--- title: Our Blog - AMF Divorce | Family description: Family | 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 # Family ## [FAFSA Changes for Divorced Parents: What You Need to Know](https://amf-divorce.com/our-blog/fafsa-changes-for-divorced-parents-what-you-need-to-know) July 08, 2024 If you're a divorced parent or currently going through a divorce, the college application process can be particularly confusing. Applying for colleges, scholarships, and financial aid is complicated... [CONTINUE READING](https://amf-divorce.com/our-blog/fafsa-changes-for-divorced-parents-what-you-need-to-know) ## [Communicating Your Divorce: Sharing Your Decision with Others](https://amf-divorce.com/our-blog/communicating-your-divorce-sharing-your-decision-with-others) January 02, 2024 Divorce is an emotionally challenging journey that often begins with one of the most daunting tasks—communicating the decision to friends, family, and colleagues. The way this information is shared... [CONTINUE READING](https://amf-divorce.com/our-blog/communicating-your-divorce-sharing-your-decision-with-others) ## [5 Ways to Reduce Holiday Stress in the Face of Divorce](https://amf-divorce.com/our-blog/5-ways-to-reduce-holiday-stress-in-the-face-of-divorce) December 12, 2023 While often called the “season of joy,” the holidays aren’t always merry for everyone, especially for those going through a [major life change](https://amf-divorce.com/our-blog/divorce-a-catalyst-for-change) like a divorce. Relationship challenges and separation... [CONTINUE READING](https://amf-divorce.com/our-blog/5-ways-to-reduce-holiday-stress-in-the-face-of-divorce) ## [Co-Parenting & Gift Giving: Answering Your Top Questions](https://amf-divorce.com/our-blog/co-parenting-gift-giving-answering-your-top-questions) May 17, 2023 Divorce can be a difficult time for you and an even more challenging time for your kids. Most children crave consistency, naturally respond positively to rituals, and can be distressed when their... [CONTINUE READING](https://amf-divorce.com/our-blog/co-parenting-gift-giving-answering-your-top-questions) ## [Post-Divorce Living Arrangements - Should I Rent or Buy?](https://amf-divorce.com/our-blog/post-divorce-living-arrangements-rent-or-buy) June 01, 2022 There are so many decisions to make during the divorce process, many of which can impact the course of your life significantly. From the parenting plan you agree upon to how you’ll spend holidays... [CONTINUE READING](https://amf-divorce.com/our-blog/post-divorce-living-arrangements-rent-or-buy) ## [Legal Separation vs. Divorce: What's Right for Me?](https://amf-divorce.com/our-blog/legal-separation-vs-divorce) June 01, 2022 While divorce is probably a very familiar topic to you, legal separation may not be something you hear about as often, or fully understand. While these two approaches to cutting ties with your... [CONTINUE READING](https://amf-divorce.com/our-blog/legal-separation-vs-divorce) ##### 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" : "If you're a divorced parent or currently going through a divorce, the college application process can be particularly confusing. Applying for colleges, scholarships, and financial aid is complicated enough, and the recent changes to the Free Application for Federal Student Aid (FAFSA) have added new challenges. In this post, we’ll break down the latest updates and provide clarity on how these changes may affect your financial planning for your child's education. What is the FAFSA? The Free Application for Federal Student Aid (FAFSA) is a form that students and parents across the United States fill out to determine their eligibility for student financial aid. This aid includes federal grants, work-study, tuition-free college, and loans. It's a crucial step in securing financial support for college. What’s Recently Changed About the FAFSA? Starting with the 2024-25 award year, significant changes have been made to how divorced or separated parents report their information on the FAFSA. Previously, the parent with the most overnights was responsible for completing the FAFSA. However, this is no longer the case. Here's what you need to know: Step 1: Determining the Parent of Record The primary criterion for determining which parent completes the FAFSA has shifted from living arrangements to financial support. The parent who provides the most financial support over the 12 months prior to filing the FAFSA is now the parent of record, regardless of where the student lives. Specifically, the “parent of record” is the individual who provided more than 50% of the student's financial support in the past year, even if the student does not live with that parent. If neither parent provided support in the 12 months prior to filing the FAFSA, the “parent of record” is the parent who provided greater support during the most recent year that the student received financial support from a parent. The official “parent of record” is self-reported on the FAFSA. Schools typically will not verify this unless there is conflicting information. Child Support Considerations Child support payments play a crucial role in determining the “parent of record”. For example, if the mother pays child support to the father, this amount is considered part of the mother’s financial support for the student. If this, combined with other support, exceeds 50% of the total support for the student, the mother becomes the “parent of record” on the FAFSA. Step 2: Provide Financial Information to FAFSA The parent of record will provide their information on the FAFSA forms. If both parents provide equal amount of support, the parent with the higher income and assets will report their financial information. Remarried Parents If the parent of record has remarried, the new spouse's income and assets must be included in the FAFSA calculations for the “parent of record” during Step 2. This can be significant because it can have a profound effect on the financial picture and ultimately the amount of aid the student is eligible to receive. During Step 1, only the biological parents' financial contributions to the child are considered when determining the “parent of record” and the new spouse’s income is only relevant after that determination has been made. The “parent of record” is determined by looking only at each individual biological parent’s financial support without regard to any stepparent's income or support. After that determination is made, if the “parent of record” is remarried, the spouse’s/stepparent’s income and assets are included on the FAFSA. In a scenario where both of the biological parents have remarried, the new spouse’s/stepparent’s support is not included when determining the “parent of record”, but the new spouse of the “parent of record” is included on the FAFSA. How Does This Impact You as a Divorced Parent? Potential Reduction in Financial Aid Most likely the higher earner is now required to fill out the FAFSA, and therefore there’s a possibility that your child may qualify for less financial aid. This change is particularly impactful if the higher-earning parent is not the one the child lives with primarily, or has fewer overnights. Cooperation Between Parents The need for the higher-earning parent to complete the FAFSA can introduce challenges, especially if the relationship between the divorced parents is strained. Ensuring that this parent cooperates and provides the necessary financial information on time is crucial for the financial aid process. Individuals and family law attorneys may want to include provisions in divorce agreements stating that the parties agree to work together and provide required financial information needed for their child’s college financial aid process. Strategic Financial Planning Given these changes, strategic financial planning becomes even more important. Here are some steps you can take: Early Communication: Start discussions with your ex-spouse well before the FAFSA filing deadline to ensure all required information is gathered. Fill out the application as early as possible. Consult a Financial Planner: A professional can help you understand how these changes impact your specific situation and offer strategies to maximize your child’s financial aid and tuition free college eligibility. Review Financial Contributions: Keep detailed records of financial contributions to help with accurate reporting on the FAFSA. Navigating the FAFSA as a divorced parent has always had its complexities, but understanding the recent changes can help you better prepare and plan for your child's education expenses. The shift to considering financial support over living arrangements means that both parents need to communicate and cooperate more effectively. By staying informed and proactive, you can help ensure that your child receives the financial support they need for their college journey. For more detailed guidance and personalized advice, don’t hesitate to reach out to a financial planner who can assist you in navigating these changes. More information about Colorado’s tuition-free College Options can be found here.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "08/07/2024", "datePublished" : "08/07/2024", "headline" : "FAFSA Changes for Divorced Parents: What You Need to Know", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-oBtQaY-2048x1365-1.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/fafsa-changes-for-divorced-parents-what-you-need-to-know", "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 an emotionally challenging journey that often begins with one of the most daunting tasks—communicating the decision to friends, family, and colleagues. The way this information is shared can significantly impact the journey ahead for everyone involved. It’s important to approach this sensitive conversation thoughtfully, considering the emotional readiness of those you're about to inform. Seeking support from professionals like a divorce coach, from the onset of the decision, can help navigate these tricky conversations. In this post, we discuss what to keep in mind as you prepare to share the news of your divorce with others. Timing Is Key First, consider when you’ll share the news of your divorce. To make this decision, determine the emotional readiness of the individuals involved. For example, parents might relate better due to their own experiences white children could have intense emotional reactions. Consider the stage of legal proceedings and any other ongoing events or commitments before initiating these conversations. For example, it might not be best to share the news with your teenage daughter the night before she has a big test. Rather, consider timing that allows your friends and family time to react and process in the ways they need. Mutual agreement with your ex-spouse on the approach and timing for informing others can also be beneficial in managing the situation cohesively. Share Sensitively Once you’ve considered the right timing, take steps to deliver the news honestly and concisely in a private setting, avoiding public spaces. Share limited information initially, without disclosing legal intricacies. This approach can help maintain focus on the key message. Consider your audience and tailor the information to suit the understanding and appropriateness for each group. If you can initiate discussions with mutual friends alongside your ex-spouse, you can alleviate the immediate pressure they may feel of choosing sides. Start with less challenging conversations, if possible, allowing you to practise in delivering a composed, sensitive, and factual message about the situation, before moving to more challenging audiences, such as your colleagues or children. Managing Reactions Expect diverse reactions from friends, family, children, and coworkers. Being prepared to receive and process these responses is crucial. While accepting support is important, setting boundaries on discussions, especially if certain details aren't ready to be disclosed, is a healthy approach. Make it a priority to protect your personal space and privacy during this emotionally charged time. Getting help from professionals can help you process reactions effectively. Consider speaking with a divorce coach, psychologist, or other professionals in the early days of your divorce. Moving Forward Communicating your divorce decision is a significant milestone in the journey toward healing and moving forward. Approach it thoughtfully, protect your emotional well-being, and seek professional assistance to ensure a smoother transition through this challenging period. Sharing news of a divorce is just the beginning. Often, after this initial step, you may feel a sense of relief because you can now openly discuss the situation with friends and family. Next, it's time to focus on the practical aspects of the process, such as organizing finances and legal procedures. At A.M. Financial, Amy Melander, CFP®, CDFA® works with individuals and couples who are facing challenging financial decisions during the divorce process to help them make informed decisions today regarding the future. If you're navigating through this challenging phase and need support, consider reaching out for a free financial consultation or for referrals to professionals, such as a divorce coach, to guide you through the next steps.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "02/01/2024", "datePublished" : "02/01/2024", "headline" : "Communicating Your Divorce: Sharing Your Decision with Others", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/contemplating-divorce.jpg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/communicating-your-divorce-sharing-your-decision-with-others", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "While often called the “season of joy,” the holidays aren’t always merry for everyone, especially for those going through a major life change like a divorce. Relationship challenges and separation can make the holiday season instead feel overwhelming, stressful, and downright miserable. Maybe you are alone for the first time this holiday, following a split from your spouse, and trying to figure out how to take care of yourself while providing for the kids. Perhaps you feel extra pressure to maintain or rethink traditions. You might even be attending holiday parties alone for the first time in a long time, quietly declaring your relationship challenges publicly. Andra Davidson, Certified Divorce Coach, recently offered observations about the challenges faced by numerous families as they navigate the holiday season amidst significant life changes. In this post, we recap five valuable tips Andra offers to help you identify the emotions and reduce the stress you might experience in the face of divorce this holiday season. 1. Identify your triggers It’s not uncommon to feel generally overwhelmed with all that you are experiencing. If you can get clear and honest about the specific source of your stress, it will help you better address the emotions that are coming up. Common sources of holiday stress include the following: Interactions with your ex Being worried about being alone while the kids are with the other parent Changes in your family traditions Concerns about disappointing the kids because of financial or logistical strains. Are there other questions that come up for you? 2. Create a plan After you clearly identify the source of your stress, sadness, or uncertainty during this time, it’s time to create a specific plan to address the issues. For example, if you’re worried about being alone during the holidays because it’s always been a time filled with social events and family gatherings, make plans now to address this concern. Reach out to other single friends to schedule holiday shopping dates, dinner plans, or outings to enjoy winter activities. Don’t forget about making connections with coworkers, neighbors, or even groups on Meetup or Facebook with common interests. Reach out to trusted friends who have strong holiday traditions and share your concerns about being alone. Chances are your friends and family would love to include you but may not know to ask. Be proactive about managing your triggers in order to create the best possible holiday experience based on your unique circumstances. 3. Set the tone Breaking the habit of engaging in arguments with your ex can be challenging. Consider setting aside differences and commit to taking the high road throughout the holidays. If you react less to your ex spouse, could you find more peace for yourself during this stressful time of year? Taking the high road could look like sending a simple text or email to say ‘happy holidays’ or reducing interactions to the bare minimum so that there are fewer triggering experiences that stir up emotions. Spend some time thinking about the tone you can set during the holiday season and how choosing peace might reduce your stress level. 4. Communicate with kids (in an age-appropriate way) If you're a parent, you probably bear the emotional weight of realizing that this year will be unlike previous ones for your children. There's no need to pretend that this year will mirror the past. In an age-appropriate way, talk to you kids early in the holiday season and acknowledge that this year looks different. Ask them what they’d like to do this year to celebrate the holidays in order to give them a sense of control over the situation. Make it a priority to incorporate new traditions that they suggest or go out of your way to maintain their favorite traditions. If finances are tight or the parenting agreement isn’t ideal, recognize that the most important thing you can do is give them the gift of your undivided attention. Work to create memorable experiences with them by being present to whatever is giving them joy this holiday season. 5. Practice self-care and self-love Give yourself permission to be stressed and emotional during the holidays, and recognize how sometimes that stress is due to your own expectations. Use compassionate self-talk as if you are giving advice to your best friend as you reflect during this time. Reward your own strength and bravery with a gift to yourself. Maybe it’s a piece of jewelery to mark the occasion or simply a morning to sleep in. Consider a night out with friends, or investing time in a new, holiday activity you love. Acknowledge all that you are going through and honor yourself during this time. Andra Davidson is a Certified Divorce Coach and trained mediator, specializing in helping anxious and overwhelmed men and women find the strength and skills to minimize the impact of divorce and come out better on the other side Friends and clients of A.M. Financial are invited to take advantage of a reduced rate of $300 on her 90-minute Kick-Start Session, which is normally $375. This offer is good through December 2023.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "12/12/2023", "datePublished" : "12/12/2023", "headline" : "5 Ways to Reduce Holiday Stress in the Face of Divorce", "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/5-ways-to-reduce-holiday-stress-in-the-face-of-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 can be a difficult time for you and an even more challenging time for your kids. Most children crave consistency, naturally respond positively to rituals, and can be distressed when their expectations don’t meet reality. Feelings can be even more heightened during holidays, birthdays, and during annual milestones (such as vacations, back-to-school, and more). Kids also respond differently based on their ages at the time of the divorce. Along with holidays and rituals comes gift-giving and recognition through presents. Whether that be presents they receive or watch their parents receive, these activities are often important for their lives to feel “normal” despite their new family structure. In this post, we provide insights into ways you can create consistency for kids through carrying on a new version of gift-giving, post-divorce. Keep family rituals in tact, when possible Especially in the first year post-divorce, creating consistency for the kids can reduce their anxiety and uncertainty about the new parenting situation. Kids are used to both receiving gifts as well as seeing their parents receive gifts. Maintaining some gift-giving (if financially able) with your co-parent during this initial year or two is a way to foster a healthy relationship with the other parent by keeping known rituals intact. Gifts can be small, yet meaningful, such as a framed photo of your child or personalized journal. Some kids blame themselves for the divorce or even feel bad for their parents, and watching their parent without a gift to open on their birthday or other holiday can further cultivate anxiety, stress, and self-blame for kids. While divorce can be financially disruptive, maintaining existing rituals in the ways kids receive gifts can make them worry less about change. At the same time, if your children are accustomed to being showered by gifts, begin to identify new forms of displaying love other than material items. This will be especially important as single parenting ramps up and family time can be more limited. Doing things together and spending quality time in each other’s company will begin to mean so much more than material things. Follow your child’s lead After keeping things in tact as much as possible in the first year or so, it’s important to follow the lead and observe how your kids are adjusting to gift-giving and receiving. Most kids love to get gifts, but begin to notice whether they prefer your time and attention rather than material items and lean into their tendencies and cues. As far as kids honoring their parents with gifts, they might ask to buy a birthday gift for your co-parent to honor them, while other kids may be comfortable creating a hand-drawn card and not ask about gifts at all. Follow their lead and don’t push the topic. Let them direct the process so it feels authentic for everyone involved. If they do show interest in picking out a gift for their parent, allow them to choose something in a reasonable price range and encourage them to wrap and present the gift without getting involved in the process. Help them consider gifts of time and experiences as well. Consider a conversation Some co-parents may want to set limits and expectations around gift giving to eliminate competition and create certainty, especially for the children. Some co-parents may even decide to use this same strategy to set limits on the gifts they give their kids, setting a financial limit on big holidays that they collectively commit to, or maybe even pooling money for a bigger gift that can be shared between families. Other families may define expectations around co-parent gifts and commit to taking the kids shopping for the other parent’s birthday, for example. While these conversations may only work in constructive co-parenting situations with high trust and respect, it may be worth attempting a dialogue to ensure that expectations are clear and fair across families. The way kids are impacted in a divorce shouldn’t be taken lightly. While there is so much you can’t control about how they feel and how they will respond, honoring family rituals around gifts and celebrations is one thing you can impact. Look to create consistency initially and then allow the rituals evolve based on the responses from your co-parent and your kids. If you have other questions about financial planning for the kids post-divorce, involving gift giving or other topics, contact Amy Mahlen for a free consultation.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "17/05/2023", "datePublished" : "17/05/2023", "headline" : "Co-Parenting & Gift Giving: Answering Your Top Questions", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/Girl-Christmas-Sad-e1621964931836.jpg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/co-parenting-gift-giving-answering-your-top-questions", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "There are so many decisions to make during the divorce process, many of which can impact the course of your life significantly. From the parenting plan you agree upon to how you’ll spend holidays to changes that might impact your job, there is a lot to sort through during this time of transition. One of the biggest decisions you’ll make is around your post-divorce living arrangements and the decision to rent or buy a home. The decision to rent or buy (or even stay in your marital home) will impact your finances at the time of your divorce and for years later. Often, the cost of a mortgage or rent will be the highest bill you pay each month, so it’s important not to take this decision lightly. The current real estate market makes this even more difficult with competitive housing offers and low inventory complicating options. In this post, we discuss the pros and cons of post-divorce living arrangements and what to consider as you finalize your decision. Pros to Renting & Cons to Buying There is no doubt that renting offers you more flexibility than other living arrangements. It’s a short commitment, often at a lower total price point (without a large down payment required). Renting also gives you time and a new space to clearly think about where and how you want to live long-term. In a competitive housing market, renting may be an easier choice, especially if housing inventory is low. Leaving your marital home may have emotional benefits like providing a fresh start with new neighbors and friends. Often there is less maintenance in a rental home, or that maintenance falls on the landlord or homeowner rather than you. This also translates to less post-divorce stress, which can assist in your emotional recovery. Be honest with yourself about the cost of owning a home and consider how much savings you must have for maintenance expenses that come up, beyond your mortgage or rent payments. If your former spouse was the type of partner who could fix anything, it could be a struggle to take care of a home on your own, especially with everything else going on. Financially, mortgage lending requirements may make homeownership out of reach and renting a more attractive option, especially with a single income or lack of past income. If you and your partner had credit issues, this could also make purchasing a home difficult. Lastly, depending on the structure of court-ordered support, qualifying for a loan on your own for the caliber of home you were living in when married could make purchasing the type of home you’d like out of reach. Pros to Buying / Cons to Renting If you are able to purchase a home post-divorce, or anytime, it helps with building equity and on-time mortgage payments help with rebuilding credit. Even purchasing a small home post-divorce can be a great long-term investment and help you rebuild assets. Most homes will appreciate over time, which makes owning property an attractive investment. Purchasing a smaller home post-divorce could eventually convert to a rental home in the future as you continue to accumulate wealth or even get remarried. A new home can also be empowering and give you another reason to work hard at rebuilding yourself financially after a divorce. It can be emotionally liberating to call something your own and navigate the home purchasing decision-making process without your former spouse. Staying in Your Marital Home Another option to consider is staying in your marital home. If you are receiving support, it is vital to determine prior to making final agreements whether you’ll have enough maintenance and/or child support (or other savings) to qualify to keep your home by refinancing (or purchasing a new home) and for additional expenses that will come up. Staying in your marital home is particularly important to consider if you have kids. Kids may benefit from staying in the marital home with one parent for continuity during a time of so much change. However, if the home is a financial burden, the kids will do better in a home without overwhelming financial stress on their parent, allowing the parent to focus their energy on rebuilding a healthy environment overall. One other benefit of staying in the marital home is that there is less change and one less thing to worry about during this time. Divorce is a time full of change, and if that makes you highly anxious, eliminating one major change and staying in your home may help. On the flip side, staying in your marital home, with memories, history, and the same neighbors may make moving on more difficult. If your home is the largest financial asset you own together and you are wishing to keep the home, you may be tempted to offer other assets, such as retirement, cash or stock assets, in exchange for home equity. This may not be the best financial move for you since more money would be tied up in your home versus available for unexpected expenses and could have tax issues to take into account. It is important to understand how a lopsided asset division can affect you long term. Lastly, it’s critical to review future tax consequences of keeping the marital home, especially in a hot real estate market. Many recent divorcees are unknowingly incurring substantial future tax consequences by retaining the home themselves. A financial advisor can review your exact situation and advise accordingly. The decision to buy or rent is often personal, and a financial advisor is your best ally in running scenarios and talking through the best options. It’s important to weigh both the finances and emotional connection to the home (both good and bad) as you arrive at the decision that is best for your family. Everyone feels the financial impact of a divorce and a financial advisor can really help you understand what is best now and for the future. Contact A.M. Financial for a free consultation and learn more about how we can help.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "01/06/2022", "datePublished" : "01/06/2022", "headline" : "Post-Divorce Living Arrangements - Should I Rent or Buy?", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-k7wNP7.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/post-divorce-living-arrangements-rent-or-buy", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "While divorce is probably a very familiar topic to you, legal separation may not be something you hear about as often, or fully understand. While these two approaches to cutting ties with your spouse are more alike than different, one may better serve your needs depending on the unique dynamics of your marriage. If you are considering a divorce but aren’t completely confident in that decision, there may be reasons to choose a legal separation. In this post, we help you understand the differences so you can make the right decision for your future. What is a legal separation? A legal separation is essentially putting your marriage “on hold” or it could be thought of as a “trial divorce”. Typically, the process is very similar to that of a divorce, as is the cost. Both parties move to different homes and start living separate lives under a legal separation agreement. That agreement also splits finances and assets, including dividing property and/or debt. Any applicable maintenance or child support is agreed upon and you work with attorneys or advisors to create a parenting plan where you agree on an arrangement for raising your children (if applicable). In summary, a legal separation agreement redefines the financial connection you have to your spouse. However, you are still legally married despite having determined your rights and obligations (just like you would in a divorce settlement). Due to this, you cannot remarry and you may still have some financial ties to your spouse, as defined in your separation agreement. Additionally, a legal separation could have an emotional impact on your spouse, providing false hope for reconciliation and dragging out an already painful process. Reasons to consider separation instead of divorce Filing for divorce is not a decision that should be taken lightly for a variety of reasons. Despite a legal separation being so similar to a divorce, you may choose it for important reasons, including: Desire to reconcile the marriage, with financial protection Despite wanting to work things out, if there is a big discrepancy in income or a financially irresponsible spouse (due to factors like excess spending, gambling, refusal to work,, or possible addictions), you can get financial protection during this time through a legal separation. This might slow things down and give you more time to solve some of the issues in your marriage instead of rushing into a divorce for financial reasons. Is a Divorce in Your Future? Get Prepared with These Essential Tips. Uncertainty about your decision to end your marriage Perhaps there has been a lot of back and forth about divorce and uncertainty about the path forward. For one reason or another, you aren’t 100% confident that divorce is the right choice now. Legal separation gives you some flexibility, time, and space to think through your decision more fully with some structure and protection in place around finances, parenting time, and assets. Religious reasons You may have a strong moral belief in marriage and hesitancy to divorce. Your family may disapprove for religious reasons and a legal separation may be a stepping stone you feel is morally more acceptable. Health insurance needs More logistically, you may need to stay married for health insurance coverage. This could be for everyday coverage, or due to a chronic illness or disability that is expensive without good coverage. Sometimes this applies to families with a stay-at-home parent, who might choose separation over divorce due to expensive individual health insurance or an inability to obtain insurance through a work plan. A legal separation could give that non-working parent time to get back on their feet and find work with health insurance coverage. Tax advantages There are undoubtedly financial benefits to filing taxes jointly, although filing “married filing separately” is also an option. Depending on the time of year and the tax implications of your divorce, legal separation may be advantageous to the overall family for one or more years. Various situations, such as a large disparity of taxable income or student loan debts, can also create dynamics in which it is more advantageous to file separately and should be reviewed with your tax advisor. When financial trust issues are present, filing separate returns can offer significant financial protections and should be discussed with your various financial and legal professionals. Timing is bad Maybe the holidays are just around the corner, or the kids are almost grown up and off to college. Perhaps you plan to sell a joint business in the near future, or the housing market is down and you wouldn’t get a fair price for your house. Or, perhaps you need time to rebuild credit scores to qualify for a home on your own or you are one year shy of meeting the ten year requirement to qualify for spousal social security benefits. Timing is everything and sometimes a legal separation buys you time to sort through significant financial (or emotional) events in your life before deciding on or moving forward with an official divorce. Making a future divorce easier Lastly, because a legal separation defines three areas of divorce; financial support, division of assets and a parenting plan (if children are involved), you can finalize your divorce based on a separation agreement without additional litigation or mediation. In Colorado, there is one form to file to convert a legal separation to a divorce after a couple has been legally separated for six months. Understanding the way legal separation varies from divorce empowers you to choose the path that is right for you and your family. We can help with the financial considerations of this decision based on your unique situation. Not only can we advise you on the financial impact of divorce and legal separation now, we can help you plan for the future. Contact us for a free consultation today.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "01/06/2022", "datePublished" : "01/06/2022", "headline" : "Legal Separation vs. Divorce: What's Right for Me?", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-TKNLfr.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/legal-separation-vs-divorce", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ```