Divorce Financial Planning Services

Divorce is not only traumatic and stressful; it can also be a real financial challenge and strain. Now two households must survive on the same dollars formerly supporting one. On top of that add on anger, hurt, disappointment, fear, and insecurity. Many couples have a hard enough time as it is communicating while together, hence the possible reason for divorce. Try discussing how to divide assets while separated.

Questions such as:

• Who bought and paid for what?
• When were things purchased?
• Who created the debt? And when?
• Who made the most money?
• Who spent the most money?
• Who contributed which assets to the marriage?
• If there is a non-working spouse, how will they support themselves? Plan for retirement? Life insurance needs?
• If there is a business, how will it be split up? How will future earnings be handled?
• How will the house equity be divided? Will the house be sold?

These are just a few of the questions that will initially be asked. As the divorce becomes more involved, as parties become more impatient, and as legal fees add up, more and more questions will arise.

Divorce financial planning is not just about dividing assets, it’s about the future, your future. Although attorneys are educated and trained on the legal issues of divorce and custody, the financial planning aspect of it is something attorneys are not. For legal advice you seek an attorney. For financial advice you seek a financial planner. It makes sense to have both on your advisory team.

The financial planners at the 401(k) Hotline are well versed in divorce financial planning issues and can prove to be a valuable member in your advisory team. Depending on your individual situation, our job at the 401(k) Hotline is to either minimize the amount awarded to your ex-spouse or maximize your potential award.

With your permission, we coordinate efforts with your attorney and/or accountant to ensure these issues are covered and implemented.* Please Contact Us for your FREE initial consultation.

Please also visit our Divorce Settlement Analysis and Consultation, What is a QDRO? and QDRO Consultation and Services links.

 

* This information does not constitute tax and/or legal advice. FSC Securities Corporation and/or its representatives do not provide tax and/or legal advice. Please consult your tax advisor and/or attorney pertaining to your particular situation.

If you are under age 59 ½, a 10% premature penalty may be assessed on all distributions you receive. Waiver of the 10% premature penalty may apply in some specific circumstances. Employees should consult their tax advisor pertaining to their particular situation.

By taking substantially equal periodic payments, you avoid incurring the 10% premature distribution penalty. The substantially equal distribution schedule selected must continue for at least 5-years or until you reach age 59 ½, whichever is longer, or you will be subject to a 10% premature distribution penalty on all payouts already received. Further details with respect to substantially equal periodic payment formulas are provided in IRS Notice 89-25.

All distributions from your retirement account are taxable in the year received. Please note, that at age 70 ½, you must begin taking minimum distributions from your retirement plan.

Distributions for any of the above reasons involve specific tax regulations and options. Please consult your tax advisor before requesting the distribution. This information does not constitute tax advice. FSC Securities Corporation and/or its representatives do not provide tax advice. Please consult your tax advisor pertaining to your particular situation.

Information and opinions expressed are strictly those of the author and may not be those of FSC Securities Corporation.