Divorce Settlement Analysis and Consultation

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.

Evaluating assets that are to be divided, including before-tax and after-tax evaluations, hidden capital gains received from investments and/or the sale or transfer of a home, retirement plans (including pensions, IRAs, 401(k) plans, deferred compensation plans, etc.), employer stock options, life insurance, business partnership agreements, and dividing debt is just the beginning of a list of issues that should be reviewed and discussed prior to a settlement.

Other issues may include:

• Inflation
• Pay increases
• Mortgages
• Debt
• Child support
• Social security
• Income taxes
• Alimony
• Future business earnings
• Family home / vacation property
• Investments
• Children’s college funding
• Health insurance / life insurance needs
• Retirement

A financial planner can point out these issues that should be discussed, analyze the situation, and provide a suitable recommendation for you. The financial planners at the 401(k) Hotline are well versed in divorce 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 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.