Peaceful Divorce

When couples are going through a divorce, what are some of the problems that they face while working through the compromise? Well – probably the two main reasons why couples get divorced are financial and communication issues.

Financially – they look at the different pieces of their collective and individual financial puzzle. They look at the division of assets, tax issues, cash flow and child support. For the division of assets, it is important for the client to understand, first, what state they are living in.  Is it a community property state – or is it a fair and equitable division state? Tax issues pertain (pretty much) for federal income tax and must run by the Internal Revenue Service code. Cash flow is exactly what it says. How much cash do I have after I pay federal taxes, state taxes and social security? After I pay all of my taxes, how much cash flow do I actually have in the end? That figure, is what you really have to be able to divide in a divorce!

A lot of times when it comes to the division of assets,  we question – is it separate property or is it martial property? That is stated by the state that they live in. For example, if I have an inheritance or gift – is that is separate property? It is something that was left solely to me vs. if I work and my spouse does not work. Just because I make all the income is irrelevant. This is marital property –  it is income earned during the marriage.

What are we going to be paying in taxes when we are divorced?

Click here to read the entire article

Views: 51

Comment

You need to be a member of Peaceful Divorce to add comments!

Join Peaceful Divorce

Become an affiliate of the Happily Divorced! book and audio program! Let Reformed "Killer" Divorce Attorney, Cynthia Tiano, and Dr. Max Vogt, Marriage and Family Psychologist, take you on an adventure into the lives of two families going through the divorce legal system - one doing "legal battle" and the other creating a "peaceful divorce". Learn how to create a Win-Win from their experiences... HappilyDivorced.org


Events

Latest Activity

Robert D. Bordett, CFP, CDFA posted a blog post

How Important Is the Budget in Divorce Planning?

I think everyone’s least favorite word is BUDGET. Why don’t we want to hear that word? Think about it: We’re asking ourselves to do something we don’t want to do — or worse yet, someone else is asking us to do it. While we might not like them, having a budget does help. In divorce planning — whether you are going to litigation,…See More
Sep 18
Robert D. Bordett, CFP, CDFA posted a blog post

21st Century Parenting Plans

I remember when the default custody arrangement had one parent as the custodial parent, and the other parent was known as the “Disneyland parent.” They had their children every other weekend, and maybe once during the week for dinner. Today it is more common to see joint parenting time consist of one week on, and one week off or “two-two-five-five” time,…See More
Aug 15
Robert D. Bordett, CFP, CDFA posted a blog post

Including a Financial Professional in Your Mediation

Very often, couples who are divorcing amicably, or who have straightforward financial situations, will forgo meeting with a financial professional while they go through mediation. Though this may seem logical on its face, “going it alone” may result in unnecessary hardship and inaccurate calculations.  It is easy to simply look at a tax table today and say “I am going…See More
Jul 30
Robert D. Bordett, CFP, CDFA posted a blog post

What About the House?

Going through divorce means dealing with hundreds of details, some more important than others. One detail that merits extra contemplation is how to deal with the marital home.Does one spouse want to keep it because the children still live there? You don't want to disrupt their lives any more than is already happening. What if the children are grown? Do you still need that much of a house?Here are the three most common means of dealing with the house in divorce:Selling the house and dividing the…See More
Apr 24

Badge

Loading…

About

© 2019   Created by Cynthia Tiano, Esq..   Powered by

Badges  |  Report an Issue  |  Terms of Service