--- title: Our Blog - AMF Divorce | Property Division description: Property Division | 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 # Property Division ## [What Cases Benefit Most from Mediation?: An Interview with Tia Zavaras](https://amf-divorce.com/our-blog/what-cases-benefit-most-from-mediation-an-interview-with-tia-zavaras) September 01, 2026 Mediation gets recommended constantly in divorce, but it isn't a one-size-fits-all solution. To dig into when it actually works, and when it doesn't, I sat down with divorce attorney and divorce... [CONTINUE READING](https://amf-divorce.com/our-blog/what-cases-benefit-most-from-mediation-an-interview-with-tia-zavaras) ## [Do I Really Need a Divorce Attorney?](https://amf-divorce.com/our-blog/do-i-really-need-a-divorce-attorney) August 02, 2026 When people begin the divorce process, one of the first financial questions is often, “How can I keep the cost of divorce as low as possible?” [CONTINUE READING](https://amf-divorce.com/our-blog/do-i-really-need-a-divorce-attorney) ## [The Importance of Financial Disclosures in Divorce](https://amf-divorce.com/our-blog/the-importance-of-financial-disclosures-in-divorce) October 02, 2024 Divorce is often accompanied by [emotional](https://amf-divorce.com/our-blog/managing-the-money-crazies-in-divorce-navigating-emotional-turbulence) and financial challenges. These dynamics can feel overwhelming, especially if informal agreements were made between you and your spouse. Despite any... [CONTINUE READING](https://amf-divorce.com/our-blog/the-importance-of-financial-disclosures-in-divorce) ## [Navigating a High Net Worth Divorce: Financial Insights](https://amf-divorce.com/our-blog/navigating-a-high-net-worth-divorce-financial-insights) May 02, 2024 As a financial professional working with individuals and families for over two decades, and specifically divorce for nearly 9 years, I've encountered numerous complex cases, especially when it comes... [CONTINUE READING](https://amf-divorce.com/our-blog/navigating-a-high-net-worth-divorce-financial-insights) ## [What is a Loan Assumption?](https://amf-divorce.com/our-blog/what-is-a-loan-assumption) August 01, 2023 Deciding the fate of [marital property](https://amf-divorce.com/our-blog/separate-vs-marital-property) is a crucial aspect of any divorce settlement. The process often involves intense emotions and complex financial considerations, making it all the more... [CONTINUE READING](https://amf-divorce.com/our-blog/what-is-a-loan-assumption) ## [Separate vs. Marital Property: Understanding the division of assets in your divorce](https://amf-divorce.com/our-blog/separate-vs-marital-property) January 03, 2023 Getting a divorce means learning a whole new vocabulary of legal and financial terms. Therefore, having a team of experts to talk you through new concepts and what to consider as you make important... [CONTINUE READING](https://amf-divorce.com/our-blog/separate-vs-marital-property) ## [What should we do with the home in our divorce?](https://amf-divorce.com/our-blog/home-in-divorce) June 01, 2022 If you are going through a divorce, one of the top questions likely on your mind is what to do with your marital home. This decision has financial, emotional, educational, and even social... [CONTINUE READING](https://amf-divorce.com/our-blog/home-in-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" : "Mediation gets recommended constantly in divorce, but it isn't a one-size-fits-all solution. To dig into when it actually works, and when it doesn't, I sat down with divorce attorney and divorce coach Tia Zavaras, founder of Evolved Law, who has spent years living the process and thinking about how to make it gentler and more effective for the families going through it. Here's what she shared. What Cases Benefit Most from Mediation? Mediation tends to work well, Tia explained, when both spouses have, or can get to, a clear, shared understanding of the marital estate. It also helps when there's at least a reasonable level of trust between the parties, or at minimum a genuine willingness to negotiate in good faith, even if the relationship itself has broken down. Representation matters too, though not in an all-or-nothing way: cases go more smoothly when both parties are represented, or when an unrepresented party is genuinely comfortable navigating the process on their own. Underlying all of it, financial disclosures need to be complete and verified before anyone sits down at the table. Without that foundation, Tia noted that mediation tends to produce agreements that look resolved but aren't actually built on solid ground. When Is Mediation Not Appropriate? On the flip side, Tia was direct about when mediation isn't the right fit. If one spouse controls all the financial information and the other hasn't yet had a chance to understand the marital estate, mediation can end up locking in an imbalance rather than resolving it. The same is true when there's a documented pattern of coercive control or financial or domestic abuse. In those situations, the power dynamic in the room can overwhelm the process itself. And she flagged one pattern in particular: when one party is using speed as a strategy, pushing to reach an agreement before the other side has had time to get informed. That's not mediation working as intended, and mediation is suddenly used as leverage. How Do Financial Imbalance or Coercive Control Change Things? This is where Tia's perspective as both an attorney and a coach really came through. When one spouse has historically managed all the money, such as investments, retirement accounts, and business finances, and the other has been kept at a distance from that information, walking into mediation without addressing that imbalance first can lock in a deeply unfair outcome. In these situations, she emphasized that it's essential to build a complete financial picture before mediation even begins, ideally with a CDFA involved, and, where appropriate, a therapist or divorce coach to help address the emotional dynamics at play. Mediation isn't off the table in these cases, she noted, but walking in unprepared absolutely is. Does High Conflict Rule Out Mediation? Not necessarily, according to Tia. A skilled, neutral mediator can actually be more useful in a high-conflict case than a courtroom would be, where both parties get a limited window of time in front of a judge who doesn't know their family's history. What matters more than the conflict level itself, she said, is whether both parties come in with complete, accurate financial information and a genuine willingness to negotiate, even if that negotiation is tense every step of the way. What Financial Information Should You Have Before Mediation? From a preparation standpoint, Tia pointed to a few non-negotiables: a complete, verified sworn financial statement; a full list of assets and debts, including retirement accounts, investment accounts, and any business interests; and a clear understanding of the tax character of each asset, since a retirement account and a taxable account with the same balance are not always financially equivalent. She also stressed having a basic post-divorce budget in hand, along with clarity on how spousal maintenance guidelines might apply to your specific situation. Walking into mediation without these pieces in place, she said, is walking in blind. Can Mediation Succeed Without a Full Financial Picture? Tia was blunt on this point: not really, or at least not fairly. Agreements made without full financial clarity tend to look reasonable on paper and turn out to be lopsided in practice once the details are actually understood. This, she said, is the single biggest reason financial disclosure has to come before mediation, not during it, and certainly not after. The Biggest Misconception When I asked Tia what she wished more people understood about mediation, she didn't hesitate: that it's either fully mandatory or entirely optional. In reality, it's neither. It's a required step before litigation in most cases, and a powerful voluntary tool before that, but only when both parties are genuinely prepared to use it well. Tia's closing thought was simple. Mediation is a tool, not a finish line. Whether you're required to attend or choosing to go voluntarily, walking in with complete financial information is what determines whether that tool works for you, or against you. If you have questions about preparing for mediation or understanding your financial disclosures before you negotiate? Reach out to CFDA Amy Mahlen or Attorney Tia Zavaras as this is exactly the kind of preparation they help clients through every day.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "01/09/2026", "datePublished" : "01/09/2026", "headline" : "What Cases Benefit Most from Mediation?: An Interview with Tia Zavaras", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na2.net/hubfs/39875594/Imported_Blog_Media/qtq80-fMCIZ6-2048x1365.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/what-cases-benefit-most-from-mediation-an-interview-with-tia-zavaras", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "When people begin the divorce process, one of the first financial questions is often, “How can I keep the cost of divorce as low as possible?” Divorce can be expensive, and legal fees are often one of the largest costs associated with the process. If you and your spouse are communicating well and believe you agree on the major issues, it may seem logical to avoid attorneys altogether. As a financial professional specializing in supporting the divorce process, I understand the desire to control costs. I also regularly see the financial consequences of decisions that were made without a full understanding of the legal and financial implications. While not every person needs full-service legal representation throughout the entire divorce process, the appropriate level of legal involvement depends on the circumstances. In this post, we’ll explore what to consider if you are deciding whether or not to proceed with legal counsel, and help you understand what you may be giving up as you make the decision. Many People Navigate Divorce Without an Attorney A significant number of people represent themselves in family law matters. National research has found that approximately 70% to 80% of family law cases involve at least one self-represented party. In uncontested cases, the percentage of couples proceeding without attorneys can be even higher. But an uncontested divorce does not necessarily mean a simple divorce. The spouses may agree on the broad terms while overlooking important details related to: Retirement accounts Investment accounts Real estate Taxes Business interests Debt Insurance Future obligations The wording and enforceability of the final agreement Agreeing on the general outcome is not always the same as understanding the legal and financial consequences of how that outcome is structured. The Cost of an Attorney Is Not the Only Cost to Consider One of the most common reasons people avoid hiring an attorney is cost. It is understandable that someone going through a financial transition may not want to spend tens of thousands of dollars on legal fees. However, the cost of legal advice should be considered alongside the potential cost of making an uninformed decision. For example, an agreement may appear to divide assets equally but create very different after-tax outcomes for each spouse. A retirement account and a taxable investment account may have the same current value but very different tax characteristics. A house may have significant equity but also create future costs, including maintenance, taxes, insurance, and the potential need to refinance. For example, a couple may agree that one spouse will keep the marital home. But important questions may remain: What happens to the mortgage? Will the spouse keeping the home refinance? How is the equity being calculated? What happens if the home cannot be refinanced? Are there other assets being exchanged for the equity? How are future expenses being handled? Similarly, a couple may agree to “split the investments” without addressing how the accounts will be valued, which specific assets each spouse will receive, or how any tax consequences will be handled. These details can significantly affect the financial outcome. Legal Advice Does Not Automatically Mean Litigation Another common concern is that involving attorneys will make the divorce more contentious. However, this is not necessarily the case. The role of an attorney is to provide legal advice and representation. How that attorney works with the client can vary significantly. The right attorney for a cooperative divorce may be very different from the right attorney for a high-conflict case. If your goal is to reach an agreement efficiently, choose professionals who understand and align with that objective. The attorney does not have to take over the entire process. In fact, many people may benefit from receiving legal guidance while remaining actively involved in negotiating and making decisions about their own divorce. Transparency Divorce requires each spouse to have a full and accurate picture of what exists, including assets, debts, income, and benefits, before any agreement can be considered fair. Without legal guidance, it can be difficult to know whether you have actually received complete information, or whether you even know what questions to ask. For example, when reviewing a proposed settlement on your own, you may not think to ask: Has each spouse disclosed all accounts, including retirement accounts, HSAs, and any business interests? Are there assets titled in one spouse's name that haven't been addressed? Does the agreement account for hidden or deferred compensation, such as stock options or bonuses? Is there a full picture of debt, including anything incurred during separation? If there is a business, what might be involved or should you might want to consider? An attorney can help ensure the disclosure process is complete, request documentation when something looks incomplete, and help you understand what you're looking at once you have it. Skipping this step to save money upfront can be far costlier later. Post-decree conflict, or going back to court because an asset was missed, misvalued, or misunderstood, often costs significantly more in legal fees than the transparency process would have cost the first time around, on top of the stress of reopening a case you thought was closed. Navigating the Court System Even in the most cooperative divorces, the court system itself can be difficult to navigate without guidance. Family law procedure varies by jurisdiction, and the requirements for filing, disclosure deadlines, and required forms are not always intuitive, especially while also managing the emotional and logistical demands of the process itself. Common pitfalls for self-represented individuals include: Missing filing deadlines or required disclosures, which can delay proceedings or create unnecessary conflict Submitting agreements that don't meet the court's formatting or content requirements, requiring revisions and additional hearings Not understanding how to properly value or document an asset for the court's purposes Being unsure how to respond if the other spouse's filings change or introduce new issues An attorney (or in Colorado, in some cases an LLP) can help you understand what the court requires, keep the process moving efficiently, and reduce the chance that a procedural misstep turns into a substantive problem. Even limited-scope guidance, someone to review your filings before submission, or explain what a hearing will involve, can prevent the kind of delays and frustration that make people believe going without an attorney saved them money, when in fact it extended the process and increased their costs. Consider Different Types of Legal and Professional Services There is a middle ground between handling everything yourself and hiring an attorney to manage every aspect of the divorce. Limited-scope, or “unbundled,” legal services allow an attorney to assist with specific parts of a case. For example, an individual may hire an attorney to: Explain their legal rights and obligations Review a proposed settlement agreement Answer specific legal questions Review documents before they are signed Help prepare for mediation Provide legal advice on a particular issue This approach may allow someone to receive targeted legal guidance without paying for full-service representation throughout the entire process. Colorado also has Licensed Legal Paraprofessionals, or LLPs, who may provide certain legal services in domestic relations matters within the scope of their license. For some individuals, an LLP may be an option to consider depending on the specific legal services needed and the circumstances of the case. As a financial professional, I understand why people want to minimize the cost of divorce. Legal fees are a significant expense, and not every case requires the same level of legal representation. However, the cost of legal guidance should be evaluated in the context of the financial decisions being made. Before deciding to proceed without legal counsel, consider whether a consultation, limited-scope representation, attorney mediation, or another form of legal guidance may be appropriate for your situation. The goal is not to make your divorce more complicated. The goal is to make sure that you understand the financial and legal decisions you are making before they become final. Contact me to talk through how I can provide the financial support you need during your divorce.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "02/08/2026", "datePublished" : "02/08/2026", "headline" : "Do I Really Need a Divorce Attorney?", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na2.net/hubfs/39875594/Imported_Blog_Media/qtq80-1fBtOD-700x467.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/do-i-really-need-a-divorce-attorney", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Divorce is often accompanied by emotional and financial challenges. These dynamics can feel overwhelming, especially if informal agreements were made between you and your spouse. Despite any pre-existing arrangements, financial disclosures during divorce are critical because they ensure transparency and protect both parties from future legal complications. In this post, we’ll explore why financial disclosures are required, how they safeguard both parties, and how they can prevent costly conflict down the line. Understanding Financial Disclosures In the divorce process, both you and your spouse are required to provide a comprehensive list of your financial information. This includes: Income: Salary, bonuses, and other sources of income. Expenses: Current living expenses, taxes, payroll deductions. Assets: Real estate, personal property, savings, retirement accounts, trusts, and business interests. Debt: Any existing liabilities such as mortgages, credit card debts, or loans. These disclosures provide a full financial picture and become the foundation for a fair division of assets as well as supporting information to base decisions upon. They are required for transparency and without them, one party may hide assets or income, which could lead to unequal settlement. Disclosures also serve to prevent future legal disputes, helping both you and your spouse understand the financial implications of your decisions. It’s somewhat common for couples to make informal financial arrangements during their marriage or separation, such as, I won’t touch your trust fund, or “You can keep the family business.” While these agreements might reduce conflict and complications at the time, they can create issues as the divorce moves forward. Informal agreements don’t always align with legal obligations, and in some cases, may even conflict with laws governing the division of marital assets. Financial disclosures make it easier for you and your spouse to consider all relevant information, and prevent either party from being disadvantaged due to an incomplete understanding of financial circumstances. Creating Financial Transparency By making financial disclosures, each party can be fully aware of the assets and liabilities at stake during divorce negotiations. This financial transparency reduces the likelihood of disputes after the divorce is finalized. When both spouses fully understand the financial landscape, there’s less chance that one will attempt to reopen the case due to an oversight. If disclosures are messy, individuals can discuss with an attorney if there are grounds to revise their decisions based on new information. This could result in additional costs, time, and stress for everyone involved. For example, one spouse may initially agree to forgo interest in a family trust but change their mind. Similarly, after consulting a financial expert, one spouse may realize they were unaware of certain property rights and the impact is has on either party’s situation moving forward. Considering Valuations Attorneys and financial professionals play a critical role in divorce proceedings, often recommending independent valuations of significant assets like businesses or trusts. These valuations support an accurate division of assets based on their current worth. Valuations can also clarify the financial implications of informal agreements. For instance, if one spouse initially agrees not to claim any interest in a business, a proper valuation may reveal that the business is more valuable than they realized, leading to a reconsideration by the party who previously had no interest. When extended family members are involved, financial disclosures can sometimes cause tension. For example, a spouse may initially express no interest in a family trust, only to change their mind after a better understanding of the situation. This can create friction, particularly if family members, such as in-laws, are reluctant to provide financial details or cooperate with the valuation process. In the long run, families often benefit from transparency, as it prevents disputes and protects both sides from future legal complications. In rare cases, there may be reasons not to disclose certain information immediately. For instance, if a spouse expects a large bonus or promotion, they may wish to follow their attorney’s advice on whether or when to disclose that information. Family business agreements should also be carefully reviewed with an attorney to determine what must be disclosed and what can be kept confidential. Financial disclosures are an essential part of the divorce process. They support transparency, can protect both parties from future disputes, and contribute to fair financial agreements. While informal agreements can complicate matters, formal disclosures and the guidance of financial and legal professionals help both parties avoid costly mistakes. Financial professionals can help with valuations and financial disclosures during divorce proceedings. They work alongside your attorney to ensure you are fully informed, educated, and protected throughout the process. Reach out to A.M. Financial or other Certified Divorce Financial Analysts to ensure you are making the best financial decisions during your divorce.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "02/10/2024", "datePublished" : "02/10/2024", "headline" : "The Importance of Financial Disclosures in Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-DvnTO4.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/the-importance-of-financial-disclosures-in-divorce", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "As a financial professional working with individuals and families for over two decades, and specifically divorce for nearly 9 years, I've encountered numerous complex cases, especially when it comes to splitting assets and income streams in a high net worth divorce. Unlike typical divorces, where the division of assets may involve a house, a car, and some savings, these divorces often include a portfolio of financial holdings, from real estate to various investment vehicles, and complex compensation structures. In this blog post, I provide insights on the unique challenges and considerations involved in navigating the financial landscape of high net worth divorces. Complex Assets and Income Structures One of the defining characteristics of a high net worth divorce is the complexity of assets and income. From multiple real estate properties to various investment portfolios, including both traditional assets and emerging investments like cryptocurrency, each investment comes with its own tax implications, liquidity considerations, and risk profiles. Additionally, executives or business owners may have compensation packages comprising of stock options, restricted stock units, and deferred compensation, adding layers of intricacy to determining current and future income streams and property considerations. Specifically, complexity often arises in the following ways: Determining separate versus marital property: This may require historical reporting, review of trusts, or analyses of prenups. Valuing assets: You may need to hire additional professionals such as appraisers and tax specialists, and conduct valuations. A discovery process, or search for hidden assets, may require a forensic accountant. Business Valuations and Retirement Accounts In high net worth divorces, businesses owned by you or both you and your spouse often require thorough valuations, which can be both costly and time-consuming. You may have invested capital in other businesses as well, through venture capital or other investment structures. Similarly, retirement accounts, possibly spanning several types and structures, require professional assessment for equitable division. Inheritances, Trusts, and Income Streams Determining the marital or separate nature of inheritances or assets held in trusts adds another dimension to the asset division process and always requires oversight from an experienced family law attorney. In some cases, high net worth individuals may have multiple income streams that are taxed differently. These dynamics are best assessed by a team of professionals, including tax and financial experts, in an effort to provide you with a comprehensive understanding of each source and its implications for post-divorce financial stability. Time and Conflict Unlike conventional divorces, which typically conclude within six months, high net worth divorces often extend over one to two years or longer due to the complexity of financial arrangements. Gathering documentation, conducting due diligence, and valuing assets require meticulous attention to detail and may involve engaging additional professionals such as appraisers and forensic accountants. Addressing any unmet financial needs during this extended process can also be stressful and become timely and expensive. This will likely take an emotional toll on you, your family, and could negatively impact your career and/or social life. Spousal Support and Retirement Planning Spousal support in high net worth divorces falls outside of spousal support calculation norms, encompassing various income sources beyond wages, such as rental income and investment dividends. Therefore, property division can feed into the support considerations. Furthermore, if you are in your 50s or older, retirement planning takes precedence, resulting in a thorough evaluation of future income sources and asset allocation, which can result in financial security in later years. The Importance of a Divorce Team Given the multifaceted nature of high net worth divorces, assembling the right divorce team is important. In addition to experienced legal counsel, enlisting the expertise of financial planners, tax specialists, and divorce coaches can help streamline the process and minimize conflict. Effective communication and collaboration among team members helps navigate the complexities inherent in high net worth divorces. High net worth divorces present financial challenges that require careful navigation and expert guidance. By understanding the complexities of asset division, income assessment, and long-term financial planning, you can work towards equitable resolutions while safeguarding your financial future. With the right support system in place, your high net worth divorce process can accelerate a smooth transition to the next chapter of life. We assist in resolving the financial aspects of high net worth divorces. Contact me, Amy Melander, CFP®, CDFA®, for a free consultation to learn more about our services.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "02/05/2024", "datePublished" : "02/05/2024", "headline" : "Navigating a High Net Worth Divorce: Financial Insights", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-PzTegD-768x512.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/navigating-a-high-net-worth-divorce-financial-insights", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Deciding the fate of marital property is a crucial aspect of any divorce settlement. The process often involves intense emotions and complex financial considerations, making it all the more challenging. One common alternative couples are considering to handle the marital home that has gained popularity in today’s unique market conditions: loan assumption. The recent increase in both interest rates and home prices has added additional pressure on homeowners navigating divorce, limiting their available options. As a result, many individuals are actively seeking creative and practical alternatives. In this blog post, we explore the nuts and bolts of loan assumptions to help you make an informed financial decision that aligns with both your financial goals and your unique divorce circumstances. What is a Loan Assumption? In addition to significant increases in housing costs that we have seen since the pandemic,, coupled with the reality of doubling housing costs for a divorcing couple, many couples are evaluating loan assumptions to minimize overall housing expenses. This option provides an opportunity to maintain current, affordable housing costs, retain homeownership, and/or to provide stability for children. Is a Divorce in Your Future? Get Prepared with These Essential Tips. A qualified loan assumption is when one party of a joint debt, such as a shared mortgage, qualifies to retain and retitle the original loan into their name, solely. This essentially releases the other debtor (typically a former spouse or domestic partner) from the mortgage payments and debt obligation. Many homeowners are looking to explore this option in a divorce under the assumption that the individual retaining the loan will be able to keep the original loan terms, where they hope to keep previous low mortgage rates and their associated lower, current mortgage payments. Clients in the Colorado area are looking into loan assumptions to determine if they are an option as they go through their divorce. Oftentimes, bank representatives may even confirm the availability of a loan assumption. However, according to the Certified Divorce Lending Association, loan assumption options may not always meet client expectations post-divorce. It’s important to work with a Certified Divorce Lending Professional (CDLP) or mortgage planning assistance to determine which mortgage path is best for you during your divorce and to determine what information you can rely on to make decisions in your divorce that remain reliable post-divorce for agreements to be carried out. Keep these important considerations in mind as you evaluate a loan assumption in you divorce: Not All Institutions Offer Loan Assumptions A CDLP can help you review your loan documents to determine if your current institution offers loan assumptions. Sometimes calling your loan provider and inquiring can be misleading (see bullet point 5 below). Some Types of Loans Are More Likely to Provide Loan Assumption Government mortgage loans such as FHA, VA, and USDA loans often offer loan assumption programs. When it comes to VA loans, if the individual assuming a VA loan is not a veteran, the veteran will forgo their VA entitlement as long as the VA loan assumed is operating until it is paid in full. This limits a veteran’s ability to obtain another VA loan on a future property. Conventional loans may offer loan assumption programs, but are not required. Actual Loan Assumption Terms May Not Reflect Original Terms While institutions may offer loan assumption, they are not required to provide a loan assumption with the original loan terms, such as the original low interest rate. They can sometimes offer a loan assumption with higher rates or any other terms their current procedures deem necessary at the time. No Cash/Equity Buy-Out Absolutely no cash can be taken out during a loan assumption. Therefore, if the spouse who is not retaining the home requires an equity cash payment in order to produce an equitable and agreeable division of asset terms, a loan assumption can not be used to meet those needs. Mortgage Sales Practices Can Be Misleading Mortgage sales is a practice and financial institutions do their best to keep their current customers’ business. Be aware of bait and switch behaviors where mortgage professionals offer you one thing and, after further inquiry or qualification processes, offer you something different then expected, with higher rates then the original loan, a traditional refinance loan, or possibly no offering at all. Once again, working with a Certified Divorce Lending Professional for mortgage planning assistance can help protect you from these practices and provide reliable post-divorce information. Is Assuming a Loan Best for You? Even armed with this information, decisions around a loan assumption can be challenging. As you consider whether this is the right financial path in your divorce, keep the following in mind: While you do normally save on fees in a loan assumption (as compared to a refinance), you lose the option of re-amortizing your loan over a new 30-years. The latter approach could result in lower payments and provide you with more cash flow as you transition into new financial responsibilities on your own. Modeling the option of loan assumption against refinancing with different teams and current interest rates is important. Find a Certified Divorce Lending Professional to help you align your lending strategy to your long-term financial goals. While a loan assumption doesn’t require a full refinance, you do have to qualify for the payments on your own. This includes an evaluation of your income, assets, credit scores, and more. Typically, loan assumptions are a more affordable option than a refinance, because there are fewer fees, no appraisals needed, no application fees, and no fees paid to title/insurance companies. Consider the timing of your divorce alongside the timing of this decision. More traditional refinances typically take 30 days and loan assumptions can take 3-6 months. During this time, interest rates can also change, which could impact your strategy. Deciding the fate of marital property in divorce is a complex and emotionally charged process. However, amidst the challenges, loan assumptions have emerged as a popular alternative to refinancing or selling the marital home in today's unique market conditions. By staying informed and seeking professional guidance, you can navigate the complexities of divorce and make sound financial choices for a stable future. At A.M. Financial, we can help model various approaches and show you how they will impact your budget, cash flow, and long-term goals. Contact us to learn more about how we can support your evaluation of a loan assumption or other financial aspects of your divorce in a free consultation.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "01/08/2023", "datePublished" : "01/08/2023", "headline" : "What is a Loan Assumption?", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-9SCbQC-2048x1365-1.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/what-is-a-loan-assumption", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Getting a divorce means learning a whole new vocabulary of legal and financial terms. Therefore, having a team of experts to talk you through new concepts and what to consider as you make important decisions is essential to surviving the divorce process. In this post, we share our expertise around how to determine whether your property is separate or marital and what that means or your division of assets. Please note that this article details general expertise and please consult your attorney and team of professionals for specific guidance. What is considered Marital Property? Just as it sounds, marital property is shared property in the marriage. Examples of marital property include property acquired after the parties are married, which is technically from date of marriage to date of filing for divorce however, the laws do vary by state and in some cases by specific situations. Marital property also includes property appreciation, which happens if the property was acquired before the marriage by one spouse but has gained value during the marriage. That appreciation is considered a marital asset. On the other side, debt accrued together is also marital debt. Sometimes questions arise with clients about how property is titled or who’s name is on accounts. It is important to note that it does not matter whose name is on the titles of cars, homes, rental properties, or other assets. If they were acquired while the parties were married, they are shared assets regardless of these legalities. The same goes for money in separate bank accounts, which is marital property if that money was accumulated during the marriage. In fact, all income earned by either spouse during the course of the marriage is considered a marital asset from a fundamental perspective. Gifts given from one spouse to the other during the marriage are typically marital property, although some exceptions apply and it’s always a good idea to seek legal advice from a state-specific specialist. Lastly, sometimes property exceptions are outlined in a prenup or postnup, which should also be reviewed by an attorney during your divorce. What is considered Separate Property? On the other hand, separate property is any property acquired separately before the marriage or any property or assets acquired after separation (even before the divorce is finalized). Exceptions to this, some of which are uncommon, include: Any gifts given by a third party to one spouse Inheritances acquired by either spouse at any time Money from a personal injury lawsuit paid specifically to one party for pain and suffering It’s important to note that all separate items must remain the party’s separate name in order to remain separate property. If these assets are co-mingled into joint title or joint accounts, they can become marital property. How is property divided? Generally, all marital property, assets, and debts are divided between the parties in a divorce. A division of property does not necessarily mean an exact physical division, but the overall value of all assets will be divided equally. For instance, if one party would like to retain all rental properties, the other party may receive more retirement funds. Separate property is not subject to division in this process. When you divide property, overall percentages are close to equal (50/50) in the end. If the division is not exactly equal the parties can either agree to the difference or can determine an ‘offset’ transaction in which one party will pay the other spouse a specific amount in order to make it as equal as possible. This is where negotiation strategy from your attorney and short- and long-term planning come into play with a financial advisor. Keep in mind that the overall percentage of assets can be drastically skewed if taxes are not taken into consideration, sometimes by up to 40% or more. A Certified Divorce Financial Analyst can help you perform analysis on this as most family law attorneys do not provide this service. Each divorce is different and parties have unique wants and needs based on their goals and vision of the future. Some things may be more emotionally or psychologically important to one part or better align to future goals and plans. For example, you can’t physically split a house, but one party can receive the house in the divorce and the other can receive the cash from refinancing the home, or another asset to offset the difference. One party may value the home more for the kids while the other may want to retire earlier. In this case, one spouse could also buy the other out. As another example, If maintenance is involved, parties can opt for a lump sum payout instead of monthly payments that would alter a 50/50 division. Equity in the home, or other assets, can be provided to the individual receiving maintenance in lieu of monthly payments. There must be sufficient assets available for this to be an option. This might be important to one party if cash is needed for a home down payment or vehicle purchase. When you officially transfer a property from a marital asset to one party in the divorce, the spouse not awarded the property must consent and relinquish all rights, title, and interest in the property by deed or other written agreement. This usually happens post-divorce with written stipulations of a specific deadline. At A.M. Financial, we help you understand different options for splitting marital property and what those options mean for your financial outlook now and in the future. We can provide the analysis you need to make decisions, and discuss how your needs and values align accordingly. Contact us for a free consultation and learn more about how we can support your divorce today.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "03/01/2023", "datePublished" : "03/01/2023", "headline" : "Separate vs. Marital Property: Understanding the division of assets in your divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-cpOdn4.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/separate-vs-marital-property", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "If you are going through a divorce, one of the top questions likely on your mind is what to do with your marital home. This decision has financial, emotional, educational, and even social implications. Market conditions and current real estate dynamics can also play into how you divide your home. Recently, we talked with a Denver real estate expert, Shirley Jenkins, to get some insights on handling real estate during a divorce. In this post, Shirley outlines four considerations to keep in mind when weighing the pros and cons of selling your marital home. Financial Considerations First and foremost, either party who wishes to keep the marital home should meet with a financial specialist to understand whether financing the home on their own is an option. A financial advisor or lender can help you understand your bottom line numbers, determine whether you have sufficient assets, and help you understand the tax consequences of selling versus keeping your marital home. Regardless of what you decide to do with the home, recognize how important it is to meet with experts who will prevent you from making decisions based on emotions. Instead, experts ranging from financial advisors to tax specialists to mortgage lenders will give you facts and objective opinions based on numbers. A financial advisor or certified financial divorce analyst can help you understand whether you can afford your home right now. They can also help connect with experts who can pre-qualify you for another home purchase if you want to see what options are out there. However, many lenders will pre-qualify you at the top of your range and underestimate the additional expenses of owning a home, including maintenance costs and taxes. Right now, many people buy a home over the list price based on appraisals of recent sales in the neighborhood, and many homes are currently overvalued. These dynamics lead to higher tax bills because taxes are based on your assessment value. Therefore, if you end up buying a new home, and buying high, you will have to pay significantly more on taxes than you likely planned for when you were prequalified for your home loan. This, combined with common job changes during a divorce and current market declines can inflate your overall home costs even more. Emotional Considerations Once you understand whether you have the financial means to keep your marital home, it’s time to consider the emotional element of this decision. Ask yourself whether you want the home and the memories that go along with it. Some divorcing couples tend to relive those memories again, ranging from good memories of bringing your kids home from the hospital as newborns to remembering rooms where heated arguments occurred during the marriage. Sometimes, a divorce is a great time for a fresh start and it is in your emotional best interest to detach from that part of your previous life. No matter what you decide about the emotional aspects of the home, once you decide you want to sell it, it’s important to make a mental transition into seeing your home as real estate without the emotional attachment of the memories. You can take the memories with you, but decoupling the emotions from your home will make the sale easier. Timing Because market uncertainty, lending options, and even the age of your children are important considerations in selling a home (and purchasing a new one), it’s critical to consider timing as an element of this decision. For example, you may have a child with special needs or a particular attachment to a school that would make it extra difficult to move out of the neighborhood. You may be facing economic conditions that make it difficult to get a reasonable loan or are in-between jobs, which could make it nearly impossible to qualify for the size of mortgage you need. Notice how the particular timing of this situation impacts your decision to sell now, sell later, or keep the marital home. Option to Rent Sometimes, selling your marital home and renting is a great option, especially if you are in a situation where you could lose money keeping your home. While real estate is one of the best investments you can make, you generally have to hold onto the property for 7-10 years to get a good return on your investment. While rent can never be recouped, you don’t lose money when you rent either. In the current market, rent prices will continue to go up significantly, at least for the next 18 months. Paying rent each month means less money in your bank account for a downpayment for a house you own. Once again, get input from realtors, lenders, trusted friends, and people working on your divorce team who are experts in their field. Listen to their advice rather than make decisions based on emotion. Taking the next step in the process of selling or keeping your marital home as part of a larger division of assets isn’t simple. There are a variety of factors to consider and Amy Mahlen of A.M. Financial can support your decision by providing insight into the financial aspects of this decision. If you have additional questions about the Denver real estate market and what to expect from the current market dynamics, contact Shirley Jenkins 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" : "What should we do with the home in our divorce?", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-QV5ycb.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/home-in-divorce", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ```