--- title: Our Blog - AMF Divorce | Assets description: Assets | From mortgage professionals to therapists to attorneys, the team at A.M. Financial works closely with these types of professionals. --- ## 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) Posts about # Assets ## [Postnups & Cohabitations: The Benefits of Financial Clarity](https://amf-divorce.com/our-blog/postnups-cohabitations-the-benefits-of-financial-clarity) August 09, 2025 We’ve all heard about prenups and often in the context of celebrities or [high-net-worth](https://amf-divorce.com/our-blog/navigating-a-high-net-worth-divorce-financial-insights) individuals trying to protect their fortunes. Postnups deserve attention too, and these agreements can provide... [CONTINUE READING](https://amf-divorce.com/our-blog/postnups-cohabitations-the-benefits-of-financial-clarity) ## [What Happens to Joint Accounts, Credit Cards, and Debt in Divorce?](https://amf-divorce.com/our-blog/what-happens-to-joint-accounts-credit-cards-and-debt-in-divorce) June 06, 2025 Some of the most common and emotionally charged financial concerns in divorce involve joint accounts, credit cards, and debt. These shared obligations can quickly become a source of confusion and... [CONTINUE READING](https://amf-divorce.com/our-blog/what-happens-to-joint-accounts-credit-cards-and-debt-in-divorce) ## [What to Include When Dividing Investments in Divorce](https://amf-divorce.com/our-blog/what-to-include-when-dividing-investments-in-divorce) May 05, 2025 For many divorcing couples, splitting investment accounts can be one of the most complex and emotionally charged aspects of divorce. These accounts are far more than numbers on a spreadsheet and... [CONTINUE READING](https://amf-divorce.com/our-blog/what-to-include-when-dividing-investments-in-divorce) ## [Empowering Clients and Attorneys in High-Conflict Divorce Cases: The Role of a CDFA](https://amf-divorce.com/our-blog/empowering-clients-and-attorneys-in-high-conflict-divorce-cases-the-role-of-a-cdfa) January 02, 2025 Navigating the financial complexities of divorce can be one of the most challenging aspects of the whole process. This is especially true in high-conflict cases, where disagreements over financial... [CONTINUE READING](https://amf-divorce.com/our-blog/empowering-clients-and-attorneys-in-high-conflict-divorce-cases-the-role-of-a-cdfa) ## [Preparing for Divorce During the Holidays: Making Smart Financial Decisions](https://amf-divorce.com/our-blog/preparing-for-divorce-during-the-holidays-making-smart-financial-decisions) November 04, 2024 Going through a divorce is emotionally taxing on its own, but when the holidays are added to the mix, the challenges intensify. The season that's meant for celebration can quickly become... [CONTINUE READING](https://amf-divorce.com/our-blog/preparing-for-divorce-during-the-holidays-making-smart-financial-decisions) ## [The Importance of Financial Disclosures in Divorce](https://amf-divorce.com/our-blog/the-importance-of-financial-disclosures-in-divorce) October 02, 2024 Divorce is often accompanied by [emotional](https://amf-divorce.com/our-blog/managing-the-money-crazies-in-divorce-navigating-emotional-turbulence) and financial challenges. These dynamics can feel overwhelming, especially if informal agreements were made between you and your spouse. Despite any... [CONTINUE READING](https://amf-divorce.com/our-blog/the-importance-of-financial-disclosures-in-divorce) ## [Navigating a High Net Worth Divorce: Financial Insights](https://amf-divorce.com/our-blog/navigating-a-high-net-worth-divorce-financial-insights) May 02, 2024 As a financial professional working with individuals and families for over two decades, and specifically divorce for nearly 9 years, I've encountered numerous complex cases, especially when it comes... [CONTINUE READING](https://amf-divorce.com/our-blog/navigating-a-high-net-worth-divorce-financial-insights) ## [22 Questions to Ask a Financial Professional During Your Divorce](https://amf-divorce.com/our-blog/22-questions-to-ask-a-financial-professional-during-your-divorce) July 24, 2023 Going through a divorce can be an incredibly challenging and emotionally draining experience. The process of untangling your life from your former partner's can feel overwhelming, especially when it... [CONTINUE READING](https://amf-divorce.com/our-blog/22-questions-to-ask-a-financial-professional-during-your-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) ## [Property Division Values, Part 2: Non-Retirement Assets](https://amf-divorce.com/our-blog/property-division-values-part-2-non-retirement-assets) June 01, 2022 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/property-division-values-part-2-non-retirement-assets) ##### 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" : "We’ve all heard about prenups and often in the context of celebrities or high-net-worth individuals trying to protect their fortunes. Postnups deserve attention too, and these agreements can provide financial clarity and support for a marriage even after the vows, or offer a clear foundation in a new relationship after divorce. As a Certified Divorce Financial Analyst, I work with clients at every stage of the relationship lifecycle, from preparing for marriage, navigating divorce, cohabiting with new partners, to planning second or third marriages. In my work, I’ve helped clients understand that clarity around money in relationships isn’t just protection, it can even be a form of connection. When we’re honest about our financial realities, needs, and expectations, we give our relationships a chance to thrive with clarity instead of confusion. In this post, I’ll share more about how these realities look in real life and examine how these decisions play out in the real world. Financial Planning is Essential for Second Marriages Prenuptial and postnuptial agreements often get a bad reputation, but when created thoughtfully, they can be powerful tools for building trust and long-term stability. I’ve worked with couples entering second marriages who want to protect what they’ve built and support each other’s futures. In one case, a retired, financially secure man partnered with a woman coming out of a difficult divorce and working long hours to rebuild her retirement. They didn’t want a one-sided agreement and they designed a plan that honored both of their needs. Through financial planning, I helped provide the financial information they needed to help create a prenup that reflected mutual respect and shared goals. We mapped out what she needed to feel secure and what he felt comfortable providing if the marriage didn’t last. The result was that she was able to reduce her hours, take a sabbatical, and ultimately pivot to a more fulfilling career. A well-crafted prenup doesn’t prepare a couple for failure, but it builds a stronger, more intentional partnership. Cohabitation and Knowing Where You Stand More couples today are choosing to live together without getting married, especially after a divorce. While cohabitation might feel more flexible or low-pressure, it still carries serious financial implications, particularly if you’re moving into a partner’s home. If you’re not on the title, have no formal agreement, and are contributing to expenses or home improvements, you may have little to no legal protection if the relationship ends. These risks aren’t limited to one gender or income level. No matter who you are, it’s important to understand your financial rights, set clear expectations, and protect your future, because cohabiting without a plan can be just as risky as marrying without one. More young couples are embracing traditional gender roles, with one partner, often the woman stepping away from paid work to care for the home or future children. Sometimes this happens without marriage, and while everyone has the right to choose the lifestyle that works for them, it’s crucial to understand the financial risks involved. If you're financially dependent on a partner and you're not legally married, you may have little to no legal protection if the relationship ends. Understanding how money works in your relationship isn’t unromantic; it’s responsible. In fact, it's an act of self-respect and long-term care. Whether you’re planning a marriage, recovering from a divorce, moving in with a partner, or simply trying to avoid financial mistakes, you don’t have to go it alone. Postnups, prenups, mortgage planning and cohabitation agreements are tools that exist for a reason. Not to replace trust, but to support it. Not to assume the worst, but to build a clearer path forward. If you’re navigating any of these situations, I’m here to help. And if you’ve got adult children heading into relationships of their own, consider giving them the gift of financial clarity too. Contact me to learn more.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "09/08/2025", "datePublished" : "09/08/2025", "headline" : "Postnups & Cohabitations: The Benefits of Financial Clarity", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/Couple-with-Advisor-Resized.jpg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/postnups-cohabitations-the-benefits-of-financial-clarity", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Some of the most common and emotionally charged financial concerns in divorce involve joint accounts, credit cards, and debt. These shared obligations can quickly become a source of confusion and long-term financial stress if not handled carefully. As a Certified Divorce Financial Analyst (CDFA), I often help clients strategically navigate and provide clarity in these divorce situations. In this post, I discuss how you could approach these assets and liabilities as you move through divorce, and how you might protect your financial future in the process. Joint bank accounts Joint accounts offer simplicity and transparency during a marriage. Regardless of which spouse contributes more income, both parties typically have equal access and ownership. That equality, however, becomes complicated once divorce proceedings begin. Courts often treat joint account balances as marital property, and unilateral withdrawals, especially large or unexplained ones, can reflect poorly on the withdrawing party. If you suspect your spouse may misuse joint funds, work with your attorney to freeze or monitor the accounts. At a minimum, start keeping detailed records of all deposits, withdrawals, and transfers, especially if any funds are used for separate obligations like legal retainers or housing costs. Opening your own individual checking account early in the process is a smart, proactive move. Eventually, you’ll need it anyway for receiving income and managing post-divorce expenses. It’s also a step toward regaining a sense of financial independence. Clear communication during this time is critical. If you anticipate a change in income or household bills, make your spouse aware of it, and ideally document the agreement in writing. Many divorcing couples continue using their joint accounts during the divorce process, especially to pay ongoing household expenses, as long as both parties cooperate and neither is at risk of financial harm. Joint credit cards Shared credit cards can be trickier. Even if your divorce decree states that your spouse is responsible for the joint credit card, the credit card company doesn’t care. If your name is on the account, you're still legally responsible. Therefore, consider addressing joint credit cards more aggressively in your proceedings and decree. Failure by either party to make payments can hurt both credit scores and that is something you’ll want to avoid, especially if you plan to refinance, buy a home, or secure a car loan, post-divorce. Try to keep your credit utilization below 50% of the card’s limit, and pay down balances where possible. Ideally, joint credit cards should be paid off and closed along with finalizing your divorce. If closing the account immediately isn’t an option, request that the account be frozen to prevent further charges and ask the creditor for written confirmation. You might also consider transferring joint balances to individual cards, so responsibility is clearly divided. These steps can, and should, be incorporated into your divorce decree. Mortgages, auto loans, and other debt Mortgages, car loans, and personal loans are often co-signed, meaning both spouses are equally liable, regardless of what the divorce decree says. If one spouse is keeping the home or the vehicle, the loan should ideally be refinanced in that person's name. Refinancing or completing a formal loan assumption removes the non-responsible spouse from the obligation and protects their credit and borrowing power. If refinancing isn’t possible, selling the asset and dividing the proceeds may be the cleanest option. Be sure to weigh tax implications before finalizing any decisions. For assets that one spouse retains (like the marital home), make sure there’s a written agreement regarding who will make payments and when. Structure and clarity help prevent confusion, missed payments, or future litigation. Is the debt really joint? Not all debt is created equal, or truly shared. Review your credit reports and account statements closely. A debt is typically considered joint if both names appear on the statement or both parties are listed on the credit report. In contrast, if you’re just an “authorized user,” you can usually be removed without affecting the original account holder. That said, don’t rush to close accounts if you need access to credit soon (for example, to refinance a home). Closing accounts can temporarily lower your credit score, which could complicate your financial goals. However, if there’s risk of misuse, closing accounts may still be the best choice. Consider making at least the minimum payments on all debts during the divorce, even if a particular bill isn’t technically yours. Debt division in divorce varies by state. In general, courts look at factors such as: Who incurred the debt and for whose benefit? Was the debt used for marital expenses or something separate? Is the debt tied to an asset that one spouse will keep? Do either party’s income or financial needs play a role? A CDFA can help you model different division scenarios to understand how they’ll affect your long-term financial health. Proactive step to take During or even prior to your divorce negotiations, take these important steps to understand more about your joint account, debt, and credit situation: Get a full credit report: This gives you visibility into all debts, both joint and individual. Document payments: Especially those made toward joint debt while separated. Engage a financial professional: A CDFA can help you build a forward-focused plan that prioritizes stability, liquidity, and credit health. After the Divorce: Final Financial Housekeeping Once the divorce is finalized, you usually want to tie up financial loose ends promptly by: Closing or updating all accounts per your agreement. Monitoring your credit for any surprise liabilities. Executing all title changes and transfers to avoid lingering obligations. The more proactive and thorough you are during the divorce, the smoother your post-divorce financial life will be. Dividing joint accounts, credit cards, and debt is rarely straightforward, but with the right strategy and support, it doesn’t have to derail your financial future. Whether you're in the early stages of separation or wrapping up your settlement, working with a CDFA can help you understand the real impact of each financial decision and lay the groundwork for lasting stability. Contact me to learn how I can help.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "06/06/2025", "datePublished" : "06/06/2025", "headline" : "What Happens to Joint Accounts, Credit Cards, and Debt in Divorce?", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-fMCIZ6-300x200.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/what-happens-to-joint-accounts-credit-cards-and-debt-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" : "For many divorcing couples, splitting investment accounts can be one of the most complex and emotionally charged aspects of divorce. These accounts are far more than numbers on a spreadsheet and usually represent years of planning, sacrifice, and shared goals. From a Certified Divorce Financial Analyst’s (CDFA’s) perspective, the key to a smooth division lies in proactively dividing these assets with clarity. One of the most important and overlooked steps in this process includes making sure the language in your settlement agreement accurately reflects what’s being divided, how it’s being transferred, and when to expect those transactions. In this post, we’ll dive into these specifics. Why Clear Language Matters in Investment Division Settlement agreements are legal documents, and vague or missing language can have both financial and legal consequences. Ambiguity about which investments are being transferred, how they’re being divided, or who bears responsibility for gains and losses can spark unnecessary conflict even years after your settlement. Clarity helps protect everyone involved. It helps prevent the stress of future disagreements, reduces the chance of enforcement issues, and supports a cleaner financial break, which is what most people are hoping for when they finalize a divorce. Make the Transfer Method Explicit Even beyond what is being transferred, it’s critical to determine how it’s being transferred, and the latter matters more than you may recognize. Cash versus Investments Clarifying whether one person receives a specific dollar amount, or whether a portion of the investment portfolio itself is transferred is critical to a smooth division of assets. This decision affects more than just paperwork and also can impact: Taxes: Selling investments to create cash may trigger capital gains. Liquidity: Cash might be needed for immediate expenses, but holding investments could support long-term growth. Growth Potential: Transferring investments “in-kind” allows them to continue compounding without disruption. These details should be discussed and documented before finalizing the agreement so expectations are aligned and execution is smoother. Key Elements to Include in Your Settlement Agreement When cash is being transferred as part of a divorce settlement, it’s important to include clear, specific instructions in the agreement. Start by setting a firm deadline for when the funds must be delivered. Then, define exactly how the transfer will take place. If the funds will be moved electronically, specify the account and custodian to ensure there’s no confusion. If a physical check will be issued instead, include the name of the recipient and the correct mailing address. It’s also wise to account for potential timing delays because transfers around weekends, holidays, or bank processing windows can slow things down. Building in a little cushion around timing can help prevent unnecessary stress. If Investments are Being Transferred: Use specific terminology to avoid future disputes. Three common items that should be included if transferring investments are: In-Kind Transfer: Specific investments (not cash) are moved “as-is” to the recipient’s account. This means the exact securities, the same number of shares or same positions, change hands without being sold. For clarity, it might be helpful to add that the cost basis (how much the investment was originally purchased for) will also transfer with the investment because this will play a role later whenever the investment is sold in the future. Pro-Rata Transfer: This means that each investment in the portfolio is divided proportionally based on the agreed-upon percentage of division in your final divorce agreements. Sometimes these amounts are listed in written agreements as percentages. If the division amount is listed as a dollar amount, then you will need to calculate what the percentage is based on the dollar amount agreed upon (effectively the dollar amount agreed upon divided by the account value multiplied by 100). This approach ensures fairness by preventing one party from choosing only the highest-performing assets. Gains and Losses: One often-overlooked detail in written agreements describing the division of investments is whether market gains or losses that occur between the date of the agreement and the actual date of transfer should be included or excluded. This can significantly impact what each party ultimately receives. For instance, if someone is awarded $100,000 from an account valued at $500,000, are they receiving a fixed dollar amount, or are they entitled to 20% of the account no matter what that value happens to be at the time of transfer? This distinction becomes especially important during periods of market volatility. Clearly outlining how to handle gains and losses helps maintain fairness and manages expectations on both sides, reducing the risk of disputes after the agreement is finalized. The Role of a CDFA A CDFA can be an invaluable partner throughout this process. While a CDFA doesn’t provide legal advice, a CDFA can help you: Assess tax implications of different transfer strategies Understand which assets to keep vs. liquidate Plan with an eye toward long-term financial goals, not just immediate needs Bringing a CDFA into the conversation early can help you avoid costly mistakes, feel more confident in your decisions, and navigate the process with greater clarity. When it comes to investments, details make all the difference. Taking the time to clearly define how accounts will be divided, and documenting that in your agreement, can prevent future misunderstandings and reduce stress post-divorce. Whether you’re in the early stages of negotiation or finalizing your settlement, consider bringing a CDFA into the conversation. Getting the support you need from the right professionals throughout your divorce can help your future feel a little less uncertain. Contact me today for a free consultation.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "05/05/2025", "datePublished" : "05/05/2025", "headline" : "What to Include When Dividing Investments in Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-IC3Cpl.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/what-to-include-when-dividing-investments-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" : "Navigating the financial complexities of divorce can be one of the most challenging aspects of the whole process. This is especially true in high-conflict cases, where disagreements over financial matters can escalate to court proceedings. As a Certified Divorce Financial Analyst (CDFA), my role is not only to provide support to clients during the divorce process but also to equip attorneys with expert analysis and testimony that strengthens their case. In this blog, we’ll discuss how expert financial services can support clients and attorneys, particularly in high-conflict situations. Providing Expert Analysis and Testimony In cases where litigation is inevitable, attorneys need sound financial evidence to present to judges. This is where expert reports and testimony come into play. Some of the following are examples of assistance : Evaluating post-decree scenarios for spousal support termination: Assessing the financial implications of terminating spousal support at the payor's retirement, considering factors like Social Security timing, future financial stability of each party, among other factors. Assess post decree evaluations surrounding gains and losses attributable to asset division. Evaluating post decree financial review to determine the likelihood of undisclosed assets during initial divorce proceedings. Valuing separate property and pension benefits: Establishing fair valuations to avoid ambiguous asset division. Analyzing annuity structures and benefits: Determining how annuities division limitations and impact to overall financial impact to each party post divorce. Expert insights can add to a compelling attorney narrative and help legal teams better advocate for their clients. Many judges and magistrates will require analysis from a financial expert in order to substantiate financial claims. Being a Partner in High-Conflict Cases Attorneys are increasingly encountering high-conflict divorces where financial disputes take center stage. Partnering with a CDFA ensures that attorneys have the financial expertise needed to navigate these challenges. Whether it’s delivering an expert report, providing testimony, or working directly with clients to evaluate their financial options before heading to an expensive court trial, my goal is to provide transparency and help clients feel more confidence during the divorce process. In high-conflict divorce cases, every financial detail matters. Attorneys and clients benefit greatly from having a CDFA on their team, a professional who can deliver comprehensive financial analyses and testify as an expert when necessary. In addition, clients gain peace of mind knowing that their financial future is in capable hands. If you’re an attorney handling high-conflict cases, let’s discuss how I can support your team and your clients through expert analysis and testimony. Together, we can ensure that every financial detail is accounted for, paving the way for a more equitable resolution.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "02/01/2025", "datePublished" : "02/01/2025", "headline" : "Empowering Clients and Attorneys in High-Conflict Divorce Cases: The Role of a CDFA", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-jPmFyp-2048x1365.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/empowering-clients-and-attorneys-in-high-conflict-divorce-cases-the-role-of-a-cdfa", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Going through a divorce is emotionally taxing on its own, but when the holidays are added to the mix, the challenges intensify. The season that's meant for celebration can quickly become overwhelming, leaving you juggling family commitments, legal preparation, and financial stress. However, with careful planning and smart financial decisions, you can set yourself up for greater stability and start the new year on the right foot. In this post, we’ll explore practical tips to help you prepare financially for divorce, all while managing holiday obligations. Assess Your Current Financial Situation One of the first steps to preparing for divorce is understanding where you stand financially. Take stock of your assets, debts, bank balances, credit card accounts, and loans. Knowing your financial baseline will help you understand the financial decisions you need to make in both the short and long term. Divorce is a complex process; start thinking about the professionals you’ll need to guide you. A Certified Divorce Financial Analyst (CDFA) can help you create a solid financial strategy that aligns with your goals during and after divorce. They can assist in managing everything from asset division to long-term financial planning, helping you prepare for a secure financial future. Create a Holiday Budget Divorce often requires a reassessment of your financial priorities, and the holiday season is no exception. With legal fees and upcoming changes to your household income, it’s important to adjust your expectations and create a holiday budget that reflects your current circumstances. Consider aligning with your spouse on holiday spending, if possible. This can minimize conflict and ensure you don’t overspend due to emotional triggers. Focus on prioritizing essential expenses—gifts for children and basic holiday meals—while cutting back on non-essential spending such as lavish parties or unnecessary travel. To help you stay on track, use a budgeting app to monitor your purchases and ensure you stick to the plan. Be mindful of emotional spending during this time. It’s easy to justify splurging on gifts or activities to make up for the emotional strain your children (or you) might be feeling. However, this can lead to further financial stress. Stay disciplined and look for low-cost or free alternatives to create meaningful holiday experiences, like spending quality time together or organizing simple, family-friendly activities. Protect Your Credit Credit will impact your financial independence after the divorce, especially if you’re planning to buy a new home or car. During the holidays, keep a close watch on your bank and joint accounts, particularly as seasonal spending increases. Joint credit cards and lines of credit can be problematic during a divorce, as both parties are responsible for any debts incurred. If possible, consider closing or freezing joint accounts to avoid future liabilities. This step can help you gain greater control over your finances and prevent unexpected charges. Freezing accounts if preferred because, in some cases, closing accounts can hurt your credit score. Regularly monitor your credit score during this time. Make sure there are no surprise purchases that could negatively impact your credit standing, especially when emotions are running high. Protecting your credit now will make a significant difference when you begin your post-divorce financial life. Consider the Tax Implications of Your Divorce Timeline Taxes may not be the first thing on your mind during the holidays, but they play a vital role in your divorce planning. The timing of your divorce can have a major impact on your tax obligations. You might be wondering whether you file jointly for the current year, or separately, and how alimony or child support will affect your taxes. It’s a good idea to consult with both financial and tax professionals before the year ends. They can help you assess your tax situation and guide you on the best course of action. Early planning will allow you to avoid any unpleasant surprises when tax season arrives, making the transition to your post-divorce life smoother. Plan for Your Financial Future The holidays are a time for reflection and new beginnings, and this can also apply to your financial future. Start thinking about your short- and long-term financial goals. Rebuilding savings, reassessing retirement plans, and setting new budget priorities are key steps to ensure a financially secure life post-divorce. Now is also the time to establish independent credit, if you haven’t already. Understanding your current credit score and finding ways to build or improve it will make your transition smoother. Looking ahead, consider how you’ll manage holiday expenses in future years. Start putting money into a fund throughout the year to cover seasonal costs, allowing you to celebrate without overspending. Reimagine holiday traditions to reflect your new financial reality, setting expectations that align with your post-divorce life. The holidays will look different when you’re preparing for a divorce, and it’s important to acknowledge the unique challenges you’re facing. By taking control of your financial situation and making smart decisions now, you’ll reduce some of the stress that comes with this major life transition. Proactive financial planning will allow you to enter the new year, and your new life, with greater clarity and confidence. Take the time to assess, adjust, and plan so that you can focus on what really matters during the holiday season—your well-being and the well-being of your loved ones. Contact us with your financial questions during this time of transition.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "04/11/2024", "datePublished" : "04/11/2024", "headline" : "Preparing for Divorce During the Holidays: Making Smart Financial Decisions", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-dRzF37-300x200.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/preparing-for-divorce-during-the-holidays-making-smart-financial-decisions", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Divorce is often accompanied by emotional and financial challenges. These dynamics can feel overwhelming, especially if informal agreements were made between you and your spouse. Despite any pre-existing arrangements, financial disclosures during divorce are critical because they ensure transparency and protect both parties from future legal complications. In this post, we’ll explore why financial disclosures are required, how they safeguard both parties, and how they can prevent costly conflict down the line. Understanding Financial Disclosures In the divorce process, both you and your spouse are required to provide a comprehensive list of your financial information. This includes: Income: Salary, bonuses, and other sources of income. Expenses: Current living expenses, taxes, payroll deductions. Assets: Real estate, personal property, savings, retirement accounts, trusts, and business interests. Debt: Any existing liabilities such as mortgages, credit card debts, or loans. These disclosures provide a full financial picture and become the foundation for a fair division of assets as well as supporting information to base decisions upon. They are required for transparency and without them, one party may hide assets or income, which could lead to unequal settlement. Disclosures also serve to prevent future legal disputes, helping both you and your spouse understand the financial implications of your decisions. It’s somewhat common for couples to make informal financial arrangements during their marriage or separation, such as, I won’t touch your trust fund, or “You can keep the family business.” While these agreements might reduce conflict and complications at the time, they can create issues as the divorce moves forward. Informal agreements don’t always align with legal obligations, and in some cases, may even conflict with laws governing the division of marital assets. Financial disclosures make it easier for you and your spouse to consider all relevant information, and prevent either party from being disadvantaged due to an incomplete understanding of financial circumstances. Creating Financial Transparency By making financial disclosures, each party can be fully aware of the assets and liabilities at stake during divorce negotiations. This financial transparency reduces the likelihood of disputes after the divorce is finalized. When both spouses fully understand the financial landscape, there’s less chance that one will attempt to reopen the case due to an oversight. If disclosures are messy, individuals can discuss with an attorney if there are grounds to revise their decisions based on new information. This could result in additional costs, time, and stress for everyone involved. For example, one spouse may initially agree to forgo interest in a family trust but change their mind. Similarly, after consulting a financial expert, one spouse may realize they were unaware of certain property rights and the impact is has on either party’s situation moving forward. Considering Valuations Attorneys and financial professionals play a critical role in divorce proceedings, often recommending independent valuations of significant assets like businesses or trusts. These valuations support an accurate division of assets based on their current worth. Valuations can also clarify the financial implications of informal agreements. For instance, if one spouse initially agrees not to claim any interest in a business, a proper valuation may reveal that the business is more valuable than they realized, leading to a reconsideration by the party who previously had no interest. When extended family members are involved, financial disclosures can sometimes cause tension. For example, a spouse may initially express no interest in a family trust, only to change their mind after a better understanding of the situation. This can create friction, particularly if family members, such as in-laws, are reluctant to provide financial details or cooperate with the valuation process. In the long run, families often benefit from transparency, as it prevents disputes and protects both sides from future legal complications. In rare cases, there may be reasons not to disclose certain information immediately. For instance, if a spouse expects a large bonus or promotion, they may wish to follow their attorney’s advice on whether or when to disclose that information. Family business agreements should also be carefully reviewed with an attorney to determine what must be disclosed and what can be kept confidential. Financial disclosures are an essential part of the divorce process. They support transparency, can protect both parties from future disputes, and contribute to fair financial agreements. While informal agreements can complicate matters, formal disclosures and the guidance of financial and legal professionals help both parties avoid costly mistakes. Financial professionals can help with valuations and financial disclosures during divorce proceedings. They work alongside your attorney to ensure you are fully informed, educated, and protected throughout the process. Reach out to A.M. Financial or other Certified Divorce Financial Analysts to ensure you are making the best financial decisions during your divorce.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "02/10/2024", "datePublished" : "02/10/2024", "headline" : "The Importance of Financial Disclosures in Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-DvnTO4.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/the-importance-of-financial-disclosures-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" : "As a financial professional working with individuals and families for over two decades, and specifically divorce for nearly 9 years, I've encountered numerous complex cases, especially when it comes to splitting assets and income streams in a high net worth divorce. Unlike typical divorces, where the division of assets may involve a house, a car, and some savings, these divorces often include a portfolio of financial holdings, from real estate to various investment vehicles, and complex compensation structures. In this blog post, I provide insights on the unique challenges and considerations involved in navigating the financial landscape of high net worth divorces. Complex Assets and Income Structures One of the defining characteristics of a high net worth divorce is the complexity of assets and income. From multiple real estate properties to various investment portfolios, including both traditional assets and emerging investments like cryptocurrency, each investment comes with its own tax implications, liquidity considerations, and risk profiles. Additionally, executives or business owners may have compensation packages comprising of stock options, restricted stock units, and deferred compensation, adding layers of intricacy to determining current and future income streams and property considerations. Specifically, complexity often arises in the following ways: Determining separate versus marital property: This may require historical reporting, review of trusts, or analyses of prenups. Valuing assets: You may need to hire additional professionals such as appraisers and tax specialists, and conduct valuations. A discovery process, or search for hidden assets, may require a forensic accountant. Business Valuations and Retirement Accounts In high net worth divorces, businesses owned by you or both you and your spouse often require thorough valuations, which can be both costly and time-consuming. You may have invested capital in other businesses as well, through venture capital or other investment structures. Similarly, retirement accounts, possibly spanning several types and structures, require professional assessment for equitable division. Inheritances, Trusts, and Income Streams Determining the marital or separate nature of inheritances or assets held in trusts adds another dimension to the asset division process and always requires oversight from an experienced family law attorney. In some cases, high net worth individuals may have multiple income streams that are taxed differently. These dynamics are best assessed by a team of professionals, including tax and financial experts, in an effort to provide you with a comprehensive understanding of each source and its implications for post-divorce financial stability. Time and Conflict Unlike conventional divorces, which typically conclude within six months, high net worth divorces often extend over one to two years or longer due to the complexity of financial arrangements. Gathering documentation, conducting due diligence, and valuing assets require meticulous attention to detail and may involve engaging additional professionals such as appraisers and forensic accountants. Addressing any unmet financial needs during this extended process can also be stressful and become timely and expensive. This will likely take an emotional toll on you, your family, and could negatively impact your career and/or social life. Spousal Support and Retirement Planning Spousal support in high net worth divorces falls outside of spousal support calculation norms, encompassing various income sources beyond wages, such as rental income and investment dividends. Therefore, property division can feed into the support considerations. Furthermore, if you are in your 50s or older, retirement planning takes precedence, resulting in a thorough evaluation of future income sources and asset allocation, which can result in financial security in later years. The Importance of a Divorce Team Given the multifaceted nature of high net worth divorces, assembling the right divorce team is important. In addition to experienced legal counsel, enlisting the expertise of financial planners, tax specialists, and divorce coaches can help streamline the process and minimize conflict. Effective communication and collaboration among team members helps navigate the complexities inherent in high net worth divorces. High net worth divorces present financial challenges that require careful navigation and expert guidance. By understanding the complexities of asset division, income assessment, and long-term financial planning, you can work towards equitable resolutions while safeguarding your financial future. With the right support system in place, your high net worth divorce process can accelerate a smooth transition to the next chapter of life. We assist in resolving the financial aspects of high net worth divorces. Contact me, Amy Melander, CFP®, CDFA®, for a free consultation to learn more about our services.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "02/05/2024", "datePublished" : "02/05/2024", "headline" : "Navigating a High Net Worth Divorce: Financial Insights", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-PzTegD-768x512.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/navigating-a-high-net-worth-divorce-financial-insights", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Going through a divorce can be an incredibly challenging and emotionally draining experience. The process of untangling your life from your former partner's can feel overwhelming, especially when it comes to making crucial financial decisions. Having trusted professionals to lean on during this difficult time can make all the difference. In particular, a financial divorce professional, such as a Certified Divorce Financial Analyst (CDFA®) or a Certified Financial Planner (CFP®), can provide invaluable guidance and expertise to help you navigate the complexities of your divorce. In this blog post, we will outline essential questions to ask your financial professional and explore key topics to consider as you assess the impact of your divorce on your current and future financial situation. By arming yourself with the right knowledge and support, you can approach the financial aspects of your divorce with confidence, and make informed decisions for your future. Protecting Finances Protecting your finances during a divorce can significantly improve your financial stability and future well-being. Being proactive in safeguarding your assets, income, and financial interests is crucial in this process. The sooner you start thinking about protecting your finances and taking action, the better. In fact, taking steps toward financial protection can even occur before you file for your divorce. By engaging a knowledgeable financial professional with experience in divorce cases, you can gain valuable insights and guidance on how to navigate the financial aspects effectively. To understand whether you're on the right track, consider asking the questions such as: What steps should I take to protect my finances during the divorce process based on my unique situation? How will my retirement savings be affected by the divorce, and what steps should I take to secure my future retirement? What steps can I take to document and establish the value of my assets to prevent any undervaluation? What options should I consider if I am worried my ex-spouse will overspend during this time? What options should I consider if I don’t want to incur any more debt during the divorce process? How should I handle joint bank accounts and shared credit cards to protect my assets? What should I do now to start establishing my own financial identity? By seeking expert advice and asking the right questions, you can make informed decisions that safeguard your financial well-being during and after the divorce process. Division of Assets The division of assets is a critical aspect of the divorce process, as it determines how property and possessions acquired during the marriage will be divided between the parties involved. Generally, marital property is divided equitably and includes assets acquired during the marriage, such as the family home, vehicles, investments, and joint bank accounts. On the other hand, separate property is usually awarded to one party and typically consists of assets owned before the marriage or acquired through inheritance or gifts. Determining what assets are marital versus separate may require assistance from an attorney. Is a Divorce in Your Future? Get Prepared with These Essential Tips. Assets may be divided equally or in a way that is deemed fair and equitable based on various factors including your state of residency. Consulting a financial advisor who specializes in divorce can be invaluable during this process. Some questions to ask regarding the division of assets may include: How will the division of assets and liabilities affect my long-term financial goals? Can you help me analyze the long-term financial impact of keeping certain assets versus accepting alternative options during the divorce settlement? What are the financial implications of keeping or selling the marital home? What should I consider when determining the value of investments, including stocks, bonds, and other assets? How can I protect my investments and how are any pensions, retirement accounts, or other employer benefits earned during the marriage handled during the divorce process? What should I know about any outstanding debts or joint liabilities with my ex-spouse? Are there any potential risks or consequences I should be aware of when transferring assets to new beneficiaries? How can I protect my retirement accounts, such as pensions or 401(k)s, from being unfairly divided? By seeking expert advice, you can navigate the complexity of asset division with clarity and protect your financial interests throughout the process. Tax Implications Divorce can bring significant changes from a tax liability perspective, and it's crucial to understand the implications on your financial situation. Following a divorce, your filing status will likely change from married filing jointly to single or head of household. This change can affect your tax bracket, deductions, and credits, potentially altering your overall tax liability. It's essential to comprehend how divorce decisions, such as the division of assets, can impact your taxes. Tax liability can change the amount of money available to you after your divorce, as certain scenarios may result in unexpected tax burdens or opportunities for tax savings. When consulting with a financial professional during your divorce, it's important to ask specific questions related to taxes, such as: What are the tax implications of the settlement options I am considering? Are there any tax strategies I should consider during the divorce process? What specific tax considerations or liabilities should I be aware of when dividing assets and liabilities with my ex-spouse? How will my filing status change during and after the divorce, and what are the tax implications associated with each filing status? What are the tax implications of paying/receiving alimony or child support payments, and how should I plan for these payments? Are there any tax deductions or credits I may be eligible for as a result of the divorce, such as the child tax credit or child care credit? If so, what do I need to know about how to structure agreements to qualify and maximize tax credits? Should I consider adjusting my withholding or estimated tax payments due to changes in my financial situation during and after the divorce? Seek guidance from a knowledgeable financial professional, so you can make informed decisions that minimize your tax burden and maximize your financial well-being post-divorce. In the complex and emotionally-charged process of divorce, seeking guidance from a qualified financial professional is paramount to safeguarding your financial future. By asking the right questions and addressing key areas such as protecting your finances, dividing assets, and understanding tax implications, you can navigate the divorce process with confidence. At A.M. Financial, we can help you make informed decisions that align with your long-term goals. Contact us today to schedule a consultation.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "24/07/2023", "datePublished" : "24/07/2023", "headline" : "22 Questions to Ask a Financial Professional During Your Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-oBtQaY-300x200.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/22-questions-to-ask-a-financial-professional-during-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" : "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" : "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 skew the end results? Ignoring the financial components of a divorce settlement and the effect on your future is similar to playing slot machines in Vegas – hope to win, but there is a chance you will leave with a lot less than you came with and anticipated losing. In the first part of this series, retirement account valuation blunders were addressed when utilizing a 50-50 division approach. Here, we will examine non-retirement investments and what factors can alter the outcome down the road. Home equity and rental property will be outlined in upcoming posts. Part 2: Non-Retirement Investments Investments outside of the retirement category vary widely from checking accounts, certificates of deposits (CD), brokerage or mutual fund accounts, land, rental property, commodities such as gold, fine art, antique car collections, business ownership, etc. Are they all created equal? Or are they apples and oranges? Each asset previously listed is unique. The growth potential and place in an overall investment strategy differs drastically. Although these investments are not tax sheltered like retirement accounts, they are still subject to taxes in a different manner. When utilizing a 50-50 division of property approach during settlement, is awarding a $100,000 CD to Anna and $100,000 worth of Amazon stock to John realistic to rely upon for post-divorce results? Shortly after finalization, John sold the Amazon stock and used the proceeds to purchase a new home. The following April, he had an additional $12,000 tax bill because the stock was purchased 10 years prior for $20,000, so he realized a $80,000 capital gain that created a $12,000 tax bill. Anna was able to use her $100,000 for tuition to go back to school and help her parents with medical expenses over the following two years while only incurring $100 in additional taxes – a big difference! However, if Anna and John didn’t have current cash needs the end results would look very different in 10 years. Anna was never involved with the finances and making those types decisions made her nervous. During the next 10 years she left the $100,000 in a CD that ended up being worth $101,004 (based on today’s interest rates). John had a brother who worked at Amazon who encouraged John to keep the Amazon stock. Without purchasing additional Amazon stock, after 10 years it was worth nearly $260,000 because it grew an average 10% per year – more than a 150% difference! Conclusion The financial results that individuals experience post-divorce can be significantly distorted when a 50-50 division of property concept is solely relied upon. It is critical to understand financial components, your priorities and how suggested division plans affect your bottom line in the future. Financial education and professional analysis 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" : "01/06/2022", "datePublished" : "01/06/2022", "headline" : "Property Division Values, Part 2: Non-Retirement Assets", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/e261dd_d28e6554adb0418a812e7205893dd778~mv2.webp", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/property-division-values-part-2-non-retirement-assets", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ```