--- title: Our Blog - AMF Divorce | Planning (4) description: Planning | From mortgage professionals to therapists to attorneys, the team at A.M. Financial works closely with these types of professionals. (4) --- ## 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 # Planning (4) ## [Part 2: Can I Financially Afford to Get a Divorce?](https://amf-divorce.com/our-blog/financially-afford-divorce-mahlen-financial) June 01, 2022 In [part one of this post](https://mahlenfinancial.com/discernment-counseling-mahlen-financial/), we discuss Discernment Counseling and how couples use this approach to make a decision about taking a next step to fix their marriage or choosing divorce.  [Deb Daufeldt of...](https://newchaptersolutions.com/about/) [CONTINUE READING](https://amf-divorce.com/our-blog/financially-afford-divorce-mahlen-financial) ## [How Does Market Uncertainty Impact My Divorce?](https://amf-divorce.com/our-blog/market-uncertainty-impact-my-divorce) June 01, 2022 During this time of bear market territory, high inflation, stock market volatility, and the threat of a recession, your money simply won’t go as far. You might wonder how these volatile market... [CONTINUE READING](https://amf-divorce.com/our-blog/market-uncertainty-impact-my-divorce) ## [Handling the Holidays and a New Divorce](https://amf-divorce.com/our-blog/handling-the-holidays-and-a-new-divorce) June 01, 2022 The holidays are upon us and if this is your first year approaching them as a single individual, you may not know what to expect. Whether you have kids and a large  family to buy presents for or... [CONTINUE READING](https://amf-divorce.com/our-blog/handling-the-holidays-and-a-new-divorce) ## [Non-Spousal Retirement Beneficiary Planning](https://amf-divorce.com/our-blog/retirement-beneficiary-planning) June 01, 2022 After your divorce is finalized and the various accounts divided and settled, you will be able to update your beneficiaries. Assuming your partner or spouse was previously your primary beneficiary,... [CONTINUE READING](https://amf-divorce.com/our-blog/retirement-beneficiary-planning) - - [1](https://amf-divorce.com/our-blog/tag/planning) - [2](https://amf-divorce.com/our-blog/tag/planning/page/2) - [3](https://amf-divorce.com/our-blog/tag/planning/page/3) - [4](https://amf-divorce.com/our-blog/tag/planning/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" : "In part one of this post, we discuss Discernment Counseling and how couples use this approach to make a decision about taking a next step to fix their marriage or choosing divorce. Deb Daufeldt of New Chapter Solutions is an experienced Counselor who often leads couples through this process in Colorado. In her work, she often sees couples questioning whether they can afford to get a divorce, if they are willing to compromise their lifestyle as part of the decision, and whether they should stay together for financial reasons. When these conversations arise, Deb works with the team at A.M. Financial in various ways to help the couple understand what to expect on the financial side of the divorce. In this post, we’ll share what to consider and how to plan for the financial decisions that coincide with a divorce. Typical Financial Concerns When a couple or individual is going through Discernment Counseling, they often identify that they have different relationships with money. In fact, one of the top three reasons individuals or couples enter counseling and/or get divorced is due to different philosophies on spending or saving money. Even if a couple decides to get divorced, these conflicts continue to exist throughout the divorce process, with varying expectations about how money should be divided and spent as attorneys draft separation agreements and parenting plans. If a couple is considering divorce, typical financial questions that might arise include: Can I afford to live on my own? How much will my lifestyle have to change if I live on my own? What does the financial sacrifice look like if we choose divorce? Can we keep the house or buy two houses independently if we get divorced? Will I have to go back to work or get a different, higher-paying, job? How does divorce impact my retirement plans? With the current cost of living increasing and housing becoming a greater challenge for many individuals, it’s important to understand the answers to these questions and create clear financial expectations during Discernment Counseling. This approach ensures that couples truly understand the impact of their decision to get divorced. Is a Divorce in Your Future? Get Prepared with These Essential Tips. While finances isn’t a reason to stay together, having an accurate understanding of what post-divorce life will look like can help motivate a couple to exhaust all options to fix their marriage. Having the full picture helps a couple arrive at the decision to choose divorce with eyes wide open. Planning & Modeling If you have a number of money-related questions as you decide whether or not to move toward a divorce, it’s important to validate whether you can financially stand on your own two feet as part of the Discernment Counseling process. At A.M. Financial, we work with couples or individuals who are considering a divorce to understand what their future budget looks like, how the divorce will impact their retirement, what to expect with taxes, and whether they may need to return to the workforce to support their needs and lifestyle. We can model various scenarios to help you understand what will be required to maintain certain lifestyle standards with the current and future cost of living. Armed with this data, couples or individuals can have a clear understanding of the sacrifices they will need to make in order to exist on their own post-divorce. By visualizing this new lifestyle through detailed budgets and planning, couples can make more informed decisions about everything from the timing of their divorce to what kind of attorney they may want to hire, based on how they want to negotiate their divorce settlement—and depending on their financial goals. If you are at a crossroads in your marriage and considering Discernment Counseling to help you arrive at a “go” or “no-go” decision, consider pairing that process with sessions that help you understand the financial considerations of your divorce. Even if you decide not to move forward with your divorce, working with Amy Mahlen, Certified Financial Divorce Analyst, can give you additional insights that can help you address any financial challenges in your marriage, especially if that is a primary source of conflict for you and your partner. Get started with a free consultation by contacting us 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" : "Part 2: Can I Financially Afford to Get a Divorce?", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-IC3Cpl.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/financially-afford-divorce-mahlen-financial", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "During this time of bear market territory, high inflation, stock market volatility, and the threat of a recession, your money simply won’t go as far. You might wonder how these volatile market conditions impact your divorce and what to consider as you negotiate the financials of your decree. In this post, we address how to respond to the impact of challenging market conditions in your divorce. Who is most impacted by these market conditions? Everyone is impacted on some level when the economy is in a downturn. However, individuals with short-term (within 12 to 24 months) money needs that will require withdrawals from investment or retirement accounts to pay for things, such as a new house, moving costs, furnishing a new home, a new car, attorney payments in the divorce, and more, will be more impacted by the current market conditions. Other individuals who will disproportionately feel the impact of the current economy in their divorce include: People who have divorce agreements that require the sale of stock to divide assets (try to avoid creating this type of agreement if at all possible in the first place unless taxes are addressed in your agreement) Individuals who exchange one type of asset, such as home equity, for a different type of asset, such as funds in a retirement account or pension payments. If you don’t fall into one of the groups above, you are in luck and you’ll be less impacted long-term if you can leave your money in the market until it rebounds. It could rebound in 8 months like the market fall in 2020 or in 5.5 years like during the great financial crisis. As scary as it can feel to lose 34.8% like the Dow Jones Industrial Average (DJIA) did in spring 2020 it’s important to remember that it gained 91.9% from March 2020 low to the high in January 2022. Remember, that you only really lose money in the market when you sell long-term investments while they are experiencing temporary setbacks. As a general rule of thumb, the longer your money can stay invested without selling, the better off you are. When are market losses normal? There are different investment strategies to consider for short and long-term needs. Assets that are intended to provide for future long-term needs, such as retirement, should be invested with an appropriate level of risk. You should expect periodic losses over time in order to achieve higher levels of growth. Selling assets that are invested and intended for future goals, such as retirement, during periods of market corrections, can be detrimental to long-term strategies. Because selling assets that have incurred market losses is not ideal, make sure you have exhausted and considered all other financial possibilities to meet your financial needs before doing this. This includes budget modifications, employment opportunities, payroll tax withholding modifications (if appropriate), loans against your 401K or home, or other available loans (if a loan works within your future cash flow). What does this mean for my divorce? In your divorce, the level in which different assets are changing in value should be taken into consideration if assets are being swapped. For example, if you agree to keep a higher amount of home equity in exchange for retirement assets, it’s important to understand possible differences in future growth and/or loss potential. Taxes should also be considered as it can skew the end results. If you have to pay 30% taxes on funds coming out of an IRA versus little to no taxes on equity from the primary residence, what looks like a dollar-for-dollar exchange on the surface may be considerably lopsided. During and after your divorce, review the level of risk associated with your accounts and investments with your financial advisor to make sure it is appropriate for you and your future situation. What can you do to protect your assets? If you must sell assets, and you have exhausted all alternatives, make sure to work with your CDFA or financial advisor to understand the best strategy to do so. He or she can advise you on where withdrawals are more efficient by reviewing the accounts and investments available. Don’t forget to consider tax implications and understand if any tax saving strategies are possible. If you are going through a divorce, create a decree that leaves your money invested in the market if you don’t need it right now to protect your assets. Avoid selling during market downturns like we are experiencing now and instead, split the shares in a way that doesn’t require you to sell them. This can usually be achieved by transferring assets, rather than selling. Lastly, if you received or will receive a lump sum of money in your divorce, consult with a financial expert about whether investing in the stock market as a long-term strategy is a good fit for your needs. Based on your unique situation, this can be a great time to invest to meet future financial goals. At A.M. Financial, Amy Mahlen, CFP®, CDFA® is a qualified professional with over 17 years of experience who can help you navigate questions you have around current market conditions and your divorce. Contact us to schedule a free consultation and learn how we help clients like you understand financial options in challenging times like these. Divorce transition/financial planning services offered by A.M. Financial. Investment advisory services offered through WealthSource Partners, LLC (“WSP”). A.M. Financial and WSP are independent and unaffiliated entities. All investments include the risk of loss and nothing herein should be construed as a guarantee of any specific outcome or profit. Past performance is no guarantee of future results. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The statements and opinions expressed are those of A.M. Financial and Amy Mahlen and do not necessarily represent the views and/or opinions of WSP or any other associated or affiliated person of WSP. Furthermore, the statements and opinions expressed are for informational and educational purposes only and should not be construed as legal, tax, accounting or investment advice. All statements and opinions are current only as of the time made and are subject to change without notice.", "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" : "How Does Market Uncertainty Impact My Divorce?", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-M9uR5o.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/market-uncertainty-impact-my-divorce", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "The holidays are upon us and if this is your first year approaching them as a single individual, you may not know what to expect. Whether you have kids and a large family to buy presents for or are concerned about not having a place to spend Christmas with others, it’s important to start planning this season earlier when you are divorced. It’s also critical to consider how the holidays will impact your budget, spending, and financial situation. In this post, we cover what to consider as a newly-divorced individual from both a scheduling and financial perspective, and how you can adequately prepare for this season. Holiday Schedules Depending upon whether you still have kids living in the home, your holidays may look very different than year’s past. If you are newly divorced, take time to review the details of your parenting plan, including the exchange times and locations. By understanding exactly what time you have with your kids, you can maximize the quality of that time. Recognize that it can be very hard to be away from your kids and miss holiday rituals in the first years of your divorce. However, if you don’t have your kids on Christmas morning or during other important holiday moments, choose another day to observe them. This approach will help you create new traditions despite the day of the calendar. The same goes for Hannakah or other religious and non-religious celebrations and traditions. Because you don’t have a default relationship like you had with your spouse, plan ahead and decide where you’ll spend important holiday times so you can avoid spending too much time alone. Don’t be afraid to carve out some time for yourself during this first holiday alone. That important time of reflection can be spent focusing on this next chapter, setting goals, and reflecting on the past since you just went through a major life change. Tap into gratitude for the lessons of your divorce and the transformation that occurred. Consider new traditions for yourself as well. Volunteering is a popular way to give back during the holidays in a meaningful way. While the holidays can classically be a time of over-indulgence, consider a day or weekend of self-care around this time by treating yourself to a financially reasonable spa day, having your closest friends over for a potluck-style dinner, or attending a holiday event to get in the spirit. Lastly, you may question how to approach gifts this year. Many divorced parents will give their former spouse a gift in the early years, especially if it showcases kindness and respect on behalf of your kids. When it comes to kids, discuss gifting expectations with your ex so your kids don’t get duplicate gifts or have wildly different gift experiences based on your set budgets. Lastly, consider gifts that are experiences as you likely have less time with your kids overall now. Consider gifts that will provide a lasting memory by giving them life experiences you can share together like indoor skydiving, tickets to sporting events, weekend adventures in the Colorado mountains, and more. Holiday Finances While scheduling can be a major challenge for newly divorced individuals, the financial aspects of the holidays can also challenge your budget. It’s important to financially plan for holiday spending all year long. First, set realistic expectations around gift-giving with your family and children. This includes suggesting setting price limits for gift giving. While not always possible the first year, it’s ideal to work these costs into your budget and set aside some money each month for holiday gifts, now that you are on a tighter budget. This year, inflation will make it feel as if your dollars don’t go as far. Managing your holiday spending and avoiding debt once you are divorced is very important. Holiday expenses, including paying for holiday events, food to host a family dinner, new holiday decorations, and of course, gifts, can quickly add up. It’s hard to get out of debt with fewer financial resources and more fixed expenses, and also important to stay financially healthy in order to qualify for a home or auto loan post-divorce. Not to mention, saving for retirement should be a far greater long-term priority than creating a picture-perfect holiday celebration for your family. In order to budget effectively for the holidays all year long, and stay out of debt, work with a financial planner to set reasonable, monthly allocations to a holiday fund based on your income. This year, notice whether you are overdoing it and trying to compete for your kid’s or family’s attention by overbuying or overextending yourself with holiday events, decorations, gatherings, and more. Getting into debt as a single person can be detrimental to your long-term financial situation and it can take a lot more time to recover from debt post-divorce than you might expect. Contact Amy Mahlen, Certified Financial Planner™ at A.M. Financial, to learn more about our services and how we can help you better prepare for the financial impact of the holidays moving forward.", "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" : "Handling the Holidays and a New Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-kCcZ1U.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/handling-the-holidays-and-a-new-divorce", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "After your divorce is finalized and the various accounts divided and settled, you will be able to update your beneficiaries. Assuming your partner or spouse was previously your primary beneficiary, you’ll need to update all retirement plans to properly pass assets to your heirs. While this sounds simple, it involves more complex laws, regulations, and financial infrastructure than you might anticipate. In this post, we detail what to consider when choosing beneficiaries, important legislation that impacts your decision-making process, and how to create a plan that works best for you and your beneficiaries. SECURE Act of 2018 Before we get into factors you might consider when choosing beneficiaries, it’s important to understand a recent law that impacts your planning: the SECURE Act of 2018. Prior to the SECURE Act of 2018, non-spousal beneficiaries had the ability to withdraw funds from their inherited retirement accounts in any way they chose, as long as a required dollar amount was withdrawn each year. This required amount was known as the required minimum distribution (RMD). The RMD was calculated on an annual basis and took the life expectancy of the beneficiary into consideration. Therefore, the beneficiary had the opportunity to ‘stretch’ withdrawals over their lifetime allowing assets to grow over a long period of time from tax-deferred growth. This essentially increased the overall inheritance while minimizing tax consequences. After the SECURE ACT of 2018 went into effect, regulations for non-spousal beneficiaries changed and became more complex. The new rules require all non-spousal beneficiaries to completely liquidate the inherited retirement account(s) within ten years of the original owner’s death. There is no annual required amount that must be withdrawn; however, the balance of the account(s) must be zero dollars within ten years. Any withdrawal made from a pre-tax retirement account (such as a Traditional IRA) is 100% taxable to the beneficiary. Therefore, withdrawals could potentially bump your beneficiary(s) into a higher tax bracket, significantly increasing the overall tax due on the accounts overall and lessening the total amount inherited. There are some exceptions to the new structure where the old ‘stretch’ law method still applies to: Disabled individuals Chronically ill individuals Individuals who are less than ten years younger than the original account owner. This situation might apply if the beneficiary was a sibling, cousin, or friend. Minor children. Minor children will be able to stretch withdrawals over their lifetime until they reach the age of majority, which is 18 in Colorado. After they reach that age, they will be required to withdraw the remaining funds in ten years. Some trusts. If you currently have a trust with a named beneficiary, speak with your estate attorney to determine if it meets the requirements to ‘stretch’ the withdrawals over your beneficiary’s lifetime. Factors that Influence Beneficiary Planning As you can see, following the SECURE ACT of 2018, account holders are putting more thought and strategy into beneficiary planning due to the complexity of the updated law. Many work closely with financial experts who can help them make decisions on beneficiary planning for their unique situation. As you determine who to choose as your new beneficiary(s) post-divorce, it is critical to consider the following factors: Your relationship to the beneficiary Your age (as the account holder) The age of the beneficiary The type of retirement account (pre-tax or post-tax) The amount of money that will transfer to your beneficiary The financial situation of the beneficiary. While there are families and situations where the change in legal landscape won’t significantly affect the beneficiary’s overall outcome. However, other families and individuals may be impacted by these changes. Some of the most impacted beneficiaries are those who receive enough inheritance that they move into a higher tax bracket and receive increased tax bills. Creative Financial Solutions If you believe your beneficiaries will be fairing well financially at the time of the inheritance and therefore would prefer deferring withdrawals to grow the inheritance, there is a possible solution to ‘stretch’ withdrawals over a non-spousal beneficiaries’ life. With the help of an experienced estate attorney, a trust can be drafted that meets the various IRS requirements. The trust itself can be named the primary beneficiary of the retirement account (instead of the beneficiary outright). When this workaround is in place, the stretch laws can be utilized over the beneficiary’s lifetime, as they were before the SECURE ACT of 2018. Designing your beneficiary plan in this way provides your heirs with significant long-term growth potential and gives you peace of mind that their inheritance won’t have unintended tax consequences. At A.M. Financial, we can help you design a post-divorce beneficiary plan that provides the maximum amount of inheritance to your heirs while minimizing the tax consequences. A Certified Financial Divorce Analyst, Amy Mahlen can provide the guidance you need to choose your beneficiaries and design a plan that works for your family’s unique situation. Contact us to learn more.", "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" : "Non-Spousal Retirement Beneficiary Planning", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-ptQzyk.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/retirement-beneficiary-planning", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ```