--- title: Our Blog - AMF Divorce | Divorce Budgeting description: Divorce Budgeting | 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 # Divorce Budgeting ## [Real Estate in Self-Directed IRAs: Hidden Risks in Divorce Settlement](https://amf-divorce.com/our-blog/real-estate-in-self-directed-iras-hidden-risks-in-divorce-settlement) July 01, 2026 Self-directed IRAs are not something that comes up in every divorce, but when they do, they tend to catch people off guard. The account may appear straightforward on paper as a [retirement asset](https://amf-divorce.com/our-blog/retirement-accounts-divorce-what-to-expect) with... [CONTINUE READING](https://amf-divorce.com/our-blog/real-estate-in-self-directed-iras-hidden-risks-in-divorce-settlement) ## [Child Support Changes in 2026: The Financial Impact](https://amf-divorce.com/our-blog/child-support-changes-in-2026-the-financial-impact) March 22, 2026 Colorado updates its child support laws regularly, but the changes that happened in 2025 and will go into effect in 2026 are more than minor adjustments. From how parenting time credits are... [CONTINUE READING](https://amf-divorce.com/our-blog/child-support-changes-in-2026-the-financial-impact) ## [Post-Settlement Financial Support](https://amf-divorce.com/our-blog/post-settlement-financial-support) December 02, 2025 For many people, the hardest part of divorce seems like the negotiation itself, and sorting through assets, discussing support, weighing options, and finally reaching an agreement. But as a [CDFA](https://amf-divorce.com/our-blog/empowering-clients-and-attorneys-in-high-conflict-divorce-cases-the-role-of-a-cdfa),... [CONTINUE READING](https://amf-divorce.com/our-blog/post-settlement-financial-support) ## [Vocational Assessments in Divorce](https://amf-divorce.com/our-blog/vocational-assessments-in-divorce) November 12, 2025 When one spouse is unemployed, caring for children and household needs, or is viewed as being ‘under-employed’, a vocational assessment can play an important role in determining fair child and/or... [CONTINUE READING](https://amf-divorce.com/our-blog/vocational-assessments-in-divorce) ## [How to Plan for Divorce When You and Your Spouse Have Very Different Incomes](https://amf-divorce.com/our-blog/how-to-plan-for-divorce-when-you-and-your-spouse-have-very-different-incomes) July 10, 2025 Divorce is almost always emotionally and logistically complex and when there's a significant income gap between spouses, that complexity can intensify. The lower-earning spouse may be facing not only... [CONTINUE READING](https://amf-divorce.com/our-blog/how-to-plan-for-divorce-when-you-and-your-spouse-have-very-different-incomes) ## [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) ## [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) ## [Establishing Goals and Priorities for Your Divorce Before It Starts](https://amf-divorce.com/our-blog/establishing-goals-and-priorities-for-your-divorce-before-it-starts) February 02, 2024 If you’ve made the [decision to get a divorce](https://amf-divorce.com/our-blog/divorce-a-catalyst-for-change), you may wonder where to start the intricate and emotionally-charged process. Beginning with a clear understanding of your goals and priorities can... [CONTINUE READING](https://amf-divorce.com/our-blog/establishing-goals-and-priorities-for-your-divorce-before-it-starts) ## [Embracing the Benefits of Working After Divorce](https://amf-divorce.com/our-blog/embracing-the-benefits-of-working-after-divorce) November 02, 2023 Divorce can be a life-altering experience, especially for women who may find themselves contemplating working after retirement age or after a period of being a [stay-at-home mom](https://amf-divorce.com/our-blog/stay-at-home-moms-learning-to-budget-post-divorce). This [transition](https://amf-divorce.com/our-blog/reentering-the-workforce-mahlen-financial) can... [CONTINUE READING](https://amf-divorce.com/our-blog/embracing-the-benefits-of-working-after-divorce) ## [College Planning Concepts: 3 Things to Be Aware of When Divorcing](https://amf-divorce.com/our-blog/college-planning-concepts-3-things-to-be-aware-of-when-divorcing) October 19, 2023 Divorce is a life-altering event that affects not only your family dynamics but also your financial plans, especially when it comes to your child's education. Navigating the complexities of college... [CONTINUE READING](https://amf-divorce.com/our-blog/college-planning-concepts-3-things-to-be-aware-of-when-divorcing) - - [1](https://amf-divorce.com/our-blog) - [2](https://amf-divorce.com/our-blog/tag/divorce-budgeting/page/2) - [3](https://amf-divorce.com/our-blog/tag/divorce-budgeting/page/3) - [4](https://amf-divorce.com/our-blog/tag/divorce-budgeting/page/4) - ##### 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" : "Self-directed IRAs are not something that comes up in every divorce, but when they do, they tend to catch people off guard. The account may appear straightforward on paper as a retirement asset with a stated value, but what is ‘inside’ can change everything about how it needs to be handled. When the asset is real estate, the complexity multiplies quickly. These accounts show up most often among entrepreneurial couples or higher-net-worth households where one spouse has moved beyond traditional retirement investments and into alternative assets. If you are going through a divorce and a self-directed IRA is part of the marital estate, understanding what it actually is matters before any settlement decisions are made. In this post, we’ll review what you need to know about these accounts. What Is a Self-Directed IRA? A self-directed IRA, or SDIRA, functions like a traditional IRA in terms of its tax structure, but it gives the account holder control over a much broader range of investments. Rather than being limited to stocks, bonds, and mutual funds, a self-directed IRA can hold real estate, private placements, promissory notes, limited partnerships, and other alternative assets. That flexibility is the appeal. But it also comes with a strict set of rules that govern how those assets can be held, managed, and eventually distributed, and those rules do not pause for a divorce. How Real Estate Works Inside an SDIRA This is where the confusion often starts. When real estate is held inside a self-directed IRA, the IRA owns the property, not the individual. This has consequences that shape everything from how the property is managed day-to-day to how it can be divided in a settlement. Because the IRA is the legal owner, all expenses related to the property, including maintenance, taxes, repairs, and insurance, must be paid from IRA funds. Income generated by the property, such as rental income, goes back into the IRA. It cannot be paid directly to the account holder as personal income. For divorce purposes, this matters when considering what income is available for support calculations. Income flowing into the IRA is not the same as income in hand, and whether it can be considered for support purposes is a question an experienced divorce attorney will need to help answer. There is also a personal use prohibition. The account holder cannot live in the property, vacation in it, or use it in any personal capacity. The IRA holds it as a pure investment asset, and that line cannot be crossed without triggering serious tax consequences. Divorce-Specific Issues The first challenge in divorce is figuring out what the asset is actually worth, and with real estate inside an SDIRA, that is not as simple as pulling a property appraisal. An appraisal reflects market value, but it does not necessarily reflect what could realistically be received in a sale. Factors like limited liquidity, the restricted nature of the asset, and discounts for lack of marketability or control can all affect true value. A property that appraises at $400,000 may not net anywhere near that after the layers of restriction and costs associated with selling it out of a retirement account are considered. It is also worth watching for double-counting. In a divorce, retirement accounts and real estate are sometimes inventoried separately. If the real estate inside the SDIRA is captured as both a retirement asset and a real estate asset, the value is being counted twice, which can distort the picture of what is actually in the marital estate. Self-directed IRAs also carry strict rules around what are called prohibited transactions. The account holder cannot personally use the property, and unless real estate is their primary profession, they generally cannot perform repairs or management work on it themselves. Violating these rules can cause the IRA to lose its tax-advantaged status entirely, and divorce is not an exception. Unlike a brokerage account or a cash balance, you cannot simply split real estate inside an SDIRA in half. There is no easy mechanism to divide the asset between two parties, which means most resolutions come down to one spouse retaining the account, selling the property and dividing the proceeds, or offsetting the receiving spouse with other assets of comparable value. There is also a longer-term consideration. Once the IRA account holder reaches the required minimum distribution age, which is currently 73 for those who turn 73 before 2033, and 75 for those who reach that milestone afterward, distributions must begin. If the IRA's primary asset is illiquid real estate, meeting those distribution requirements may eventually require selling the property, whether the timing is favorable or not. A Real-Life Example Consider a couple where one spouse holds a self-directed IRA with a piece of commercial real estate inside it. The property has an appraised value of $450,000, and there is no mortgage. The IRA owns it free and clear. On paper, it looks like a $450,000 retirement asset to be divided. But a closer look reveals several complications. The property has been difficult to lease and sits partially vacant. A realistic sale in the current market would likely yield closer to $380,000 after costs, and the timeline to sell could stretch well beyond the divorce itself. The other spouse has been offered the property as part of their share of the marital estate in exchange for relinquishing claims on other accounts. Before accepting, they would need to understand that they cannot use the property personally, that all expenses must continue to be paid from IRA funds, that the IRA custodian must approve the transfer structure, and that eventual required distributions may force a sale. What looked like a clean asset to receive turned out to carry a set of restrictions and risks. Working Through This with the Right Support If a self-directed IRA holding real estate is part of your divorce, several things need careful attention before any agreement is reached. Questions to ask include: Has the asset been reviewed by someone who understands both SDIRA compliance rules and divorce financial planning? Has the property been valued with liquidity and marketability factors in mind, not just a standard appraisal? Has anyone confirmed there is no double counting of the asset in the marital estate inventory? Is a direct offset with other assets a cleaner path than attempting to transfer or divide the SDIRA itself? Has the account custodian been consulted about how a transfer incident to divorce would need to be structured? Are the required minimum distribution timelines relevant given the account holder's age, and what might that mean for the property long-term? Self-directed IRAs holding real estate are among the more complex assets that can appear in a divorce settlement. The stated value is rarely the whole story; the rules governing the asset are strict and do not bend for a divorce, and the path to dividing or transferring it requires coordination between the IRA custodian, a tax advisor, and a financial professional who understands how these accounts work in a divorce context. If this type of asset is part of your situation, getting the right people involved early, before a settlement is structured, is the most important step you can take. Contact me to learn more about how I can help bring clarity to the financial side of your divorce.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "01/07/2026", "datePublished" : "01/07/2026", "headline" : "Real Estate in Self-Directed IRAs: Hidden Risks in Divorce Settlement", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na2.net/hubfs/39875594/Imported_Blog_Media/qtq80-HpSslk-768x512.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/real-estate-in-self-directed-iras-hidden-risks-in-divorce-settlement", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Colorado updates its child support laws regularly, but the changes that happened in 2025 and will go into effect in 2026 are more than minor adjustments. From how parenting time credits are calculated to how medical expenses are handled, these updates can materially change cash flow for families navigating divorce or post-decree modifications. As a financial professional who works closely with people during divorce, I see firsthand how child support isn’t just a legal formula. It’s also a monthly budget reality. Understanding these changes now can help you plan more effectively and avoid unpleasant surprises later. In this post, we’ll detail what to expect from these changes. We highly suggest reviewing these changes with your legal counsel to get more information and determine if a modification or previous orders may be something for you to consider. Parenting Time Credits: Moving Beyond the 93-Overnight Cliff One of the most significant changes is the elimination of the old 93-overnight threshold. Under the prior system, a parent with 92 overnights received no credit at all, while a parent with 93 overnights suddenly received a meaningful reduction in support. From a financial standpoint, that “all-or-nothing” approach often made little sense. The new law replaces that cliff with a graduated scale. Parenting time credits now increase gradually based on the actual number of overnights a parent has, starting at zero and building up to a full credit at equal parenting time. This better reflects the real costs parents incur, including food, housing, clothing, transportation, and even when parenting time is limited. That said, the credit is not one-to-one. A parent with 25% of the overnights does not receive a 25% credit. The system recognizes that the majority parent still carries higher fixed costs, especially related to housing and daily expenses. Financially, this makes the calculation more nuanced and, in some cases, more contentious. Medical Expenses: Cleaner on Paper, More Interaction in Practice Another notable change affects extraordinary medical expenses. The prior $250 per-child annual threshold has been removed, meaning medical costs are now shared from the first dollar. This simplifies the math but increases the need for communication and reimbursement between parents, even for smaller expenses like co-pays. The definition of extraordinary medical expenses has also been expanded to clearly include things like therapy, orthodontia, vision care, and medical equipment. At the same time, the statute now clarifies that everyday items like bandages or over-the-counter medications are not included unless they’re medically recommended for a chronic condition. From a budgeting perspective, this means parents need clearer systems for tracking and documenting expenses and reimbursing one another. Without that structure, small costs can quietly add up, both financially and emotionally. Higher Income Thresholds and Updated Support Amounts The child support guidelines now apply to combined monthly incomes up to $40,000, up from $30,000. This brings more families under a predictable framework and reduces the need for discretionary extrapolation by the court. At the same time, the basic support schedules have been updated, including changes that affect lower-income parents and an overall increase in the combined support obligation shared between parents. For many families, this means recalculating expectations around monthly cash flow sooner rather than later. Alignment Between Child Support and Maintenance Finally, the law now harmonizes child support and spousal maintenance rules around income imputation. If a parent is caring for a child under 24 months, income generally will not be imputed for either calculation. This alignment removes a long-standing inconsistency and makes financial planning more coherent during early childhood years. What This Means Going Forward These changes apply to new child support orders and future modifications, not automatically to existing orders. But if a modification is on the horizon, these rules will shape the outcome. From a financial perspective, the takeaway is simple: child support is becoming more detailed, more individualized, and more sensitive to real-world costs. That makes preparation, budgets, cash-flow analysis, and long-term projections more important than ever. If you’re navigating divorce or considering a modification, understanding how these changes intersect with your financial picture can help you make smarter, more informed decisions for yourself and your children. Contact us to learn more about post-divorce budgeting and how you can be best prepared for these changes.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "22/03/2026", "datePublished" : "22/03/2026", "headline" : "Child Support Changes in 2026: The Financial Impact", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na2.net/hubfs/39875594/Imported_Blog_Media/qtq80-TPHjzr.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/child-support-changes-in-2026-the-financial-impact", "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 people, the hardest part of divorce seems like the negotiation itself, and sorting through assets, discussing support, weighing options, and finally reaching an agreement. But as a CDFA, I’ve learned that implementing those decisions is often just as challenging. The truth is that divorce does not feel complete simply because the papers are signed. A settlement is a roadmap, but someone still has to do the driving. For many people, that journey feels overwhelming, confusing, and emotionally exhausting, especially when navigating it alone. Post-settlement financial support can often make all the difference. With a clear plan, steady guidance, and someone to walk through each step with you, the transition becomes far more manageable. A knowledgeable partner who understands the financial implications of this stage of the process can help ensure that every detail is handled correctly, every requirement is met, and every decision aligns with your long-term financial stability. Why Post-Settlement Support Matters Even the cleanest, most straightforward divorce agreement requires careful follow-through. Clients often underestimate the sheer volume of tasks that come after the decree is entered, including opening new accounts, transferring investments, retitling assets, updating beneficiaries, establishing new insurance, and taking care of the dozens of small but important steps that make the financial transition complete. This work is particularly stressful because it comes at a time when people are often emotionally drained. It’s common for individuals to feel unsure where to begin, afraid of making a mistake, or simply too overwhelmed to keep track of the deadlines and documentation required. Post-settlement support fills that gap with someone who understands the agreement, knows the financial landscape, and can guide the process from start to finish. What This Support Looks Like in Practice Working with individuals after their divorce helps them carry out the financial terms of their settlement. The process is highly personalized. By creating a clear sequence of steps, clients can move through each one. This includes setting up new accounts, establishing online access, completing transfer paperwork, and making sure that every asset is moved and titled correctly. A large part of this work also involves making transfers in a tax-efficient way, which is something many people understandably struggle to navigate on their own. Much of the support is hands-on and can include joining clients on calls with financial institutions to help ensure nothing gets missed or mishandled. Confirming beneficiary changes, review account titling decisions, and walking clients through updates to credit cards, phone plans, insurance coverage, and other elements of financial life that are impacted by divorce are common steps. For many, the process also includes preparing for the purchase of a new home, which requires thoughtful planning around cash availability, timing, and asset transfers. For those who want continued guidance, long-term financial planning, budgeting, and investment management are helpful services. Some clients choose to work together beyond the immediate post-divorce period so they can build a more solid financial foundation for the next stage of their lives. A divorce settlement outlines the plan. But the real transformation happens when that plan is carried out with care, clarity, and attention to detail. Post-settlement financial support ensures that every step is handled correctly and that individuals can move forward with confidence and not confusion. If you or someone you know needs support implementing the financial terms of a divorce, or if you’re an attorney seeking a trusted resource for clients after their case concludes, we’re here to help. Clients begin with a brief consultation where we determine the scope of support they need. Some choose comprehensive guidance throughout the entire implementation process, while others prefer help with specific tasks. Either way, they don’t have to navigate the transition alone. With the right support, the process becomes smoother, more organized, and aligned with their long-term financial goals.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "02/12/2025", "datePublished" : "02/12/2025", "headline" : "Post-Settlement Financial Support", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-uhWlNr.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/post-settlement-financial-support", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "When one spouse is unemployed, caring for children and household needs, or is viewed as being ‘under-employed’, a vocational assessment can play an important role in determining fair child and/or spousal support. Simply put, a vocational assessment is an expert evaluation of someone’s earning capacity or what they could reasonably earn based on their background, education, skills, and current job market conditions. The evaluator’s findings can then be used to establish “imputed income,” meaning the income a person is capable of earning, even if they’re not currently earning it. Understanding how vocational assessments work, when to request one, or understanding that your spouse can request one for you, can help both spouses plan more effectively for their financial future. For the Higher-Earning Spouse If you’re the spouse who’s been the primary earner, you might worry that your support payments will be based on the unfair assumption that your former partner can’t contribute financially. A vocational assessment can bring clarity and objectivity to that question. Pros: Objective evidence: A professional evaluator provides independent data on your spouse’s earning potential. Equitable support calculations: The court can base support on potential income, not just current (or nonexistent) income. Encourages self-sufficiency: The assessment can motivate your ex to reenter the workforce, reducing long-term dependency. Planning advantage: You can anticipate future support scenarios and budget accordingly. Cons: Cost: You’ll likely pay for all or part of the assessment, especially if you’re the one requesting it. Delays: Scheduling and completing the evaluation can add time to your case. Uncertainty: The evaluator’s opinion is just one factor; the court may still rule differently. Potential conflict: Requesting an assessment can heighten tensions, especially if your ex feels undermined by the assessment. For the Lower-Earning or Non-Working Spouse If you’ve been out of the workforce because you have been raising children, managing the household, or supporting your spouse’s career, the idea of a vocational assessment can be unsettling. But it’s not necessarily bad news. A good evaluator will consider your entire picture, including your education, experience, health, age, and family responsibilities. Pros: Clarity and direction: The report can highlight realistic career paths, training options, and earning potential. Empowerment: Understanding your marketable skills can support long-term independence and confidence. Transparency: A thorough evaluation ensures your financial capacity isn’t underestimated or exaggerated by guesswork. Negotiation tool: The report can be used to advocate for reasonable expectations around job reentry or retraining time. Cons: Pressure to return to work: You may feel pushed to work before you’re ready, especially if caregiving duties or health issues are involved. Possible overestimation: Some reports may assume an earning potential that doesn’t reflect your real-world situation. Emotional stress: Being evaluated after years out of the workforce can feel uncomfortable or invasive. Financial impact: If the court imputes a higher income than you actually earn, it could reduce your support. Plan Ahead Many divorcing couples don’t learn about vocational assessments until they’re deep into negotiations, and when it’s too late to plan around them. Whether you’re the higher earner or the lower earner, knowing that this tool exists early on can help you and your team (attorney, financial expert, or CDFA) propose support options that are fair and realistic. A vocational assessment is about understanding capacity. For one spouse, it can mean ensuring financial fairness; for the other, it can be a first step toward rebuilding independence and a realistic career path. Vocational assessments can be powerful tools in creating equitable financial outcomes, but they can also introduce complexity and emotion into an already complex and emotionally-charged process. With the right professional guidance and open communication, both parties can utilize the information as a roadmap toward achieving financial stability and balance after divorce. Understanding how imputed income affects support can significantly impact your long-term financial planning. Our team helps clients evaluate how vocational assessments and potential income findings may influence their budgets and settlement options. Contact us to learn more about how we can support you through the financial side of divorce.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "12/11/2025", "datePublished" : "12/11/2025", "headline" : "Vocational Assessments in Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-uCY19b.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/vocational-assessments-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" : "Divorce is almost always emotionally and logistically complex and when there's a significant income gap between spouses, that complexity can intensify. The lower-earning spouse may be facing not only the end of a marriage but the start of a significant financial transition. For both parties, finding a fair and workable plan often requires careful thought, professional guidance, and even some creativity. If you're the lower-earning spouse, the financial unknowns can feel overwhelming. With smart planning and the right team of professionals, you can begin to chart a stable, empowered path forward. Below are key steps to consider as you start preparing. Reenter the workforce sooner than later Even if you've been out of the workforce for a while, reentering it on any level can be a powerful financial and emotional step. It not only helps build financial independence but may also factor into your case when maintenance (spousal support) is being determined. Starting to earn money, even at lower amounts, shows good faith and provides valuable data for financial planning and court considerations. The alternative to not finding work means that a vocational assessment can be requested to determine your earnings capabilities based on your education, prior work history, and local job openings that may fit your qualifications. This could be risky if the evaluation comes back higher than what you think is possible. Therefore, getting a job upfront could ease the stress of the possibility of this evaluation. The immediate cash influx to your situation can also drastically help your overall financial situation. Addressing the elephant in the room It’s not uncommon to hear, whether in hushed tones or outright advice, that the best financial move at the start of a divorce is to stop working in hopes of securing a higher maintenance award. However, this approach is highly situational and can carry significant financial risks if not carefully considered and tailored to your specific circumstances. In general, this guidance may not apply if you have young children, children with special needs, your own medical limitations, or if you’re nearing retirement age (typically 55 and older). However, for those outside these categories, returning to work sooner rather than later can have a meaningful impact, not just on your immediate financial stability, but also on your long-term financial health. Early re-entry into the workforce can create more flexibility and options during property division, ease pressure on your current budget, and improve your ability to save for retirement or remain in your home. Additionally, it can help grow your assets over time so that when maintenance eventually ends, you have both investment growth and earned income to support you, reducing the need to liquidate assets too early. Perhaps just as important, it can also help minimize the financial lifestyle shock children often feel during and after divorce. Be thorough when preparing financial disclosures When completing your financial affidavit, accuracy and detail matter. Your listed expenses should reflect your current reality as well as your anticipated post-divorce needs. Think beyond today’s costs. Include health insurance premiums, housing expenses (including estimates for a refinanced mortgage or new rental), future childcare, education costs, emergency fund savings, retirement savings, costs of starting a business if applicable (a website, marketing, networking, technology) and anything else likely to shift post-divorce. It is important to both not underestimate your needs and list expenses that can not be substantiated and could be challenged as unreasonable. Work closely with a CDFA A Certified Divorce Financial Analyst (CDFA) can help you develop a detailed budget, monitor current spending, and understand what your future financial life may realistically look like. This work is essential to support your request for spousal maintenance and to help you advocate for your future stability. Understand the maintenance landscape It’s important to review potential maintenance outcomes with your attorney as early as possible. Colorado's maintenance guidelines (also referred to as a calculator) offer a starting point, but it doesn’t capture the whole picture. For example, the court may impute income to a non-working spouse that is not currently being earned via a vocational evaluation, and not all of your spouse’s income may count for maintenance purposes (especially if it includes bonuses, RSUs, or other variable components). Define your financial needs In many high-income cases, the focus of maintenance could shift from guideline calculations of not just what you’re “entitled” to, but what your financial needs are. A clear and credible post-divorce budget helps demonstrate the reasoning behind your request for maintenance. The more detailed and realistic your budget, the more helpful it becomes in negotiations or court. Maintenance doesn’t have to be one-size-fits-all. Your attorney or CDFA may explore several possible structures, such as: Traditional monthly maintenance A mix of monthly maintenance plus a percentage of future bonuses Lump sum maintenance paid from assets A blend of the above Each option has pros and cons, including tax implications and enforceability considerations. It’s key to understand what works best for your situation and your long-term goals. Consult a CDLP before finalizing agreements If you need to refinance or qualify for a mortgage after the divorce, it’s crucial to review any proposed maintenance structure with a Certified Divorce Lending Professional (CDLP). The way your income is structured will directly impact your ability to qualify. This step is often overlooked but can have significant consequences. Navigating divorce with uneven incomes isn’t easy, but thoughtful preparation can make a significant difference. Take the time to understand your financial picture, explore your options, and lean on trusted professionals to guide you. While the process can feel uncertain now, with the right support and a clear plan, you can move toward a more stable and empowered future. Contact us today to learn how we can help.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "10/07/2025", "datePublished" : "10/07/2025", "headline" : "How to Plan for Divorce When You and Your Spouse Have Very Different Incomes", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-xLNCRq-700x532.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/how-to-plan-for-divorce-when-you-and-your-spouse-have-very-different-incomes", "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" : "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" : "If you’ve made the decision to get a divorce, you may wonder where to start the intricate and emotionally-charged process. Beginning with a clear understanding of your goals and priorities can significantly impact the outcomes and ease the journey ahead. This post provides guidance on how to establish this clarity before your divorce proceedings begin. Get Clear on Priorities Uncertainty can complicate the divorce process. If you're unclear about your priorities, it becomes challenging to articulate your needs and negotiate effectively. Taking time to get specific, realistic, and clear-headed about your priorities is pivotal for successful negotiations. Consider using this worksheet as a framework to document what’s most important to you during this time, including your priorities around: Property Finances Children Completing this before the divorce begins, during a less emotional period, provides a solid foundation for decision-making. If you can also understand your spouse’s top priorities, you may be able to reach agreements faster. Establish Goals Understanding what truly matters to you is key to establishing goals for your division of property, investments, debts, and parenting plans. Focus on critical aspects that align with your long-term well-being rather than attempting to attain everything or focusing too much on your short-term needs. For example, while ensuring that your spouse is paying the mortgage this month might be top of mind for you, work with professionals to consider what you need in the parenting plan long-term to ensure your children continue to have a meaningful relationship with both parents. Take your goals a step further by understanding, to the best of your ability, what each of your goals entails and how you can reach them. For example, if refinancing or purchasing a home is your goal post-divorce, understanding requirements for mortgage lending and building a future budget will be important. By having a few clear goals, you can identify what is non-negotiable and what you're willing to compromise on during legal negotiations.Working with a financial professional can also help you understand what long-term financial wins truly mean and how to balance those with short-term financial needs. Align on Strategy Collaborate with your attorney and other professionals to develop a strategy that aligns with your goals. As mentioned, flexibility is key during negotiations, so craft an approach that emphasizes deeper interests rather than rigid stances. For instance, if you are seeking spousal support until your children reach a certain age, explore alternative ways to bridge any income gap rather than assuming it's solely your ex-spouse's responsibility. Navigating the complexities of divorce becomes more manageable when you establish clear goals and priorities from the outset. This clarity empowers you to make informed decisions, negotiate effectively, and work towards a future aligned with your long-term vision. By approaching your divorce with clarity and purpose, you pave the way for a more stable and empowered future.To support the process, use our worksheet as a starting point for setting and prioritizing your interests during divorce. For more personalized guidance, reach out to us for a free consultation.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "02/02/2024", "datePublished" : "02/02/2024", "headline" : "Establishing Goals and Priorities for Your Divorce Before It Starts", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-Ue7fIJ.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/establishing-goals-and-priorities-for-your-divorce-before-it-starts", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Divorce can be a life-altering experience, especially for women who may find themselves contemplating working after retirement age or after a period of being a stay-at-home mom. This transition can be intimidating because you may be entering the empty nest stage and facing the task of redefining your identity, or juggling the new demands of single parenting alongside a new career. However, it's essential to recognize that there are numerous upsides to working post-divorce, ranging from financial and healthcare benefits to social enrichment, personal empowerment, and fulfillment. In this article, we'll explore the positive aspects of working after divorce. Social Connections and Personal Fulfillment One of the most significant benefits of working after divorce is the opportunity to expand your social circle and find a new sense of purpose. Many women, especially those who have been stay-at-home moms, may experience a sense of isolation during and after divorce. Returning to the workforce can provide a platform for building new friendships, reviving old ones, and strengthening your social network. This social enrichment can lead to improved mental and emotional well-being, and help you feel a new sense of identity following a big life change. Learning Opportunities and Career Growth Working after retirement age can offer valuable opportunities for continued learning and personal growth. Whether you're acquiring new skills, adapting to modern technologies, or embracing new challenges, your work can keep your mind active and engaged. This ongoing education not only benefits your career but also enhances your cognitive abilities and keeps you mentally sharp. These qualities can lead to a sense of empowerment and affirm that you have the potential to take care of yourself, no matter what happens in your life. Financial Upsides Earning a post-retirement income can have a positive impact on your financial well-being. Not only does it provide additional financial security, but it can also extend your investments and assets. Earning a regular salary, in addition to any child support or maintenance payments, increases the likelihood of not running out of money during your retirement years. In addition, working may increase your Social Security income, either by raising your initial benefit due to a higher income compared to historical earnings or by deferring benefits, which can increase your initial benefit by 8% per year up to the age of 70. Healthcare Benefits Maintaining access to quality healthcare is crucial, especially as you age or take on the responsibility of healthcare for your children. Continuing to work can provide you with employer-sponsored health insurance or the financial means to purchase reliable coverage. Regular access to healthcare can help you stay on top of preventative care and medical needs, reducing your overall medical expenses in the long-run. Volunteer Experience Many stay-at-home moms or near-retirement women have extensive experience volunteering in schools or other communities. These valuable skills and experiences should be highlighted on resumes as they have helped you cultivate valuable skills that are important to businesses, such as project management, organization, and leading with influence. Working after divorce helps you recognize what a tremendous asset you are for employers who value your dedication and community involvement. It can be rewarding and empowering to see your volunteer efforts translate into paid employment. Working after divorce may seem daunting, but it's essential to remember the numerous advantages of this choice. While the financial benefits are evident, working post-divorce also enriches your social life, helps you continue to grow as an individual, and supports a renewed sense of purpose. By embracing the opportunities that come with working after divorce, you can craft a fulfilling and financially secure future, reclaim your identity, and embark on a new chapter of your life with confidence and optimism. To learn how we support the financial aspects of your divorce and post-divorce planning, schedule a free consultation with Amy Melander, CFP®, CDFA®, and independent wealth manager.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "02/11/2023", "datePublished" : "02/11/2023", "headline" : "Embracing the Benefits of Working After Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-aAL1RB.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/embracing-the-benefits-of-working-after-divorce", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Divorce is a life-altering event that affects not only your family dynamics but also your financial plans, especially when it comes to your child's education. Navigating the complexities of college planning during and after divorce can be challenging, and by educating yourself on the dynamics, you can still make a meaningful contribution to your child’s college education. In this article, we discuss three considerations to navigate college planning during and after your divorce. 1. Managing 529 Plans State-sponsored 529 plans are a popular option to save for a child's education. While the account balance is considered a child's asset and typically not subject to division in the marital estate, several important questions and considerations may arise during divorce, including: Account Management: Who will manage the 529 accounts after the divorce? Will it be one spouse or a joint effort? Decision Making: Who has the authority to decide when and how the funds will be used? Is it one spouse's sole decision, or will it require joint agreement? Unused Funds: What happens to the 529 plan funds if they are not fully utilized by the child? Can they be transferred to another sibling, or will they be withdrawn, possibly incurring penalties? In most cases, both you and your ex-spouse will want to continue making contributions to a 529 and benefit from state income tax deductions (where applicable). Therefore, you will need separate accounts, each listing the child as a beneficiary. 2. Considering Financial Aid Implications If your child intends to apply for financial aid, it’s important to understand the implications of divorce on the Free Application for Federal Student Aid (FAFSA) and the College Scholarship Service (CCS) profile. While both the FAFSA and CSS Profile require financial information from parents, the FAFSA considers only the parent with the majority of overnights, while the CSS Profile evaluates need based on financial information from both parents. This is significant if there is a large income discrepancy between the parents because the less-financially-advantaged parent would typically qualify for a more compelling financial aid package. If you are concerned that your ex-spouse may be reluctant to provide financial information in the future, consider including agreements in your parenting plan stating that both parents will cooperate to the best of their abilities. Additionally, you’ll be required to provide financial information for the two years prior to the academic year you're applying for. For example, if you are applying for the Fall 2024 or Spring 2025 school year, you'd report financial details from 2022 onward. In the case of a new divorce, if you were married in the base year (2022, in this example) but are now divorced, you’ll need to disclose this change in circumstances in your financial aid applications. Laws regarding divorced parents' obligations for their child's college education vary by state. In some states, like Colorado, including college contributions in your divorce agreements makes them legally binding. In other states, there may be legal requirements for parents to financially support their child's college education. 3. Being Aware of Timelines When applying for financial aid through the FAFSA and CSS Profile, it's essential to be aware of specific timelines and information requirements, which are earlier than you might expect. The FAFSA and CSS Profile open for applications on October 1st for the following academic year. For instance, you would apply in October 2023 if your child plans to start school in the Fall of 2024 or Spring of 2025. Navigating college planning during and after divorce requires careful consideration of these factors. Consider seeking legal and financial guidance to ensure you make the right decisions as they pertain to saving strategies, to benefit both you and your child's educational future. Rules and regulations do vary by state, so consult with professionals who are knowledgeable about the specific laws in your area to create a plan that suits your family's needs post-divorce. To learn more about how we can support these important decisions during your divorce, contact us for a free consultation.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "19/10/2023", "datePublished" : "19/10/2023", "headline" : "College Planning Concepts: 3 Things to Be Aware of When Divorcing", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/amfinancial-blog-hero.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/college-planning-concepts-3-things-to-be-aware-of-when-divorcing", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ```