholes and detours. There is a way to answer financial worries that may emotionally consume you during the process such as ‘will I be okay?’ or ‘will I have what I need?’ before you settle. A financial analysis, in many cases can decrease conflict, speed up the process and provide clarity regarding decisions that will chart the next chapter of your life. 5- Don’t bank everything on the power of time Time will certainly be a major component to help you recover and heal. However, don’t count only on time to heal in a healthy way. Going through a major life transition such as a divorce is an opportunity to know yourself better, become more self-aware of your limiting beliefs about yourself and others and unproductive habits or ways of thinking that may not serve you to build a future healthy, and fulfilling relationship. This is not about blaming you or your partner for ending the relationship, it’s about taking responsibility for what we do that tends to benefit or impact the relationship negatively. The alternative of not doing the work on yourself will be to recreate the same patterns and having similar difficulties in your next relationship, with maybe the added baggage of unprocessed thoughts, beliefs, memories around your past relationship that will potentially hijack you. You can do some of this work with the help of self-help books, journaling, meditation or other tools that help you self-reflect. Therapy of course is also an option to go deeper and help you heal more fully. I often see clients at this stage, when they need help to make sense of certain life events, understand what worked and what didn’t in their past relationships, figure out without blame or judgement what part each partner played in the outcome, learn new ways of communicating and behaving. Valerie can be reached through her website at www.denverflowcounseling.com", "author" : { "@type" : "Person", "name" : "max.melomed@gmail.com", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/max-melomedgmail-com" }, "dateModified" : "01/06/2022", "datePublished" : "01/06/2022", "headline" : "5 Helpful Tips to Get You Through Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/efb2a0768e7f4ad38f056128727a919a.webp", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/5-helpful-tips-to-get-you-through-divorce", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "You may have heard about the big changes coming to retirement plans and savings options in 2023. Both changes, made by the IRS, benefit employees or those saving for retirement. These changes were driven by inflation and the associated macroeconomic impacts. In this blog post, we’ll discuss what to expect in 2023 and how to handle these retirement plan changes. Contribution Changes Every type of retirement account has maximum contributions you can make annually and/or maximum income levels that allow you to contribute. For 2023, the IRS has increased the maximum you can contribute to retirement accounts. This increase is historically one of the biggest jumps that we have ever seen. Specifically: 401K employee deferrals are increasing from $20,500 to $22,500. – Those over 50 years of age can contribute an additional $6,500. – IRA and Roth IRA maximum contributions are increasing from $6,000 to $6,500. Those over 50 years of age can contribute an additional $1,000. – The max income you can have to contribute to a Roth IRA has changed from $138,000 to $153,00 for head of household or single filing status. – The maximum is $228,000 for joint filers. While this seems like positive news, you might wonder how this impacts your retirement savings strategy. As mentioned, these changes keep retirement needs in line with costs of living, considering inflation. With these changes, it is encouraged for employees to max out their 401K and IRAs if their budget permits. It’s almost always recommended that employees max out their 401K to the point of getting a full employer match (which can be 1-10%) and is important to review with your financial advisor. Everyone’s financial situation is unique and by working with a financial advisor to create a budget that takes into account all your financial obligations, from mortgage payments to student loans, you can best take advantage of this change and its related tax benefits. Employer-Mandated Retirement Plans In the state of Colorado, there is a new mandate that employers with five or more employees must provide a retirement plan to employees. This plan is called the Colorado Secure Savings Program and it is essentially a Roth IRA with no required employer match. While it might not appear to provide direct benefits to small business employees who didn’t previously have a plan, it is a step in the right direction for those employed by a small business without retirement benefits. For example, many divorcees who work for small employers may not have previously had the ability to participate in a retirement savings plan therefore they didn’t save for retirement. Some of these employees may have previously been stay-at-home moms and don’t understand how to begin a retirement savings plan. While no employer plan can provide retirement resources to women who are simply stretched too financially thin to save, this new mandated plan is a great opportunity for women who work for small businesses to have access to the resources they need to increase their retirement savings. It’s an easily accessible way for more people to save in general. As always, it is always best to review your savings strategies with your financial advisor to determine what is best for you. While there are big changes coming to retirement accounts in 2023, they may not require significant changes to retirement planning on your end. However, even minor changes can have a big impact overtime. That’s why it is important to work with a financial planner to get all the benefits of these inflation-driven updates to retirement savings limits, and the new year is a great time to start thinking about saving in new ways.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "01/06/2022", "datePublished" : "01/06/2022", "headline" : "Retirement Savings Plans in 2023: What to Expect", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-oEckXY.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/retirement-savings-plans-in-2023-what-to-expect", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ```